Madhya Pradesh is the first state to launch its own start-up policy- the MP Incubation and Startup Policy. Capital city Indore is home to around 700 startups and has been placed among the top 10 cities hosting start-ups across the country.
The policy which was launched virtually by the PM of India on May 13th would help the young companies in the following ways:
- Support on investment received– The startups which have received funds from SEBI recognized financial body will be provided with an assistance of 15% on the first received investment with a maximum limit of Rs 15 lakh.
- Extra support for women entrepreneurs– Women-owned start-ups will get extra assistance of 20%.
- Support for events– The SS Chauhan administration will help the startups organize events and programs. Each start-up will receive Rs 5 lakhs for each event given the cost of the event does not exceed Rs 20 Lakhs per year.
- Discount on electricity– For the first three years after getting a new connection the startups will be charged only Rs 5 per unit consumption.
- Assistant for patents– Startups will also be given financial assistance for Rs 5 lakhs to acquire patents.
- Incubation up-gradation assistance– One-time assistance of Rs 5 lakh will also be furnished to a start-up provided each incubator will have to increase its existing capacity by an additional 20%.
- Lease rental assistance– A three-year duration assistance for those start-ups on leaser work space has been postulated. Around 50% of the monthly rent paid will be given for maximum rent of Rs 5000.
- Training expense reimbursement- The govt would also reimburse the expenditure borne by the start-up training purpose. The scheme will be valid for companies that train around 25 employees for three years.
- Employment Generation grant- All new employees hired in a product-based start-up in the first three years of the start-up’s life are eligible for an assistance of Rs 5000 per month.