Support and Assistance to Start-ups and Incubators –

Institutional, marketing, financial and business facilitation are the pillars to develop the Start-ups and Incubators ecosystem and provide them with the necessary support/support. The state government is determined to make the state an investment destination for Start-ups, especially Product-based start-ups, through these pillars.

1.                Institutional Support -

Establishment of Madhya Pradesh Start-up Center –

Start-up center with subject experts under the patronage and aegis of Madhya Pradesh Laghu Udyog Nigam (MPLUN) for facilitation and necessary support to start-ups in the state, providing an institutional platform and providing them ample opportunities in global and local market/events/workshops etc. will be established. The center will act as a dedicated agency for promoting, strengthening and facilitating the start-up ecosystem in the state.

• Objectives and Scope of Start-up Center :-

             i.         Guiding and assisting Start-ups of the state.

            ii.         Coordinating/continuous liaison with various departments of the State Government for necessary approvals for smooth functioning of the ecosystem.

          iii.         To resolve complaints relating to any approval/promotion and any other issues in the prescribed manner.

          iv.         It can review the start-up ecosystem of the state and make necessary recommendations to the state government.

           v.         The center aims to make Madhya Pradesh a self-reliant start-up and innovation hub by promoting an innovation driven start-up ecosystem with the objective of creating and supporting entrepreneurship, innovation and start-up entrepreneurship in the state.

          vi.         The center will facilitate to pitch/ showcase their services/products across various investment, market and other related platforms to encourage startup/innovative entrepreneurship. It will also help in providing mentorship support and raise capital/other financing from required investors from angel investors/corporate investors/other funding agencies registered with SEBI/RBI/other competent authorities.

        vii.         Preparation of master database.

       viii.         To provide guidance and support to the start-ups in resolving the problems faced by them in the context of company and tax laws.

          ix.         Organizing Boot Camps, Challenge Competitions, Road Shows and Investor Meets/Workshops in and outside the State.

           x.         Will act as a single window agency for start-ups and incubators.

          xi.         Pre-market study and evaluation.

·     Human resource arrangement for the proposed center –

Ø  Executive Head – 1

Ø  Subject Experts - 3 (one each for Legal Affairs , Marketing & Financial and Project Management)

Ø  Associate Executive/Staff – 10

2.       Academic Support & Participation -

In order to encourage start-ups, especially product-based start-ups and innovations in the state and to provide necessary technical and guidance support, they will get necessary support and participation from national and state level technical and management institutes/universities and other academic institutions. Madhya Pradesh Start-up Center will seek as much cooperation as possible from MSME Technology Center, Indore, and Bhopal, National Institute of Design Bhopal, IISER Bhopal, IIITDM Jabalpur etc, to provide the necessary high-tech machinery for the testing, research and development, of the products envisioned by the startups.

Entrepreneurship development courses will be included in the curriculum in secondary, higher secondary and higher educational institutions. Brainstorming and related workshops will be organized regularly in these institutes. Internship will be encouraged to attract students towards entrepreneurship.

In order to make the students aware of the financial and non-financial facilities being provided by the government for starting start-ups, workshops for mutual discussion will be organized twice a year in collaboration with Start-up India.

1.4        Ease of Doing Business (EODB) –

For smooth operation of the start-ups and incubators of the state, they have to be facilitated to meet various regulatory requirements. Arrangement of post facto approval will be ensured for necessary permission/consent. Deemed Approval will also be given as per the provisions made in the Madhya Pradesh Public Service Guarantee Act, 2010 (as amended, 2020).

1.5        Marketing & Liquidity Support/Assistance -

Provisions will be made in the Madhya Pradesh Store Purchase and Service Procurement Rules, 2015 (as amended from time to time) for institutional marketing assistance to start-ups in the state as follows –

Ø  Exemption from the conditions/parameters related to experience and turnover will be given to the start-up enterprises participating in the government tender up to Rs.1 crore. For government tender above Rs 1 crore, the concerned department can make provision for procurement of services/products separately from startups if it deems fit.

Ø  Proof of Concept for Start-ups will be accepted in the context of Tenders (NITs) / Request for Proposal (RFP) for service acquisition above Rs.1 Crore.

Ø  Provided that there shall be no change in the conditions of quality of service or product and other essential qualifications under the aforesaid provision.

Ø  All the Tenders (NIT) / Request for Proposal (RFP) of the State Government will be exempted from Security/ Earnest Money Deposit (EMD).

Ø  Other -

State government corporations and key departments will be linked to the TReDS Platform (Trade Receivable Discounting System) authorized by the Reserve Bank of India as far as possible, so that the start-ups do not face liquidity crunch.

1.6      Financial Assistance

1.6.1        For Start-ups and incubators established in the state –

Ø   Assistance on investment received - For a start-up that has received funds/investments from a financial institution recognized by SEBI (Security and Exchange Board of India)/RBI, assistance will be given at the rate of 15% maximum upto Rs.15 lakh, of the first investment received. This assistance will be payable at the rate of 15% separately for each of the investments received over a maximum of four stages during the life of the start-up. start-up.

In the above context, assistance of Rs. 5 lakh will be given to the concerned incubators located in Madhya Pradesh.

Ø  Additional 20 percent assistance to Startups set up by Women.

Ø  Event Organizing Assistance – Assistance of Rs. 5 lakh per event to incubators located in Madhya Pradesh for organizing events related to start-ups not exceeding Rs. 20 lakh per annum.

Ø  Incubation Upgradation Assistance - One time assistance of Rs.5 lakhs for the up-gradation of Incubators, but to avail this facility, each Incubator will have to increase its existing seat capacity by an additional 20%.

Ø  Lease Rental Assistance – 50% up to a maximum of Rs. 5000/- per month lease rental assistance for three years.

Ø  Patent Assistance - Maximum assistance of Rs.5 lakh

1.6.2     Special financial assistance and support for product based   start-ups

·        Concurrent License/Consent facility for one year.

·        Facility to use the required machine in MSME Technology Centre, Bhopal and Indore.

·        Training Expenditure Reimbursement – ​​In view of the need of technical and skilled workers to start-ups, the assistance of reimbursement of expenditure for skill development and training will be given to a maximum of 25 employees per new employee Rs 13000 per year for three years. This assistance will be available only to the employees domiciled in Madhya Pradesh.

·        Employment Generation Grant - All the new employees appointed by the employer in the product based start-up unit in the first three years from the date of commencement of commercial production will be eligible to get the benefit of assistance of Rs.5000 per employee per month. The assistance period will be maximum 3 years and will be given to maximum 25 employees only.

·     Exemption on Electricity Duty

·     Concession in Electricity Tariff

·     The benefits of the facilities provided in the MSME Investment Policy, 2021 will be available subject to the conditions.

6.3.3      Financial assistance / non-financial assistance under the State Innovation Challenge –

Special Financial Assistance will be provided to the received and selected concept for redressal of four high-impact economic-social problems of the state. For this, concepts will be invited from all types of institutions (including Start-ups) and they will be circulated to all the concerned departments for their views. The concepts on the recommendation of the departments will be placed before the Screening/Selection and Empowered Committee constituted in this context under the chairmanship of the Chief Secretary. The committee will select four best concepts based on the specificity, merits and demerits of the above concepts and problem-solving ability. For evaluation and monitoring of selected start-ups, a State Level Evaluation and Monitoring Committee will be constituted under the chairmanship of the Principal Secretary of the concerned department. The nature of assistance will be as follows –

·     Grant up to Rs.1 crore, which will be provided in maximum four phases or as decided by the competent committee for this purpose. The selected start-ups will be assessed, monitored and evaluated by the competent committee on the basis of the work done by them.