Lok Sabha Question No. 3668 (UNSTARRED), answered on 2016-08-08
Subject: Protection of Historical Shrine of Shiva
Ministry: COMMERCE AND INDUSTRY
Asked by: T. RADHAKRISHNAN, VIJAY KUMAR S.R., KUNWAR HARIBANSH SINGH, SUNIL BALIRAM GAIKWAD, GAJANAN CHANDRAKANT KIRTIKAR, BIDYUT BARAN MAHATO, SUDHEER GUPTA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

## UNSTARRED QUESTION NO. 3668. TO BE ANSWERED ON MONDAY, THE 8 TH   AUGUST, 2016.

## CONFERENCE ON STARTUP INDIA PROGRAMME

## 3668.   SHRI T. RADHAKRISHNAN:

SHRI S.R. VIJAYAKUMAR:

KUNWAR HARIBANSH SINGH:

DR. SUNIL BALIRAM GAIKWAD:

SHRI GAJANAN KIRTIKAR:

SHRI BIDYUT BARAN MAHATO:

SHRI SUDHEER GUPTA:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government has called the first States' Conference on the Startup India initiative recently;
- (b) if  so,  the  names  of  the  States  which  have  participated  along  with  the  issues discussed therein;
- (c) whether the Government has called these States to present the work they have done on the Startup ecosystem;
- (d) if so, whether these States provided update on the progress made on the action plan and work done for startups so far; and
- (e) if  so,  the  details  thereof  along  with  the  other  steps  taken/being  taken  by  the Government to boost the Startup programme in the States?

## ANSWER

## वाणिज्य एवं उद्योग राज यमंत्री ( स्वतंंत्र प्रभार )( श्रीमतंी निममला सीतंारमि ) THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a): Yes, Madam. The first Startup India States' Conference was held on 23 rd July, 2016 in New Delhi.
- (b) & (c) : All  State  Governments  and  Union  Territory  Administrations  were  invited  to participate in the Conference. The list of States/Union Territories which participated  in  the  conference  is  at  Annexure  I.    Five  states  viz.  Gujarat, Karnataka,  Kerala,  Rajasthan  and  Telangana  were  called  to  present  the  work done by them on the startup ecosystem.
- (d) & (e) : Yes, Madam.  The details of progress made on the action plan for startups by these States are available on the website: http://startupindia.gov.in/firstStateConf.php  and  steps  taken  by  the  Government to boost the startup programme is at Annexure II.

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## ANNEXURE-I

## ANNEXURE REFERRED TO IN REPLY TO PARTS (b) & (c) OF THE LOK SABHA UNSTARRED QUESTION NO 3668 FOR ANSWER ON 8 TH  AUGUST, 2016.

## List of States/UTs participated in the Startup India States' Conference on 23 rd July, 2016

1.    Andhra Pradesh
2. Bihar
3.    Chandigarh
4. Chhattisgarh
5. Delhi
6. Gujarat
7.    Haryana
8.    Himachal Pradesh
9.    Karnataka
10. Kerala
11.    Madhya Pradesh
12.    Maharashtra
13.    Mizoram
14.    Odisha
15.    Punjab
16.    Rajasthan
17. Sikkim
18.    Tamil Nadu
19.    Telangana

## ANNEXURE REFERRED TO IN REPLY TO PARTS (d)&(e) OF THE LOK SABHA UNSTARRED QUESTION NO 3668 FOR ANSWER ON 8 TH  AUGUST, 2016.

## Steps taken by Government to boost Startup programme

-  Startup  India  Hub  was  operationalized  on  April  1,  2016  to  resolve  queries  and  handholding support to Startups. The hub has been able to resolve 12,290 queries received from Startups through  telephone,  emails  and  Twitter.  To  seek  clarifications  pertaining  to  Certificate  of Recognition  as  a  'Startup'  by  Government  of  India,    Certificate  of  Eligibility  to  avail  tax benefits, seeking information on incubators or funding, one can get in touch with the Hub on Toll Free number: 1800115565 or email id                      dipp-startups@nic.in
-  Startup  India  Hub  would  soon  be  launching  interactive  online  learning  and  development module  to  educate  Startups  and  aspiring  entrepreneurs,  through  various  stages  of  their entrepreneurial  journey.  The  learning  and  development  module  shall  be  made  available through the Startup India portal (http://startupindia.gov.in)
-  DIPP  has  received  808  applications  for  Startup  recognition.  Out  of  these,  227  applications have been accepted and the rest have been requested to submit the required documents and have been referred to Startup India Hub for handholding support
-  A  maximum  fee  of  INR  5,000  can  be  charged  by  the  incubators  for  providing  letter  of recommendation to Startups. In cases where external expert(s) is/ are required to assess the innovativeness of a product/ service/ process, a maximum fee of INR 10,000 can be charged by the incubators
-  In order to augment the existing list of incubators, a module to recognize incubators has been launched. This shall enable incubators to obtain recognition from Government of India which will  allow  them  to  issue  recommendation  letters  to  Startups.  For  more  details  visit  the  link: http://startupindia.gov.in/applyforincubatorreg.php
-  A  panel  of  facilitators  has  been  constituted  for  providing  assistance  and  support  in  filing applications for Intellectual Property Rights (IPR), wherein, Department of Industrial Policy and Promotion  (DIPP)  would  bear  the  facilitation  cost.  To  get  the  list  of  facilitators  visit  link: http://startupindia.gov.in/upload/List\_of\_facilitators\_for\_patents.pdf
-  To  avail  IPR  related  benefits  (rebate  in  fee  and  free  of  cost  facilitation  in  filing  IPR applications), a Startup would not be required to obtain a Certificate of Eligibility from the InterMinisterial Board of DIPP (a Certificate of Recognition of DIPP would suffice)
-  The  Finance  Act,  2016  has  made  provision  for  Startups  to  get  income  tax  exemption  for  3 years in a block of 5 years, if they are incorporated between 1st April 2016 and 31st March 2019. To avail these benefits one must get a Certificate of Eligibility from the Inter-Ministerial Board of DIPP.
-  A new section 80IAC was inserted in the income-tax Act, 1961 to provide for 100% deduction of  profit  derived  by  eligible  start-up from  eligible business for three consecutive years out of five years at the option of the tax payer.
-  Amended section 54GB to provide exemption from tax on capital gains arising out of sale of residential house or a residential plot of land if the amount of net consideration is invested in equity shares of eligible start-up for utilizing the same for purchase of specified asset.
-  Inserted a new section 54EE in Income-tax Act, 1961 for providing deduction up to Rs.50 lakhs to capital gains in case the amount of capital gains is invested in units of notified fund setup for financing start-ups.
-  For  any  investment  in  shares  of  certain  Indian  'startup'  companies,  by  a  Indian  resident, exceeding the fair market value of shares, the excess amount will not be taxed in the hand of India 'startup' 'company as per terms of Notification No.45/2016 of Central Government'.
-  Tax exemption on investments above Fair Market Value have been introduced for investments made in Startups (as per definition). For details visit link: http://startupindia.gov.in/upload/Notification%20related%20to%20Tax%20Exemption%20on%2 0Investments%20above%20Fair%20Market.pdf
-  Startups falling under the list of 36 'white' category industries have been exempted from all the applicable  compliances  under 3 Environment Laws  viz. The Water (Prevention & Control of Pollution)  Act,  1974;  The Water  (Prevention  &  Control  of  Pollution)  Cess  (Amendment)  Act, 2003  and  The  Air  (Prevention  &  Control  of  Pollution)  Act,  1981.  To  get  the  list  of  'white' category industries visit link: http://startupindia.gov.in/upload/MoEF\_New\_Category\_of\_White\_Industries\_05\_03\_2016.pdf
-  Relaxed norms on prior experience and turnover for public procurement for micro and small enterprises  have  been  provisioned  in  the  Procurement  Policy  of  Ministry  of  MSME.  To  get details visit: http://startupindia.gov.in/upload/MSME\_Relaxed\_Norms\_for\_Startups\_10\_03\_2016.pdf
-  The Insolvency and Bankruptcy Code 2016 has been published  which will enable businesses wind up in 3 months
-  A  'fund  of  funds'  of  INR  10,000  crores  for  Startups  has  been  established  which  shall  be managed  by  SIDBI.  The  fund  will  invest  in  SEBI  registered  Alternative  Investment  Funds (AIFs) which, in turn, will invest in Startups. Thus, this fund will act as an enabler to attract private capital in the form of equity, quasi-equity, soft loans and other risk capital for Startups. 6 AIFs have been recommended for funding under FOFs.
-  7 proposals for Research Parks, 16 proposals for TBIs and 13 proposals for Startup centers have  been  recommended  by  the  National  Expert  Advisory  Committee  (NEAC)  formed  by MHRD. These proposals shall be implemented in the current financial year.
-  DIPP has  writen to top companies to request them to support the initiative by setting up new incubators or scale up existing incubators in collaboration with educational institutes.
-  DIPP  has  requested  State  Governments  and  administration  of  Union  Territories  to  set  up Startup Hub as well as incubators to help Startups during various stages of development.

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