Proposed startup policy of Punjab likely to be introduced by year-end

Tribune News Service

Vijay C Roy

Chandigarh, November 15

After approval from the state Cabinet, the Industry Department will take a call on whether to introduce the startup policy as a separate policy or as a part of the new Industrial Policy.

Aiming to boost and nurture the vibrant startup ecosystem in the state, the proposed policy is likely to be introduced by the year-end.

The earlier startup policy was a part of the Industrial and Business Development Policy, 2017, which lapsed last month. It is worth noting that after studying startup policies of various states such as Karnataka, Telangana and Kerala, the Industry Department has incorporated many best practices in the policy to follow a proactive approach to facilitate ease of doing business for startups in the state.

According to the draft policy, the eligible startups shall be provided an interest subsidy of 8 per cent per annum for a period of five years on the rate of interest paid on loans obtained from scheduled banks or financial institutions. Also seed grant up to Rs 3 lakh per startup shall be provided for validation of idea, prototype development, assistance towards travelling costs and carrying out field or market research. Further, reimbursement of 25 per cent of lease rental subsidy to eligible startup units established in the state, operating from incubators, IT parks, industrial clusters or any other notified location shall be eligible for a period of one year.

Further, the state intends to support cluster specific bottom up approach to build and strengthen startup and entrepreneurship ecosystem in the state.

In addition, it would also handhold women who have business ideas and are interested to start their business ventures. The state will provide specific schemes to promote women entrepreneurship. Currently, over 400 startups from the state are registered with Start-Up India-Department of Promotion of Industry & Internal Trade and Start-Up Punjab.

Salient features

• An interest subsidy of 8% per annum for five years on the rate of interest paid on loans from scheduled banks or financial institutions
• Seed grant up to Rs 3 lakh per startup shall be provided for validation of idea, prototype development, assistance towards travelling costs and carrying out research

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