StartUp India: Barely 1 in every 6 applicants qualifies so far
Of the first 189 whose credentials have been probed from the 400 applicants till date, barely 30 make it - and only one qualifies for IPR benefits
 "StartUp India: Barely 1 in every 6 applicants qualifies so far")
Nearly 400 start-up enterprises have filed applications under the government’s StartUp India programme to avail of benefits such as tax breaks and faster clearance.
“Of these, 189 requests have been examined,” a senior from the department of industrial policy and promotion (DIPP) told this newspaper. An inter-ministerial committee periodically examines the requests.
Of those examined, the bulk —nearly 150 —was found to lacked proper paperwork and were disqualified, the official quoted above said. Budding enterprises have to get certification from a recognised incubation centre, apart from other identification details. While lack of awareness has been an issue, the government is looking to increase the number of incubation centres. The StartUp India initiative, launched by Prime Minister Narendra Modi, earlier this year, offers incentives to encourage these entities. For instance, exemption from labour laws’ compliance for three years, no income tax on profit for three years and self-certification for other regulatory compliance.
Also, the government will hasten the establishment of start-up hubs and labs. A fund for start-ups was declared in the Union Budget and Rs 2,500 crore would be released annually over the next four years, to be invested in venture capital funds listed with the Securities and Exchange Board of India.
“Of these, 189 requests have been examined,” a senior from the department of industrial policy and promotion (DIPP) told this newspaper. An inter-ministerial committee periodically examines the requests.
Of those examined, the bulk —nearly 150 —was found to lacked proper paperwork and were disqualified, the official quoted above said. Budding enterprises have to get certification from a recognised incubation centre, apart from other identification details. While lack of awareness has been an issue, the government is looking to increase the number of incubation centres. The StartUp India initiative, launched by Prime Minister Narendra Modi, earlier this year, offers incentives to encourage these entities. For instance, exemption from labour laws’ compliance for three years, no income tax on profit for three years and self-certification for other regulatory compliance.
Also, the government will hasten the establishment of start-up hubs and labs. A fund for start-ups was declared in the Union Budget and Rs 2,500 crore would be released annually over the next four years, to be invested in venture capital funds listed with the Securities and Exchange Board of India.
Start-ups can register for such benefits on the StartUp India online portal. Only 30 start-ups have been asked to give extra information about their innovation and are currently in line to be awarded benefits; only one has got the approval to avail benefits for intellectual property rights. However, all of the 30 start-ups will receive other compliance benefits, the official said.
A large number of enterprises which applied also did not show innovation, a key necessity for being selected, he added.
Sources in DIPP said the start-ups selected so far are from a variety of fields, including agriculture, domestic applications and information technology-enabled activity.
The government will be organising a start-up conference in August. It will be showcasing the ministry's initiatives in the sector and hold seminars to help new entrants in the category. Refusing to put a number on the potential invitees, the government says it plans to call about 10,000 participants, as well as incubators, at the event.
The government also plans to invite prominent international start-ups to enter India's growing new economy at a similar conference next year, coinciding with the one-year anniversary of StartUp India.