Odisha cabinet approves startup policy

New Delhi: The state cabinet headed by chief minister Naveen Patnaik on Tuesday approved the Odisha startup policy to promote entrepreneurship among the youth.

The chief minister would unveil the policy at the Odisha investors meet in Bengaluru on August 26.

"The policy targets setting up of at least 1000 startups within a period of next five years. It also envisages Odisha to be amongst the top three startup hubs by 2020," said chief secretary AP Padhi following the cabinet meeting.

The state government would come up with a startup capital infrastructure fund up to Rs 25 crore to support the startup units and young entrepreneurs. The government would also participate in the private state specific funding system to help the startups to grow.

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 said.

To ensure sustainability of startups, the state government would provide Rs 10,000 per month for a period of one year to registered startups who would be eligible for getting startup fund from the state government, official sources said.

For innovation ideas, the state government would reimburse the marketing/publicity assistance up to Rs 5 lakh. The policy has provision for need-based assistance for successful startups.

Initially, the policy would be implemented for a period of five years and the government constitutes a committee led by the chief secretary to monitor effective implementation of the policy.

States like Telangana, Karnataka, Uttar Pradesh, Gujarat and Rajasthan are amongst the other states that have already announced their state specific startup policies.

On August 26, the chief minister would travel to Bengaluru to attend the investors meet which is being organized to attract investment in information technology, IT-enabled services, bio-technology and pharmacy.

Besides the startup policy, Naveen would also unveil the master plan for the Infovelly-II, the upcoming IT-hub proposed near the city. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.