Odisha’s chief minister Naveen Patnaik who’s heading state’s cabinet has approved a new Startup Policy 2016, on Tuesday, to promote startups and entrepreneurship culture among youths and with this Odisha will join startup policy club of Indian states who have its own startup policy.
The chief minister would unveil the policy at the Odisha investors meet in Bengaluru on August 26.
With the policy, Odisha is aiming to set up at least 1,000 startups in the next five years. “The policy targets setting up at least 1,000 startups in the next five years attracting substantial venture and angel capital to the state with sizable attractive employment opportunity for the educated youths,” chief secretary Aditya Prasad Padhi said. In addition to participating in the private-state specific funds for startups, the government also plans to make a budgetary provision of Rs 25 crore to encourage startups to set their base in the state.
Additionally, the state government confidently boast to become among the top-three startup hubs in India by the year 2020. nNotably, Odisha currently stands nowhere in Top 7 cities for Startups in India.
Under the policy, universities and colleges are eligible for one-time capital grant up to Rs 1 crore to set up incubation facilities in their campuses to help students to learn about startups. Besides, government would provide reimbursement up to Rs 1 lakh per year for three years to institutions, incubators and industry for proving internet, electricity and mentoring services to startups.
“For each successful startup, the approved incubators will be eligible for a performance capital grant of Rs 5 lakh,” Padhi added in a statement.
Besides, reimbursement up to Rs 1 lakh per year for three years will be provided to institutions, incubators, and industries for providing free internet, free electricity, and mentoring services.