Incorporation of Incubators - Business Entrepreneurship

SET UP OR SUPPORT INCUBATORS IN THE STATE

Under the Atal Innovation Mission, the Government is setting up Atal Incubation Centres (AICs) in public and private sector as well as scaling up Established Incubation Centres (EICs). 13 AICs have been approved with a grant of INR 10 crore each. A grant-in-aid of INR 10 crore is also being provided to 6 EICs.

With the goal of promoting innovation and entrepreneurship, the State government has collaborated with premier institutes like IIT Kanpur, IIT BHU, IIM Lucknow (Noida), KNIT Sultanpur to establish Incubators. The country’s biggest Incubator is envisaged to be established in Uttar Pradesh.

State Government promotes establishment of Incubators across Uttar Pradesh. It is envisaged that every district in Uttar Pradesh shall have an Incubator. Host Institutes like Government and Private Technical, Management, R&D institutes, organizations / non-profit organization/ corporate / industry association or in PPP mode are encouraged to establish Incubators or Accelerators in Uttar Pradesh.

Incentives for incubators

a) Infrastructure

Host Institutes are provided capital grant of max 50% for IT infrastructure setup, subject to maximum of INR 25 lakhs

Eligibility Criteria: Universities/education institutions, Incubation Centre/PSUs/R&D Institutions/Private and other establishments will be eligible as an institution to support and mentor to innovators as approved by Committee.

b) Operational Allowance

The selected incubators to get the financial support up to the tune of 5 Lacs per year for 5 years covering the deficit of the operational expenditure of Incubators

Eligibility Criteria: New incubators run by the State Government/Semi-Government institutes/ agency/ organizations, along with existing incubators which are approved by DST/GOI.

c) Mentoring Assistance

Selected Incubators are required to appoint minimum 2 mentors (each from Academia from reputed institute & prominent Industry person) to be paid on honorary basis up to INR 2 Lacs per Annum

Eligibility Criteria: New incubators run by the State Government/Semi-Government institutes/ agency/ organizations, along with existing incubators which are approved by DST/GOI

The Govt. encourages establishment of incubators in the existing institutions, such as academic/technical universities (HPU Shimla, CSK HPKV Palampur, Dr. YS Parmar University of Forestry and Horticulture Nauni, IHBT Palampur, etc.), engineering institutions (NITs-IITs), technology centers (Tool room), IIM Paonta Sahib, etc. for help and promote startups and new industries in the State.

Efforts are made to set up incubators in the established private sector in cases where expertise is not available in the Govt. sector, specific thematic parks of industries Dept., other recognized R & D/Technical Institutes/Centre, Development Institutes empaneled by DPIIT.

Government of Himachal has approved 7 academic institutes to setup incubators across various sectors including IT, Engineering, Food processing, Biotechnology, Agriculture, e-commerce etc.

Incentives for incubators

a. Setup Grant

Financial assistance are provided up to a maximum of Rs. 30 lakh per incubator per year up to a period of three years. Financial assistance will be provided to selected institutions for setting up the incubator and other activities.

Eligibility Criteria: Host Institutes (HIs) are reputed technology, management and R & D institutes of the state and other institutions and organizations focused on entrepreneurial development and promotion to set up Incubators to galvanize the startup ecosystems in the State.

Application Procedure: The interested institution will submit its proposal to the Director of Industries in a prescribed format who will further put it before the Executive Committee of the Scheme for consideration and approval.

b. Recurring expense grant

• Incubators are entitled for a grant of maximum Rs. 10 lakhs for meeting the recurring expenditure actually incurred as per the details mentioned below. This grant would be based on the performance of the incubator.
• Grants for supporting operational expenses in the incubator e.g. Salaries of Regional Coordinators, mentoring programs, networking meetings, conducting Hackathons, etc. - Up to Rs. 2 Lakhs.
• Annual Financial support for projects for Training and Capacity Building for Faculty and students. - Up to Rs. 2 Lakhs.
• Exposure to Support and Network Programs conducted by the departments concerned. - Up to Rs. 1 Lakh.
• Opportunity to visit National/ International startup destinations. - Up to Rs. 2 Lakhs

Internship Stipends - Up to Rs. 2 Lakhs

Miscellaneous other expenses & Administrative +charges - Up to Rs. 1 Lakh.

Eligibility Criteria: Host Institutes (HIs) are reputed technology, management and R & D institutes of the State and other institutions and organizations focused on entrepreneurial development and promotion to set up Incubators to galvanize the startup ecosystems in the State.

Application Procedure: The interested institution will submit its proposal to the Director of Industries in a prescribed format who will further put it before the Executive Committee of the Scheme for consideration and approval.

c. Rental reimbursements

In case of Govt. owned building is leased to an incubator, no lease rent or O & M charges are levied for a period of five years or until the incubator is self-sustainable, whichever is earlier. In case where private premises are taken on lease/rent basis, a rental reimbursement @ Rs. 5 per sq.ft. per month or 25% of the actual rent paid, whichever is less, are reimbursed for a period of 3 years. This shall be limited to the incubation space only.

Eligibility Criteria: Host Institutes (HIs) are reputed technology, management and R & D institutes of the state and other institutions and organizations focused on entrepreneurial development and promotion to set up Incubators to galvanize the startup ecosystems in the State.

Application Procedure: The interested institution will submit its proposal to the Director of Industries in a prescribed format who will further put it before the Executive Committee of the Scheme for consideration and approval.

d. Investment Subsidy

In case of incubator set up in private sector, an investment subsidy of 20% of the value of capital expenditure, other than land building, shall be provided to incubation projects that enter into an MoU with the state within 2 years of the notification of this scheme/policy. This subsidy shall be limited to a maximum of Rs. 50 lakh.

Eligibility Criteria: Host Institutes (HIs) are reputed technology, management and R & D institutes of the state and other institutions and organizations focused on entrepreneurial development and promotion to set up Incubators to galvanize the startup ecosystems in the State.

Application Procedure: The interested institution will submit its proposal to the Director of Industries in a prescribed format who will further put it before the Executive Committee of the Scheme for consideration and approval.

e. Stamp Duty/Registration fee Reimbursement

Incubators and Host Institutes shall be eligible for 50% reimbursement of the Stamp Duty and Registration Fee paid on sale/lease.

Eligibility Criteria: Host Institutes (HIs) are reputed technology, management and R & D institutes of the state and other institutions and organizations focused on entrepreneurial development and promotion to set up Incubators to galvanize the startup ecosystems in the State.

Application Procedure: The interested institution will submit its proposal to the Director of Industries in a prescribed format who will further put it before the Executive Committee of the Scheme for consideration and approval.

f. Land Allotment

The private party interested to set up incubator in the state shall be eligible for allotment of plot in industrial area for setting up the incubation facility as per the prevailing policy.

Eligibility Criteria: Host Institutes (HIs) are reputed technology, management and R & D institutes of the state and other institutions and organizations focused on entrepreneurial development and promotion to set up Incubators to galvanize the startup ecosystems in the State.

Application Procedure: The interested institution will submit its proposal to the Director of Industries in a prescribed format who will further put it before the Executive Committee of the Scheme for consideration and approval.

Government of Gujarat has supported the development of iCreate - a technology business incubator working with a vision to create a large quantity of quality entrepreneurs. Another such incubator, Centre for Innovation Incubation and Entrepreneurship (CIIE) at IIM Ahmedabad is actively supported by the State Government.

iCreate

International Centre for Entrepreneurship and Technology - iCreate provides incubation to slightly mature projects. The period of incubation can be up to two years, and iCreate has dedicated a budget of up to Rs 250 lakhs.

iCreate offers labs and workshops to finalize offerings, help Startups take their product/services to live customers to make it market ready, and also mentor them so that they can build a growth organization and start earning serious revenue.

Eligibility

• Private Ltd. Company (or ready to be one) >1 co-founder in operation for 1 to 3 years
• Project/Venture must have - component of technology, innovation, potential for global market
• Should have attained some customer/market validation
• Willing to be physically incubated at Ahmedabad. However, can spin off/ locate anywhere post incubation

CIIE - IIM Ahmedabad

CIIE is a collective of interventions in the space of innovation-driven entrepreneurship in India. It has its genesis at the Centre for Innovation Incubation and Entrepreneurship ("Centre"), IIM Ahmedabad - an academic center focused on research in innovation and entrepreneurship. CIIE continues to support the research and learning undertaken by the Centre.

It follows a virtual incubation model & it is not necessary for the start-up to be stationed in Ahmedabad. Over the last 5 years, CIIE has supported around 60 alums with a fellowship and another 35 students with an idea validation summer internship.

Incubation Area:- ALLOCATE SEATS TO STARTUPS FROM SPECIFIC FIELDS OR DOMAINS

Government of Telangana (GoT) has launched a Technology incubation centre (T-hub) at IIIT-Hyderabad campus in Hyderabad. T-Hub aims to promote entrepreneurship in the State and has state-of-the-art 70,000 sq. ft. building with the name Catalyst, which operates on a PPP model between the GoT, IIIT-H, ISB & NALSAR and key private sector leaders.

It supports and promotes technological innovations occurring in the Hyderabad Startup ecosystem.

Catalyst also hosts regular talks, networking events, workshops, mentoring sessions and more for the benefit of all its members. It provides early access to new launches, discounts on a host of professional services and special deals for events across the country.

Eligibility: Early-stage Startups with a minimum viable product (MVP) and with some traction in the market can apply.

Benefits

Catalyst brings together partnerships from different verticals to help Startups shorten the sprint towards their goal. From incubators and accelerators to VCs and large scale investors, incubator ecosystem comprises of the right mix of individuals and organizations that can help Startup scale in a competitive environment.

It also supports virtual Incubation which suits entrepreneurs who need the services of an incubator but still want to maintain their own offices while holding on to geographical advantages and strategies. Virtual Membership is location independent by design. This model

One of the program run by catalyst is Lab32

It is a six month long comprehensive incubation program, tailor-made for early-stage tech product Startups. Through a series of six different playbooks, Lab32 provides guidance of immense value to the Startups, supported by an outstanding community of top-notch corporates, mentors, partners and investors. Also, it provides several opportunities to network with renowned industrialists with regular interventions and networking sessions.

Government of Andhra Pradesh has launched one of the first pilot incubation facility to promote technology Start-ups in the coastal city of Visakhapatnam. The State Government has constructed Sunrise Incubation Tower, an incubation tower of 50,000 sq. at Vizag to promote Start-ups and innovation culture. The incubator operates on `Bootup-Startup-Scaleup’ model and lends focus on first generation technocrat entrepreneurs.

Sunrise Startup Factory is an inclusive state-of-the-art Co-Working Space focused on providing mature startups with an ideal atmosphere to enhance productivity and cultivating collaboration. Co-Working Spaces are located in all 4 Incubation Centers at Vizag, Kakinada, Anantapur, Tirupati and will be operational in Amaravati soon. These spaces provide a culturally diverse community that is perfect for entrepreneurs and startups, to innovate and create strong networking opportunities.

World class amenities and support mentioned below, can be availed for free here:

• High-speed Wi-Fi
• Power outlets
• Power backup
• Meeting Rooms
• Digital Infrastructure
• Company registration/document support

The government has set up following incubators:

GOK NASSCOM 10000 STARTUPS WAREHOUSE: GoK-NASSCOM Startup warehouse is a subsidised co-working space spread across 30,000 sq ft. This facility will help create a very robust ecosystem to support early-stage companies by getting angel investors, VCs and enterprises to play a more active role in Bengaluru and getting more start-ups to succeed.

GOK INCUBATOR FOR TECH START-UPS(GIFTS): The Department of IT, BT and S&T, Govt of Karnataka, has identified a private partner, M/s Springboard Solution Pvt. Ltd as Program Manager (PM) to operate its first incubator operated on a truly PPP mode. This will help all start-ups in AI and deep learning.

GOK-MOBILE 10X START-UP HUB: This hub is set up as a Centre for Apps Excellence for innovation and entrepreneurship in app development. It provides early-stage app Startups and developers with highly affordable co-working space, training centre, testing lab and design centre conveniently located in the city.

BANGALORE BIO INNOVATION: The Bangalore Bio innovation Centre (BBC) is a first-of-its-kind and the largest bio-incubation centre in the country and is an initiative of Department of IT, BT and S&T, Government of Karnataka. Nestled between the academic zone comprising Institute of Bioinformatics and Applied Biotechnology (IBAB), Centre for Human Genetics (CHG) and bio-industrial zone, the centre aspires to create a seamless value chain connect from ideas to start-ups and ventures.

With a total funding of 56 crore in building, labs and instrumentation, the facility presently has 50,000 sq. ft. of state-of-the-art incubation and instrumentation equipment. Sixteen top-notch BT start-ups selected through a rigorous selection process are benefiting from the infrastructure.

Karnataka is also setting up a centre of excellence for Big Data, AI, Block chain, and Cybersecurity. The state is clearly poised to be a leader in biotechnology and nano-science.

Government of Chhattisgarh has allocated 30,000 sq. ft. of incubation space in City Centre Mall at Pandri which is to be expanded to 40,000 sq. ft. It has about 300 seats and about 30 meeting spaces, conference rooms, auditorium, etc. The incubation centre will also have: Prototyping and development labs, Fablab, IOT lab, Multimedia lab.

Business incubator also help start-ups and already existing companies to develop by providing services such as fund support, management, mentorship, co-working space, technological assistance or everything that is required for a business to grow.

Incubator has a well-equipped FABLAB, with a separate access. The lab is open to the community at large to enable them to solve unique problems in style. Also, it has top of the line equipment and machines for CAD/CAM/CAE, NC machining, 3-D printing, injection moulding, laser cutting, PCB layout and so on.

Subsidized Incubation for Startups from Specified Domains

GOK NASSCOM 10000 STARTUPS WAREHOUSE::- Government of Karnataka (GoK) - NASSCOM Startup warehouse provides a subsidized co-working space to support the early stage companies. The subsidised seat rentals of Rs. 3500 per month. The facility is now expanded with Center of Excellence for innovation and entrepreneurship including Hackcelerator, Center of Excellence for Design- an integrated design work space and a Wearables Lab.

Facilities

• IOT Lab
• Device Lab
• Event Space
• H-accelerator Space
• 18 Conference Rooms
• Pantry

Criteria for Selection

• Innovative Technology Company with high potential
• Less than four years of operation
• Less than Rs. 50 cr of Revenue
• 50% of Staff being in Karnataka

GOK-MOBILE 10X START-UP HUB

GOK-Mobile 10X Start-up Hub is an initiative of Government of Karnataka in partnership with Internet and Mobile Association of India (IAMAI). Hub is set up as Centre for Apps Excellence for innovation and entrepreneurship in Apps development.

It provides early stage Apps Startups and developers with highly affordable co-working space, training centre, testing lab and design centre conveniently located in the center of the city.

As of now the centre has housed about 25 Startup with no charges to the space and facility offered.

Facilities

• Capacity to house and support 70 Plus Mobile Developers.
• Support System Divided into Zones
• Testing Zone
• Monetization Zone
• Design Zone
• Play Zone
• Also has a Video Conference Room and Common Meeting Room

Criteria for Selection

• Innovative Mobile Application Technology Company with high potential
• Less than four years of operation
• Less than Rs. 50 cr of Revenue
• 50% of Staff being in Karnataka

Start-ups running in the incubators can avail following incentives

a) Interest Subsidy

Eligible Startups would be offered interest subsidy of 8% per annum for three years on the rate of interest paid on loans obtained from scheduled banks/ financial institutions subject to a limit of INR 4 Lakhs per annum.

b) Lease Rental Subsidy

Reimbursement of 25% of the lease rental subsidy to Startup units established in the State operating from incubators would be eligible for three years with a limit of INR 3 Lakhs per annum from the state of rent payment to the incubator.

c) Patent/ Quality Promotion Subsidy

Cost reimbursement for the Patent/ Quality certification per unit up to a maximum of INR 2 Lakhs for Domestic and INR 5 Lakhs for International Patent/ Quality Certification upon successfully obtaining them.

Within the policy period of 5 years, 2 Patent/ Quality Certification in each domestic and international category would be considered.

Government of Goa has provisioned to provide reimbursement subject to a maximum limit of Rs. 1,00,000 per quarter for cost towards internet connectivity, software license fees, and cloud services fee to start-ups that operate from their own premises or rented premises, and do not use the Government developed facilities. Funds for the same would be provisioned from the Working Capital Fund.

Government of Goa has provisioned to provide lease rental subsidy of up to Rs. 20 / square feet per month, to start-ups for a period of two years. This is applicable only for local start-ups. This incentive is subject to a cap of Rs. 3 lacs per annum. Funds for the same would be provisioned from the Working Capital Fund.