CHANDIARH: The Haryana cabinet chaired by CM Manohar Lal Khattar on Monday approved a new Haryana State Startup Policy 2022 Formulated by the Department of Information Technology, Electronics and Communication, Haryana.
Through this policy, state government aims to boost and nurture the vibrant startup ecosystem in Haryana to stimulate independent thinking and innovative ideas and help budding startups at different stages of their entrepreneurial journey.
Haryana government claims to have followed a proactive approach to facilitate ease of doing business for startups in the state. State has carried out extensive policy interventions to position Haryana as a pre-eminent investment destination.
At least 14 unicorn startups (with at least USD 1 billion valuation) out of 101 unicorn startups of India are based out of Haryana. Government of Haryana is keen to harness the potential of such young entrepreneurs by providing them with a strong policy ecosystem, robust infrastructure, and liberalized regulatory norms.
“Now, any startup entity recognized by the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, up to a period of 10 years from the date of its incorporation/ registration and with an annual turnover not exceeding Rs 100 crore And being based out in Haryana will make it eligible for availing major fiscal and non-fiscal benefits under the new policy,” said CM Manohar Lal Khattar.
In addition, other startups recognized by the DPIIT having their registered office anywhere in the country/even outside Haryana and till the time they are working through government owned or supported incubators operational in Haryana will also be eligible to avail only non-fiscal benefits under the new policy, he added.
These benefits include subsidized incubation space, liberalized criteria for participation in Haryana government tenders, participation in mentorship events, and other startup specific programs. This part of the policy will incentivize such startups to ultimately migrate to Haryana to take full benefits under the policy.
There are 3910 Haryana-based startups as of June 15, 2022 stand recognized by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India. A Startup Haryana Cell is being established in the Department of Information Technology, Electronics and Communication to oversee the implementation and other institutional activities of this revised policy.
It is expected that at least 5,000 new startups would be established in Haryana over the next 05 years (within policy period) providing direct & indirect employment to 75,000 persons.
A few of the key Incentives/benefits under the new startup policy are as follows:
Fiscal Incentives to Startups:
— Net SGST Reimbursement: 50% Net SGST reimbursement for 7 years
— Lease rental subsidy: Reimbursement of lease rental subsidy for startups up to Rs 5 lakh.
— Seed Funding for Startups: Seed grant up to Rs 10 lakh per startup for 100 startups in ‘a’ category blocks, 250 startups in ‘B’ category blocks, 750 startups in ‘C’ category blocks, and 1,000 startups in ‘D’ ‘ category blocks.
— Patent Cost: Financial support to startups by reimbursement of 100% of the actual expenses with a maximum of Rs 25 lakh for domestic and international patent registrations.
— Reimbursement for Cloud Storage: 75% reimbursement of expenses incurred for cloud computing/ storage on Haryana based data centers up to Rs 2.5 lakh per startup per annum for a period of 5 years.
–Assistance in Acceleration Programs: Support startups up to Rs 2.5 lakh to attend national acceleration programs and Rs 5 lakh for international acceleration programs.
Fiscal Incentives to Incubators:
— Capital Subsidy: Capital grant of up to Rs 2 crore to government host institutes and up to Rs 1 crore to private host institutes for setting up of incubators.
— Mentoring Assistance: Financial support of up to Rs 2.5 lakh per incubator for mentoring assistance will be given to government owned/ supported/ sponsored incubators up to a maximum of Rs 25 lakh per annum.
— Reimbursement on Rental Charge: 50% reimbursement of lease rent paid by incubators for operations on a rent basis for a period of 3 years, up to a maximum of Rs 5 lakh per annum.
— Stamp Duty & Registration Reimbursement: 100% reimbursement of stamp duty and registration fees on purchase/ lease of land/ office space/ IT building.
— Assistance for participating in Fair/ Exhibition: Industry associations/ incubators/ government departments leading a delegation of startups to national and international fair/ exhibition or for organizing such fair/exhibition/seminars shall be provided financial assistance on actual basis subject to maximum Rs 50 lakh.
— Startup Competition Assistance: Incubators established in eligible institutes of national importance, will get assistance up to the limit of Rs 20 lakh per event for organizing startup competition fest.
— Electricity Duty Exemption: Incubators will be eligible for 100% exemption for 12 years in ‘D’ category blocks, 10 years in ‘C’ category blocks, and 7 years in ‘B’ category blocks.
The state government has also added several new Incentives in the new Haryana State Startup Policy 2022 to provide additional benefits to the Startup Ecosystem Stakeholders, some of which include:
i) New Startups warehouse / Innovation campus: Financial support of Rs 4 crore for capital expenditure for creating IT Startups warehouse and Rs 1 crore yearly for 3 years of recurring expenditure support at Panchkula, Hissar and other potential locations.
ii) New Mobile Application Development Centre: Financial support of Rs 4 crore for capital expenditure for creating Mobile Apps Development Center and yearly support of Rs 1 crore for three years at Panchkula, Hissar & other potential locations in Block ‘C’ and ‘D’ .
iii) Incubation Centers in Government Universities and other government institutions: A financial assistance for creating Incubation Centers to the extent of Rs 50 lakh per Incubator and Rs 20 lakh yearly for recurring expenditure for 5 years.
A financial assistance of up to Rs 10 lakh per incubator for existing incubators in Universities and other Government Institutions for upgrading their facilities.
— Earlier, the startups were eligible to receive benefits at an incubation center for a period of one year only. In the new policy, such startups can avail benefits like space, plug and play facilities at subsidized rates etc. for three years.
— The new policy now further facilitates the startups by allowing the filing of self-certification under 14 different laws instead of 8 different laws earlier. This would enhance the ease of doing business for these Startups and reduce regulatory cholesterol / burden.
The state government will also organize specific Entrepreneurship Development Programs across 22 districts of Haryana every six months for sensitization and awareness among the aspiring innovators/entrepreneurs and school/college students about their growth opportunities and potential in the startup ecosystem under the new policy.