Modi Government makes path to fulfil start-up dream easier
The Modi government has come up with more sops to encourage startups. Concerned over the fact that only a few aspiring entrepreneurs have got the government certification for starting new businesses, the Centre has relaxed the norms to avail holding hand benefits.
The Modi government has come up with more sops to encourage startups. Concerned over the fact that only a few aspiring entrepreneurs have got the government certification for starting new businesses, the Centre has relaxed the norms to avail "holding hand" benefits.
A senior Department of Industrial Policy and Production (DIPP) official said there were some complaints regarding easing of the rules or norms to get certificates. Now, the process has been simplified so that more startups could get the benefits of the startup action plan. Earlier, to get the benefits of an IPR, a startup had to get certificate from DIPP. There is an inter-ministerial board that gives certificates to startups after going through their project details. Now, a startup can get the IPR benefit adfter registering on the startup portal of DIPP. "The requirement of the startup certification by the inter-ministerial board has also been deleted from the scheme," says a letter issued by DIPP on July 11.
Many startups had complained about incubation centres and fee charged by those. A startup needs to take a letter of recommendation from incubators before registering on the Startup India portal. Now, the department has fixed a fee of Rs 5,000 for incubators. If the incubators take help of experts from outside to assess the innovative idea put by a startup, the fee charged will be a maximum Rs 10,000.
In another initiative, the DIPP will launch a learning module on the Startup India portal to help young entrepreneurs. It will have all the information on how to move forward with an innovative idea.
Over 200 aspiring entrepreneurs had applied with their different business projects on the Startup portal which was launched in April to provide a single-point contact for the entire startup ecosystem. However, only one could get the IPR benefit and another one could only get the government certificate. Officials said there were many issues such as most startups had not even completed all the formalities. Now, a learning module will help in resolving all the issues.
The government has already declared the fund for startups in the Budget and accordingly, Rs 2,500 crore would be released each year for over next four years to SIDBI. All the tax benefits will be extended to budding entrepreneurs after the passage of the Finance Bill.