Lok Sabha Question No. 80 (UNSTARRED), answered on 2016-07-18
Subject: Start up Programme
Ministry: COMMERCE AND INDUSTRY
Asked by: NAGARAJAN P.

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

## UNSTARRED QUESTION NO.80. TO BE ANSWERED ON MONDAY, THE 18 TH  JULY, 2016.

## START UP PROGRAMME

## 80. SHRI P. NAGARAJAN:

Will the Minister of COMMERCE AND INDUSTRY

be pleased to state: वाणिज् यवव द्यग ं ्री

- (a) the  details  of  the  Start  up  programmes  launched  in  MSME  sector  in  the country during the last two years;
- (b) whether  the  Government  proposes  to  give  more  incentives  for  Start  up programmes in the country; and
- (c) if so, the details thereof?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a): Startup  India  is  a  flagship  initiative  launched  by  the  Government  of India  on  16 th January,  2016,  which  is  aimed  at  building  a  strong eco-system for nurturing innovation and startups in the country that will drive sustainable economic growth and generate large scale employment  opportunities.    With  this  Action  Plan  the  government envisages  to  accelerate  spreading  of  the  Startup  movement  from digital/technology sector to a wide array of sectors including agriculture,  manufacturing,  social  sector,  healthcare,  education    etc. In  the  MSME sector, 21 Livelihood Business Incubators (LBIs) and 2 Technology Business Incubators (TBIs) have been approved.
- (b)  &  (c):
- Government has given the following incentives to startups namely:-
-  The Government of India shall bear the cost of facilitation in filing of IP applications related to patents, trademarks and design.
-  To enable startups to reduce costs in their crucial formative years, startups  have  been  provided  up  to  80%  rebate  in  filing  patents (Patent Amendment Rules 2016).
-  Section 80-IAC has been introduced under Finance Act, 2016 which provides  for  tax  exemption  to  Startups  (Companies  and  LLPs) which are incorporated on or after 01.04.2016 but before 01.04.2019  for  any  3  consecutive  years  out  of  5  years  beginning from year in which startup is incorporated.
-  Tax exemption on investments above Fair Market Value has been introduced on 14 June, 2016 for investments made in Startups.
-  Section 54EE has been introduced under Finance Act, 2016 which provides for exemption of capital gain arising out of transfer of long term capital asset invested in a fund notified by Central Government.
-  List  of  36  industries  in  'white'  category  has  been  published  on CPCB's website. Further, CPCB has exempted industries in 'white' from  all  the  applicable  self-certifications  under  the  3  Environment Acts 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.
-  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.
-  A  'fund  of  funds'  of  INR  10,000  crores  for  Startups  has  been established  which  is  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. Rs. 500 crore has been released to SIDBI in 2015-16 and Rs. 600 crore in 2016-17.

*****