Gujarat, Gujarat Industrial Policy 2020, State Government Scheme

Assistance for Start-ups/ Innovation under Gujarat Industrial Policy 2020

With a vision to make Gujarat a global business destination for next- generation sustainable manufacturing & service industry driven by state-of-the art infrastructure, employment generation, inclusive and balanced regional development and thereby contribute significantly to “Aatmanirbhar Bharat”, Gujarat Industrial Policy 2020 has been issued.

This policy shall be valid for a period of 5 years from 7th August, 2020.

The policy covers many schemes including:

  1. Scheme for Assistance of MSME
  2. Scheme for Capital Subsidy to Large Industries and Thrust Sectors
  3. Scheme for Enhancement of Technical Competence & Manpower
  4. Scheme for Assistance for Logistic Park
  5. Scheme for Assistance for Environment Protection Measures
  6. Scheme for Assistance for Start-ups and Innovation
  7. Scheme for Assistance to Industrial Parks
  8. Scheme for Assistance to Industrial Infrastructure
  9. Scheme for Assistance in R&D Activities.

In this post we shall discuss the aspects relating to Scheme for Assistance for Start-ups/ Innovation.

Meaning and Eligibility of Start up

Meaning and eligibility conditions of start up under this policy.

Assistance to Startups

Assistance to startup under this policy is explained in summary with the help of a chart.

1. Sustenance Allowance:

Sustenance allowance of Rs. 20,000 per month per startup for a period of one year. In case of startups having at least one-woman co-founder, Rs. 25,000 per month per start up will be provided as sustenance allowance.

2. Seed Support:

Seed support up to Rs. 30.00 Lacs will be provided to startup on the following:

  1. Cost of raw materials/ consumables/ hardware & software/ professional services/ other equipment/ tools required for prototype/ product/ process development.
  2. Market research.
  3. Testing & trials.
  4. Marketing/ publicity assistance: covers assistance to startups to attend national/ international events. The fees/ charges paid for attending the same will be covered and to and fro conveyance/ accommodation expenses will not be covered.

3. Assistance to Startups having a significant impact on society:

An additional support up to Rs. 10 Lacs will be provided to startups having innovative projects which have a significant impact on society, based on the conditions on approval/ sanction given by the SLEC.

4. Pre- Series A funding:

In the life cycle of a startup, there is a funding gap which is better identified as valley of death. This is a phase post commercialization where the Startup has just started generating revenue till the time period where its product/ service gets market traction. Such startups will be assisted in getting venture capital.

5. Interest Subsidy:

The startups which have been approved under this scheme will be eligible to avail an additional interest subsidy of 1%, maximum up to 9% on term loans under the provisions of scheme for assistance to MSMEs.

6. Assistance to enroll and participate for Acceleration Program:

Assistance up to Rs. 3 Lacs per startup will be provided to enroll and participate for national/ international recognized acceleration program. The fees/ charges paid for attending the same will be covered and to and fro conveyance/ accommodation expenses will not be covered.

7. Assistance for skill development:

Financial assistance up to Rs. 1 Lac per approved startup shall be given for participating in skill development training programs on reimbursement basis. Skill development trainings specific to soft skills, managerial skills, marketing skills, financing skills for the startup project is covered.

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