PM Modi launched Madhya Pradesh Startup Policy

Tags: Economics/Business State News

Prime Minister Narendra Modi launched Madhya Pradesh Startup Policy through video conferencing.

• Modi addresses the startup community during the Madhya Pradesh Startup Conclave being held in Indore.

• The Prime Minister also launched the Madhya Pradesh Startup portal, which will facilitate and help promote the startup ecosystem. 

• The Madhya Pradesh Startup Conclave was attended by various pillars of the startup ecosystem including policy makers, innovators, entrepreneurs, academicians, investors, consultants and other stakeholders from government and private sector.

• Objective of Policy 

• Strengthen the startup culture by nurturing entrepreneurial skills

• Encourage setting up of new technological business incubation centres

• Encourage and inspire youth to develop innovative ideas 

• Promote entrepreneurship activities among the youth of the state, thereby enabling sustainable and inclusive socioeconomic development across the state

• Promote and develop employment opportunities for the youth within the state

• Highlight of the policy

• An entity shall be deemed to be a Startup for a period of five years from the date of incorporation/registration, If it is incorporated as a Private Limited Company or is registered in India as a Partnership Firm or Limited Liability Partnership.

• Turnover of the entity for any of the financial years, since incorporation, should not exceed INR 25 crore.

• The entity must work towards innovation, development or improvement of products or processes or services.

• The state offers special incentives for women-led startups in the form of interest subsidy of 8% on loans up to three years, not exceeding INR 5 lakh. 

• The state provides incentives for lease subsidy up to INR 5 lakh for women-led startups.

• Startup Ecosystem in Madhya Pradesh

• The state's smart cities are serving as platforms to launch incubators and coworking spaces such as Jabalpur Incubation Centre in India.

• MP Venture Finance Limited (MPVFL) has been set up to provide access to venture capital funds to startups and has received approval from the Securities and Exchange Board of India (SEBI).

• Startup Incubator Cell is managed by the state nodal officer for startups.

• There are 1,937 start-ups recognized by the central government in Madhya Pradesh and 45 percent of them are run by women.

• About 31 percent startups in the state are located in Bhopal and 44 percent in Indore.