MP’s startup policy to be launched on May 13; Here are some key takeaways for startups

Indore’s 700 startups to benefit from Madhya Pradesh’s very own startup policy
MP’s startup policy to be launched on May 13; Here are some key takeaways for startups

Madhya Pradesh’s startup policy will be launched in Indore’s Brilliant Covention Centre on May 13. With this the Madhya Pradesh will become the first state to launch such a policy in the country. The policy is being called ‘MP Incubation and Startup Policy’. Indore is home to about 700 startups and has place among top 10 cities for startups in the country. It is only appropriate that the launch is hosted by the city. The policy will be launched in the virtual presence of the Prime Minister.

Indore’s startup ecosystem fit for rapid growth

According to officials, the startup ecosystem in the city is developing rapidly. The number of startups popping up in the city has almost tripled since 2019. There were only about 250 startup companies in Indore in the year 2019. Out of the 700 companies currently operating, 300 belong to the IT sector. This increase in IT companies has been experienced during the pandemic. Apart from that, round the clock, food and restaurant services have also initiated in Indore.

Shedding some light on the EV infra development in Madhya Pradesh, the Pithampur industrial area in Indore has seen the emergence of over 3 e-vehicle manufacturing startups recently.

On top of that, there are about 100 companies that are valued at more than ₹10 crores in investments. A good number of companies also have a turnover of more than ₹1000 crores while 2 startups have a funding of more than ₹6000 crores.

All the startups in Indore together employ more than 10 thousand people directly and indirectly. It is expected that with the new policy in place, Indore will soon make it to the top 5 cities with favourable startup ecosystem.

Here is how the policy will help startups

Madhya Pradesh’s startup policy will help the young companies in the following ways:

  1. Support on received investment - A startup that has received funds from a SEBI recognised financial body will get an assistance of 15% on the first recieved investment with a maximum limit of ₹15 lakhs. During the start-up's life, this assistance will be provided at a maximum rate of 15% for each investment received over 4 stages.

  2. Extra support for women entrepreneurs - Women owned startups will get an extra assistance of 20%.

  3. Support for events - Organising startup related events and programmes will become easier. Startups will receive ₹5 lakhs for each event given that the cost of organising such events does not exceed ₹20 lakhs per year.

  4. Electricity on discounted rates - Startups will be charged only ₹5 per unit for 3 years from getting a new electrical connection.

  5. Assistance to get patents - ₹5 lakhs will be provided to have patents issued given that they are for companies in the state.

  6. Incubation upgradation assistance - One-time assistance of ₹5 lakh for the up-gradation of Incubator, but to avail this facility, each incubator will have to increase its existing seat capacity by an additional 20%. This facility will be available only once in the entire life of the incubator.

  7. Lease rental assistance - 50% of the monthly rent paid for leased work space to the startup subject to a maximum of ₹5000 per month lease rental assistance for three years.

  8. Training expense reimbursement - In view of the requirement of technical and skilled employees for the startups, the assistance of reimbursement of expenditure for skill development and training will be given to a maximum of 25 employees for three years.

  9. Employment generation grant - All the new employees hired in a product based startup in the first three years of the company will be eligible to get an assistance of ₹5000 per month. The assistance will be provided to a maximum of 25 employees for 5 years only.

If you happen to be in Madhya Pradesh with a startup idea, now is the time to go through with it.

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