Scheme for assistance for Start Ups/ Innovation cleared

Ahmedabad, DeshGujarat

To achieve the target of incubating at least 2,500 new startups in next five years as envisaged in the new industrial policy 2015 which was announced last month prior to the Vibrant Gujarat Global Summit, the state government has cleared the incentive scheme for startups/innovations.

Under the new scheme, definition of “Innovation” has been described as the process of introducing new, or making changes with updated technology, large and small, radical and incremental, to products, processes and services that results in the introduction of something new and innovative products.

Any Individual group of individuals with innovative idea/concept will be eligible for incentive. Universities/ educational institutions, Incubation Center I PSUs I R&D Institutions, I private and other establishments will be eligible as an institution to support, and mentor to innovators as approved by Committee formed by the state Government.

Under the new scheme, institution will allow the innovator to use facilities available in the institution for Startups. Rs. 10,000 per month sustenance allowance for one year will be provided to the innovator whose project is recommended by institution as approved by Committee. Upto Rs. 5 lakhs assistance will be provided to the institution for mentoring service. Upto Rs.10 lakhs assistance will be provided for Cost of Raw material, I components & other related equipments required for the innovative process for the new product development based on approval of the Committee.

Project of Innovated Product will be assisted for getting Venture Capital. The eligible unit will be allowed reimbursement to the extent of 80% of the net VAT paid excluding additional Tax, and reduction of ITC as per the provisions of the G VAT Act, 2003. The reimbursement will be available for a period of five years from the date of production or the completion of limit of 70% whichever is earlier.

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