Shivraj Singh Chouhan Launched MP's Startup & Incubation Policy

The Madhya Pradesh government has launched a policy to provide an operational fund support up to Rs 5 lakh to incubation centers to meet their recurring expenses.

BHOPAL: The incubation centers will also be offered a full refund of their stamp duty and registration fee. The fund will include consultancy fees of industrial mentors, who provide their services at the centres. However, there will be cap of Rs 2 lakh on such expenses.

“Our objective is to go ahead with Prime Minister’s Standup India mission and develop an eco system, so that innovations, research and manufacturing can sustain in the state,” said Chief Minister, Shivraj Singh Chouhan, adding, “State will soon have incubation cells, which would be a one-stop solution for all start-ups and incubators queries and for liasoning with government functionaries."

Madhya Pradesh Government has defined start-ups as initiatives having a turnover below Rs 25 crore during its first five years, beginning from the date of registration. The incubation centers and startups will also have fund exposure from bankers and other funding agencies.

Responding to Chouhan's demands for greater central assisstance in the state, Union minister for MSMEs, Kalraj Mishra, said, “If state sends us projects pertaining to cluster development centers and other facilities, we will surely accord priority to the state on merit basis.”

A tool room will also be set up in Acharpura village, where an investment of Rs 125 crore will be made. Earlier, a trust promoted by the Anil Ambani-led Reliance group had shown interest in setting up an Information Technology university in Acharpura, which was withdrawn later.

As part of providing assistance for competition involved in start-ups, the state will promote innovations and mobilize students to build their career in entrepreneurship.

State and central institutes will be encouraged to organize annual start-up competitions along with incubators, wherein the state will provide assistance of Rs 1 lakh per event.

Besides, the policy is also envisaged to provide an interest subsidy of 8 per cent per annum that will not exceed Rs 4 lakh for a period of three years.

The state will also reimburse lease rentals (against land) bearing 25 per cent of the rent, or by offering Rs 3 lakh, whichever is lower.

Startups And incubation centers will avail assistance in patent quality, promotion subsidy and marketing as well.