To establish a world class startup ecosystem in the state by developing a robust infrastructure and providing conducive policy environment, the policy Uttar Pradesh Startup Policy 2020 has been issued.
This policy is applicable for 5 years from the date of its notification (15th July 2020).
The incubator shall be responsible to support startups by providing plug and play facilities, meeting/conference rooms/office space and shared administrative services, high-speed internet access etc. The Incubators shall also provide various services to startups such as mentors, training, funding, legal services, accountancy services, technical assistance, networking activities, marketing assistance etc. in collaboration with State/Central Government, as possible.
2.1 Eligibility for Incubators:
Host institutes willing to get recognized under UP Startup Policy shall be required to fulfill the following parameters:
- Floor Area:10,000 sq. ft. for educational institutes and 5,000 sq. ft. for incubators occupying commercial space.
- Dedicated Incubation Team: Incubator must employ a dedicated incubation manager to manage the regular operations along with 2 other team members to support.
- Co-working Space: Incubator shall ceate coworking space of at least 100 sq. ft. per seat.
- Meeting Rooms: There should be availability of dedicated meetings rooms available to be used for client meetings by startups.
- Conference Room: A conference room should also be there to hold small events or mentoring classes for startups founders.
- Cafeteria/Refreshment Zone: Refreshments zone shall be established for startups and visitors working from/visiting the incubation center.
Apart from physical infrastructure, Incubators shall also be required to set up digital infrastructure to offer incubation services and engage with startups/other stakeholders digitally. They will be required to provide input in digital format (through API integration with Start-In-UP Portal, wherever possible) against Key Performance Indicators assigned by the Startup Nodal Agency/PIU to all GoUP recognised incubators.
2.2 Eligibility for Startups:
3.1 Incentives to Incubator:
Capital grant on setting up/scaling up technology infrastructure for the private host institutes shall be reimbursed upto 50 percent of the eligible amount subject to maximum limit of INR One (1) Crore, first installment to be capped at 25 percent of the maximum limit. The limit of INR 1 crore shall be increased to INR 1.25 crore for incubators established in Purvanchal/Bundelkhand regions.
Financial support to incubators upto INR 30 Lakhs per year to cover operational expenditure for 5 years or until self-sustainable whichever is earlier. This incentive shall be granted to those incubators which have 10 or more startups incubated. The year-on-year continuation of operational expenditure support shall be solely dependent on incubator’s performance assessed through Incubator Performance Evaluation Framework released by Nodal Agency and approved by PMIC.
Acceleration programs are short to medium term mentoring programs to support startups with business expansion once they have scaled up from an idea to formal product launch in the market.
A matching grant of INR 5 Lakhs per year (Maximum INR 2 Lakhs per program) shall be given to competent institutions (upto 25 institutions per year) to run acceleration programs for supporting the startups. Acceleration programs with minimum 10 startups participating shall be eligible to get incentives under this program and maximum 100 programs could be organized in a year under the policy. The competent institutions in this case would be GoI/GoUP supported/sponsored incubators, angel investors registered with SEBI/Banks or reputed academic institutions.
Annual Incubator Rankings:
An external agency will be engaged to perform the evaluation and assign rankings. Top3 performers in the ranking will be awarded amount of INR 3 Lakhs, 2 Lakhs and 1 Lakh per year to the winner, first runner up and the second runner up respectively.
All Navratna incubators shall get incentive of INR 10 Lakhs per annum for the expenses incurred to support host institutes/incubators for developing/scaling up the incubation capabilities. Navratna incubators shall be identified only after achieving the count of minimum 50 incubators recognised under Start-In-UP program of GoUP.