Government of India infusing Rs 200 crore in start-up India

The Government of India in the drive to double the numbers of incubators, is planning to infuse Rs 200 crores to in the Start-up India initiative.

Science and Technology Secretary, Ashutosh Sharma informed that:

• 100 new incubators will be set up across the length and breadth of the nation.
• Government aims to duplicate the numbers in next 4 years time frame under the NIDHI programme to support Start-ups.
• Five locations have been shortlisted to build supercomputers for intensive research and development under the National Supercomputing Mission. A total of 4,500 crores is allocated to establish 50 such units in next seven years.These 5 places are:
  • Bangalore: Indian Institute of Science
  • West Bengal: Indian Institutes of Technology
  • Maharashtra: International Institute of Information Technology
  • Uttar Pradesh: Indian Institutes of Technology
  • Delhi: Jawaharlal Nehru University

What is an Incubator?

Incubators are Startup’s godfather. They incubate the startup during its nascent stage.

They help nurture entrepreneurs for smooth functioning, by providing infrastructure, seed funding, training, guidance and mentoring.

Such Incubators are usually entities be it private or public with a non-profit motive.
 

Who can Apply?

Any separate legal entity incorporated in India in the form of any of the following:

• Section 8 Company
• Society
• Private Limited Company
• Public Limited Company
• Limited Liability Partnership

Also, such an applicant should be recognized as a Start-up in consonance with the G.S.R. notification 180(E), i.e. definition of a ‘Start-up’.

Moreover, certain criteria need to be fulfilled to qualify as an Incubator:

• Minimum Years of Establishment
  A minimum of 2 years of existence or a Sanction Letter from Central or State Government.
   
• Minimum Incubatees Enrolled or Graduated
  A minimum of 20 incubatees currently enrolled or graduated; or a minimum of 5 incubatees in case of grant of a Sanction Letter.
   
• Infrastructure Availablity
  A minimum of 5000 square feet Carpet area should be available.
   
• Engagement Period
  A minimum 3 months of personal and virtual interaction should be there between incubates and the members.
   

On approval of the application to become an incubator, a certificate of recognition is granted for a definite period of two years.