Annexure - I

Detailed progress made on the 19 Action Points of Startup India Action Plan
(Objective and details have been reproduced as published in the Startup Action Plan.
Progress has been updated as on 31st May 2020)

1. Compliance Regime based on Self-certification

Objective

To reduce the regulatory burden on Startups thereby allowing them to focus on their
core business and keep compliance cost low.

Details
● Regulatory formalities requiring compliance with various labour and environment
laws are time consuming and difficult in nature. Often, new and small firms are
unaware of nuances of the issues and can be subjected to intrusive action by
regulatory agencies. In order to make compliance for Startups friendly and
flexible, simplifications are required in the regulatory regime.
● Accordingly, the process of conducting inspections shall be made more
meaningful and simpler. Startups shall be allowed to self-certify compliance
(through the Startup mobile app) with 9 labour and environment laws (refer
below). In case of the labour laws, no inspections will be conducted for a period
of 3 years. Startups may be inspected on receipt of credible and verifiable
complaint of violation, filed in writing and approved by at least one level senior to
the inspecting officer.
● In case of environment laws, Startups which fall under the ‘white category’ (as
defined by the Central Pollution Control Board (CPCB)) would be able to self-
certify compliance and only random checks would be carried out in such cases.

Progress
Ministry of Environment, Forest & Climate Change (MoEF&CC) has published a list of
36 white category industries. Startups falling under the "White category" would be able
to self-certify compliance in respect of 3 Environment Acts –

1. The Water (Prevention & Control of Pollution)Act, 1974

2. The Water (Prevention & Control of Pollution) Gess (Amendment)Act, 2003
3. The Air (Prevention & Control of Pollution) Act, 1981.

Further, Ministry of Labour and Employment (MoLE) has issued guidelines to State
Governments whereby Startups shall be allowed to self-certify compliance in respect of
6 labour laws. These are effective after concurrence of States/UTs. The Acts are:
 1. The Building and Other Constructions Workers' (Regulation of Employment &
Conditions of Service )Act, 1996
2. The Inter- State Migrant Workmen (Regulation of Employment & Conditions of
Service) Act, 1979
3. The Payment of Gratuity Act, 1972
4. The Contract Labour (Regulation and Abo I ition) Act, 1970
5. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952
6. The Employees' State Insurance Act, 1948.

27 states and UTs have implemented the process of self- certification to startups under
6 labour laws. 9 States (Haryana, Madhya Pradesh, Maharashtra, Rajasthan, Gujarat,
Uttar Pradesh, Punjab, Uttarakhand, and Delhi) have integrated their portals with Shram
Suvidha Portal. Overall, 169 DPIIT recognized Startups have availed the benefits of
self-certification.

2. Startup India Hub

Objective
To create a single point of contact for the entire Startup ecosystem and enable
knowledge exchange and access to funding
Details
Young Indians today have the conviction to venture out on their own and a conducive
ecosystem lets them watch their ideas come to life. In today’s environment we have
more Startups and entrepreneurs than ever before and the movement is at the cusp of a
revolution. However, many Startups do not reach their full potential due to limited
guidance and access.
The Government of India has taken various measures to improve the ease of doing
business and is also building an exciting and enabling environment for these Startups,
with the launch of the “Startup India” movement.
The “Startup India Hub” is a key stakeholder in this vibrant ecosystem and will:
● Work in a hub and spoke model and collaborate with Central & State
governments, Indian and foreign VCs, angel networks, banks, incubators, legal
partners, consultants, universities and R&D institutions
● Assist Startups through their lifecycle with specific focus on important aspects
like obtaining financing, feasibility testing, business structuring advisory,
enhancement of marketing skills, technology commercialization and
management evaluation
● Organize mentorship programs in collaboration with government organizations,
incubation centres, educational institutions and private organizations who aspire
to foster innovation. To all young Indians who have the courage to enter an
environment of risk, the Startup India Hub will be their friend, mentor and guide to
hold their hand and walk with them through this journey.
Progress:
A dedicated Startup Hub team was setup under Invest India. Team members have been
assigned to different states for assisting them in formulating and implementing policies
to facilitate growth of startups. A total of 1,76,654 queries have been addressed through
the Startup India portal and Startup India Twitter seva till 24 th March 2020.
3. Startup India Portal and Mobile App

Objective
To serve as the single platform for Startups for interacting with Government and
Regulatory Institutions for all business needs and information exchange among various
stakeholders
Details
In order to commence operations, Startups require registration with relevant regulatory
authorities. Delays or lack of clarity in registration process may lead to delays in
establishment and operations of Startups, thereby reducing the ability of the business to
get bank loans, employ workers and generate incomes. Enabling registration process in
an easy and timely manner can reduce this burden significantly.
Besides, Startups often suffer from the uncertainty regarding the exact regulatory
requirements to set up its operations. In order to ensure that such information is readily
available, it is intended that a checklist of required licenses covering labour licensing,
environmental clearances etc. be made available. Currently, the Startup ecosystem in
India also lacks formal platform(s) for Startups to connect and collaborate with other
ecosystem partners.
Towards these efforts, the Government shall introduce a Mobile App to provide on-the-
go accessibility for:
● Registering Startups with relevant agencies of the Government. A simple form
shall be made available for the same. The Mobile App shall have backend
integration with Ministry of Corporate Affairs and Registrar of Firms for seamless
information exchange and processing of the registration application
● Tracking the status of the registration application and anytime downloading of the
registration certificate. A digital version of the final registration certificate shall be
made available for downloading through the Mobile App
● Filing for compliances and obtaining information on various clearances/
approvals/ registrations required
● Collaborating with various Startup ecosystem partners. The App shall provide a
collaborative platform with a national network of stakeholders (including venture
funds, incubators, academia, mentors etc.) of the Startup ecosystem to have
discussions towards enhancing and bolstering the ecosystem
● Applying for various schemes being undertaken under the Startup India Action
Plan
The App shall be made available from April 01, 2016 on all leading mobile/ smart
devices’ platforms. The Startup portal shall have similar functionalities (being offered
through the mobile app) using a richer web-based User Interface.
Progress:

Startup India portal and app were launched in April 2016. 4,04,069 users are registered
on the Startup India Portal and Startup India Website had more than 7 million views. A
total of 32,304 Startups have been recognized by the portal till May 31, 2020.

4. Legal Support and Fast-tracking Patent Examination at Lower Costs

Objective
To promote awareness and adoption of IPRs by Startups and facilitate them in
protecting and commercializing the IPRs by providing access to high quality Intellectual
Property services and resources, including fast-track examination of patent applications
and rebate in fees.

Details

Intellectual Property Rights (IPR) are emerging as a strategic business tool for any
business organization to enhance industrial competitiveness. Startups with limited
resources and manpower, can sustain in this highly competitive world only through
continuous growth and development-oriented innovations; for this, it is equally crucial
that they protect their IPRs. The scheme for Startup Intellectual Property Protection
(SIPP) shall facilitate filing of Patents, Trademarks and Designs by innovative Startups.
Various measures being taken in this regard include:
● Fast-tracking of Startup patent applications: The valuation of any innovation goes
up immensely, once it gets the protective cover of a patent. To this end, the
patent application of Startups shall be fast-tracked for examination and disposal,
so that they can realize the value of their IPRs at the earliest possible.
● Panel of facilitators to assist in filing of IP applications: For effective
implementation of the scheme, a panel of “facilitators” shall be empanelled by the
Controller General of Patents, Designs and Trademarks (CGPDTM), who shall
also regulate their conduct and functions. Facilitators will be responsible for
providing general advisory on different IPRs as also information on protecting
and promoting IPRs in other countries. They shall also provide assistance in filing
and disposal of the IP applications related to patents, trademarks and designs
under relevant Acts, including appearing on behalf of Startups at hearings and
contesting opposition, if any, by other parties, till final disposal of the IPR
application.
● Government to bear facilitation cost: Under this scheme, the Central Government
shall bear the entire fees of the facilitators for any number of patents, trademarks
or designs that a Startup may file, and the Startups shall bear the cost of only the
statutory fees payable.
● Rebate on filing of application: Startups shall be provided an 80% rebate in filing
of patents vis-à-vis other companies. This will help them pare costs in the crucial
formative years.
The scheme was launched initially on a pilot basis for 1 year; based on the experience
gained, further steps were taken.
Progress

Startups are eligible for an 80% rebate in patent filing fees and a 50% rebate in
trademark filing fees. Additionally, Startups are also provided the facility of expedited
examination of patent applications to reduce the time taken in granting patents. As of
31st January 2020, 211 patent facilitators and 241 trademark facilitators have been
empanelled under this scheme to provide free-of-charge services to Startups.
As of 31st January 2020, 2,785 patent applications have been granted 80% rebate on
the filing fee and 5,494 trademark applications have been granted a 50% rebate on
filing fee.
5. Relaxed Norms of Public Procurement for Startups

Objective

To provide an equal platform to Startups (in the manufacturing sector) vis-à-vis the
experienced entrepreneurs/ companies in public procurement
Details
Typically, whenever a tender is floated by a Government entity or by a Public Sector
Undertaking (PSU), very often the eligibility condition specifies either “prior experience”
or “prior turnover”. Such a stipulation prohibits/ impedes Startups from participating in
such tenders.
At present, effective April 1, 2015 Central Government, State Government and PSUs
have to mandatorily procure at least 20% from the Micro Small and Medium Enterprise
(MSME).
In order to promote Startups, Government shall exempt Startups (in the manufacturing
sector) from the criteria of “prior experience/ turnover” without any relaxation in quality
standards or technical parameters. The Startups will also have to demonstrate requisite
capability to execute the project as per the requirements and should have their own
manufacturing facility in India.
Progress
The requirement of prior turnover and prior experience has been relaxed to encourage
startups to participate in tenders. Further, startups have been exempted from the
requirement of earnest money deposit. ‘GeM Startup Runway’ has been launched for
startups to sell products and services to Government. As on 11 th February 2020, 4,210
DPIIT recognized startups have registered on Government e-Marketplace (GeM).
21,323 orders have been placed to startups. The value of orders served by startups is
to the tune of about Rs.776 crore.
Additionally, Startups can now register and participate in all public orders on Central
Public Procurement Portal and get exemptions on prior experience, prior turnover and
earnest money deposit requirements.

6. Faster Exit for Startups

Objective

To make it easier for Startups to wind up operations

Details
Given the innovative nature of Startups, a significant percentage fail to succeed. In the
event of a business failure, it is critical to reallocate capital and resources to more
productive avenues and accordingly a swift and simple process has been proposed for
Startups to wind-up operations. This will promote entrepreneurs to experiment with new
and innovative ideas, without having the fear of facing a complex and long-drawn exit
process where their capital remains interminably stuck.
The Insolvency and Bankruptcy Bill 2015 (“IBB”), tabled in the Lok Sabha in December
2015 has provisions for the fast track and / or voluntary closure of businesses.
In terms of the IBB, Startups with simple debt structures or those meeting such criteria
as may be specified may be wound up within a period of 90 days from making of an
application for winding up on a fast track basis. In such instances, an insolvency
professional shall be appointed for the Startup, who shall be in charge of the company
(the promoters and management shall no longer run the company) for liquidating its
assets and paying its creditors within six months of such appointment. On appointment
of the insolvency professional, the liquidator shall be responsible for the swift closure of
the business, sale of assets and repayment of creditors in accordance with the
distribution waterfall set out in the IBB. This process will respect the concept of limited
liability.
Progress
Ministry of Corporate Affairs has notified Startups as “Fast track firms” enabling them to
wind up operations within 90 days vis-a-vis 180 days for other companies
7. Funding Support through Fund of Funds

Objective

To provide funding support for development and growth of innovation driven enterprises
Details
One of key challenges faced by Startups in India has been access to finance. Often
Startups, due to lack of collaterals or existing cash flows, fail to justify the loans.
Besides, the high-risk nature of Startups wherein a significant percentage fail to take-off,
hampers their investment attractiveness.
In order to provide funding support to Startups, Government will set up a fund with an
initial corpus of Rs. 2,500 crore and a total corpus of Rs. 10,000 crore over a period 4
years (i.e. Rs. 2,500 crore per year). The Fund will be in the nature of Fund of Funds,
which means that it will not invest directly into Startups but shall participate in the capital
of SEBI registered Venture Funds.
Key features of the Fund of Funds are highlighted below:
● The Fund of Funds shall be managed by a Board with private professionals
drawn from industry bodies, academia, and successful Startups
● Life Insurance Corporation (LIC) shall be a co-investor in the Fund of Funds
● The Fund of Funds shall contribute to a maximum of 50% of the stated daughter
fund size. In order to be able to receive the contribution, the daughter fund
should have already raised the balance 50% or more of the stated fund size as
the case maybe. The Fund of Funds shall have representation on the
governance structure/ board of the venture fund based on the contribution made.
● The Fund shall ensure support to a broad mix of sectors such as manufacturing,
agriculture, health, education, etc.
Progress
The Fund of Funds for Startups (FFS) is being operated and managed by Small
Industries Development Bank of India (SIDBI). FFS funds the Alternative Investment
Funds (AIFs) which in turn invest twice the amount contributed by the FFS, into DPIIT
recognized startups. As on 16th March 2020, SIDBI has committed Rs 3123.20 Cr to 47
SEBI registered Alternative Investment Funds (AIFs). These funds have raised a corpus
fund of INR 25,728 Cr. INR 939.40 Cr. have been drawn from the FFS and Rs.
3,476.02 Cr. have been invested into 323 startups

8. Credit Guarantee Fund for Startups

Objective

To catalyse entrepreneurship by providing credit to innovators across all sections of

society
Details
In order to overcome traditional Indian stigma associated with failure of Startup
enterprises in general and to encourage experimentation among Startup entrepreneurs
through disruptive business models, credit guarantee comfort would help flow of
Venture Debt from the formal Banking System.
Debt funding to Startups is also perceived as high-risk area and to encourage Banks
and other Lenders to provide Venture Debts to Startups, Credit guarantee mechanism
through National Credit Guarantee Trust Company (NCGTC)/ SIDBI is being envisaged
with a budgetary Corpus of Rs 500 crore per year for the next four years.

Progress
The earlier Cabinet Note on Credit Guarantee Scheme for Startups has been
withdrawn. DPIIT is in the process of formulating a scheme for providing credit
guarantees for debt financing to Startups, keeping in view the suggestion of SIDBI.

9. Tax Exemption on Capital Gains

Objective

To promote investments into startups by mobilizing the capital gains arising from sale of
capital assets.

Details
● Due to their high-risk nature, startups are not able to attract investment in their
initial stage. It is therefore important that suitable incentives are provided to
investors for investing in the startup ecosystem.
● With this objective, exemption shall be given to persons who have capital gains
during the year, if they have invested such capital gains in the Fund of Funds
recognized by the Government. This will augment the funds available to various
VCs/AIFs for investment in startups.
● In addition, existing capital gain tax exemption for investment in newly formed
manufacturing MSMEs by individuals shall be extended to all startups. Currently,
such an entity needs to purchase “new assets” with the capital gain received to
avail such an exemption. Investment in ‘computer or computer software’ (as used
in core business activity) shall also be considered as purchase of ‘new assets’ in
order to promote technology driven Startups.
Progress
Section 54EE and 54 GB have been inserted in the Income Tax Act, 1961 to provide
exemption from capital gains tax.\

10. Tax Exemption to Startups for 3 years

Objective

To promote the growth of Startups and address working capital requirements.

Details
● During the initial years, budding entrepreneurs struggle to evaluate the feasibility
of their business idea. Significant capital investment is made in embracing ever-
changing technology, fighting rising competition and navigating through the
unique challenges arising from their venture.
● Also, there are limited alternative sources of finance available to the small and
growing entrepreneurs, leading to constrained cash funds.
● With a view to stimulate the development of startups in India and provide them a
competitive platform, it is imperative that the profits of startup initiatives are
exempted from income-tax for a period of 3 years.
● This fiscal exemption shall facilitate growth of business and meet the working
capital requirements during the initial years of operations. The exemption shall be
available subject to non-distribution of dividend by the Startup.

Progress
With a view to stimulate the development of Startups in India and provide them a
competitive platform, the profits of eligible DPIIT recognized startups are exempt from
income-tax for a block of 3 years out of 10 years since incorporation under Section
80IAC of the Income Tax Act. To avail these benefits, a Startup must get a Certificate of
Eligibility from the Inter-Ministerial Board (IMB). 266 startups have been granted income
tax exemptions.

11. Tax Exemption on Investments above Fair Market Value

Objective

To encourage seed-capital investment in Startups.

Details
● Under the Income Tax Act, 1961, where a Startup (company) receives any
consideration for issue of shares which exceeds the Fair Market Value (FMV) of
such shares, such excess consideration is taxable in the hands of recipient as
Income from Other Sources.
● In the context of Startups, where the idea is at a conceptualization or
development stage, it is often difficult to determine the FMV of such shares.
 ● In majority of the cases, FMV is also significantly lower than the value at which
the capital investment is made. This results into the tax being levied under
section 56(2)(viib).
● Currently, investment by venture capital funds in Startups is exempted from
operations of this provision. The same shall be extended to investment made by
incubators in the Startups.

Progress
DPIIT recognized startups are exempt from tax under Section 56(2)(viib) of the Income
Tax Act when such a Startup receives any consideration for issue of shares which
exceeds the Fair Market Value of such shares. The startup has to file a duly signed
declaration to DPIIT. Intimation regarding receipt of Declaration in Form 2 has been
mailed in the cases of 2,564 entities as on 27 th May 2020.

12. Organizing Startup Fests for Showcasing Innovation and Providing a

Collaboration Platform

Objective
To galvanize the Startup ecosystem and to provide national and international visibility to
the Startup ecosystem in India
Details
A pivotal component for growth of Startups is regular communication and collaboration
within the Startup community, both national as well international. An effective Startup
ecosystem can’t be created by the Startups alone. It is dependent on active participation
of academia, investors, industry and other stakeholders.
To bolster the Startup ecosystem in India, the Government is proposing to introduce
Startup fests at national and international stages.
These fests would provide a platform to Startups in India to showcase their ideas and
work with a larger audience comprising of potential investors, mentors and fellow
Startups.
As part of “Make in India” initiative, Government proposes to:
● Hold one fest at the national level annually to enable all the stakeholders of
Startup ecosystem to come together on one platform.
● Hold one fest at the international level annually in an international city known for
its Startup ecosystem.
The fests shall have activities such as sessions to connect with investors, mentors,
incubators and Startups, showcasing innovations, exhibitions and product launches,
pitches by Startups, mentoring sessions, curated Startup walks, talks by disruptive
innovators, competitions such as Hackathon, Makerspace, etc., announcements of
rewards and recognitions, panels and conferences with industry leaders, etc.

Progress
This Department has organized various Startup events. Some of such key events are as
follows:
 I. Roundtable headed by Minister of Commerce and Industry with Venture
Fund managers in April 2018 at Mumbai;
II. Roundtable with Singapore delegation led by Enterprise Singapore & TiE
Singapore in August 2018 at Delhi;
III. Roundtable with Japanese startups led by JETRO in September 2018 at
Delhi;
IV. Roundtable headed by Secretary DPIIT with Venture Fund managers in
August 2018 at Delhi;
V. Roundtable with Finance Secretary on banking regulations faced by
startups in September 2018 at Delhi;
VI. Startup India Global Venture Capital Summit in December 2018 at Goa;
VII. Roundtable headed by Secretary DPIIT on Angel Tax regulations in
February 2019 at Delhi;
VIII. Startup Manthan @ Aero India in February 2019 at Bengaluru;
IX. Speed Mentoring Session for Women Entrepreneurs in March 2019 at
Delhi;
X. Roundtable headed by Secretary, DPIIT on Accreditation of investors in
April 2019 at Delhi;
XI. Roundtable headed by Secretary DPIIT on Regulatory issues faced by
stakeholders of startup ecosystem April 2019 at Delhi;
XII. Roundtable with Central Government Departments on best practices for
promoting startups in May 2019 at Delhi
XIII. Roundtable headed by Secretary, DPIIT on journey and hurdles faced by
Startups in November 2019 at Delhi
XIV. Second edition of Startup India Global Venture Capital Summit in
December 2019 at Goa;
XV. Roundtable headed by Minister of Commerce and Industry to discuss
regulatory concerns of investors in December 2019 at Goa
XVI. Roundtable headed by Secretary DPIIT on Regulatory issues pertaining to
Startups held in January 2020 at Delhi;
XVII. Roundtable headed by Secretary DPIIT on mobilization of surplus funds
available with pension, insurance and PSUs for investment into Startups in
January 2020 at Delhi;
13. Launch of Atal Innovation Mission (AIM) with Self-Employment and Talent
Utilization (SETU) Program

Objective
To serve as a platform for promotion of world-class Innovation Hubs, Grand Challenges,
Startup businesses and other self-employment activities, particularly in technology
driven areas
Details
The Atal Innovation Mission (AIM) shall have two core functions:
● Entrepreneurship promotion through Self-Employment and Talent Utilization
(SETU), wherein innovators would be supported and mentored to become
successful entrepreneurs
● Innovation promotion to provide a platform where innovative ideas are generated
The main components proposed to be undertaken as part of the mission include:
Entrepreneurship promotion:
● Establishment of sector specific incubators including in PPP mode.
● Establishment of 500 Tinkering Labs.
● Pre-incubation training to potential entrepreneurs in various technology areas in
collaboration with various academic institutions having expertise in the field.
● Strengthening of incubation facilities in existing incubators and mentoring of
Startups.
● Seed funding to potentially successful and high growth Startups.
Innovation promotion:
o Institution of Innovation Awards (3 per state/UT) and 3 National level
awards.
o Providing support to State Innovation Councils for awareness creation and
organizing state level workshops/conferences.
o Launch of Grand Innovation Challenge Awards for finding ultra-low cost
solutions to India’s pressing and intractable problems.

Progress
This initiative is coordinated by NITI Aayog. As on 29th February 2020, 14916 schools
across the country have been selected for ATLs, out of which 4875 have received INR
12 lakhs grant each and are operational. A total of INR 585 crore of grant-in-aid is
sanctioned to Atal Tinkering Labs (ATLs) across the country and the target is to setup
10,000 ATLs by end of 2020 (subject to budgetary allocation).
NITI has launched. Innovation Awards through the challenge route by the name of Atal
New India Challenges (ANIC). Applications were called in 24 focus areas across 5
ministries.26 applicants have been shortlisted for funding and handholding support and
additional 26 applicants are shortlisted for handholding support.

14. Harnessing Private Sector Expertise for Incubator Setup

Objective

To ensure professional management of Government sponsored / funded incubators,

Government will create a policy and framework for setting-up of incubators across the
country in public private partnership

Details

India currently lacks availability of incubation facilities across various parts of the
country. Incubation facilities typically include physical infrastructure, provision of
mentorship support, access to networks, access to market, etc. Of all these features,
physical infrastructure entails large capital investments which can generally be
facilitated by the Government. However, requisite skills for operating an incubator are
pivotal as well, for which expertise of the private sector needs to be leveraged.
Considering this, Government shall encourage

i. Setting up of 35 new incubators in existing institutions. Funding support of 40%

(subject to a maximum of Rs. 10 crore) shall be provided by Central
Government for establishment of new incubators for which 40% funding by the
respective State Government and 20% funding by the private sector has been
committed. The incubator shall be managed and operated by the private sector.
ii. 35 new private sector incubators. A grant of 50% (subject to a maximum of Rs.
10 crore) shall be provided by Central Government for incubators established by
private sector in existing institutions. The incubator shall be managed and
operated by the private sector.
iii. The funding for setting up of the incubators shall be provided by NITI Aayog as
part of Atal Innovation Mission (refer #13 of this Action Plan). Participating
departments and agencies for setting up of new incubators shall be Department
of Science and Technology, Department of Biotechnology, Department of
Electronics and Information Technology, Ministry of Micro, Small and Medium
Enterprises, Department of Higher Education, Department of Industrial Policy
and Promotion and NITI Aayog.

Each of the above-mentioned departments/agencies would enter into a standard MoU

with identified private sector players for creation of academia-industry tie-ups for
nurturing innovations in academic institutions

Progress

Atal Innovation Mission (AIM), under the Atal Incubation Centres (AICs) scheme is
establishing new incubation centres, that nurture innovative start-up businesses in their
pursuit to become scalable and sustainable enterprises. These incubators provide
state-of-the-art infrastructure, mentoring support, business planning support, access to
seed capital, training sessions etc. As on 29th February 2020, Atal Innovation Mission
(AIM) has selected 86 incubators across the country to provide financial support
through grants in aid and has already disbursed grants worth ~INR 142.77 Crs to 59
incubators.

AIM is also providing scale-up support to a few distinguished incubation centres of the
country. These incubation centres, referred to as Established Incubation Centers
(EICs), have already been in existence but AIM intends to further augment their
performance by providing them scale-up support. The EIC program provides scale-up
support to well-performing incubators to augment, enhance and upgrade their
incubation capacity manifold and develop a conducive innovation and
entrepreneurship ecosystem by strengthening linkages with various national and
international stakeholders. As on 29th February 2020, Atal Innovation Mission (AIM)
has selected 16 incubators across the country to provide financial support through
grants in aid and has already disbursed grants worth ~INR 54.65 Crs to 9 incubators.
In both of these schemes, AIM is providing grants of upto INR 10 Crores over a period
of 3-5 years.

The first cycle of sanction (and disbursements) of the EIC and AIC programs began in
2016-17 and within the past three years, and as self-reported by the incubators, more
than 1,250 Startups have been incubated in the AICs/EICs out of which ~450 are
women-led start-ups. More than 144 MSME’s have been supported to build business
sustainability and 62+ Crores of seed funding have been leveraged from other sources
based on the 6+ Cr granted by AIM. Further, more than 13,800 jobs have been created
by the startups incubated at the AICs / EICs. Additionally, more than 1,000 mentors
have been on-boarded by the AICs/EICs to guide the Startups. Moreover, 2,200+
events and 700+ trainings have been conducted by this network of AICs / EICs. The
data is as of 29th February 2020.

15. Building Innovation Centres at National Institutes

Objective

To propel successful innovation through augmentation of incubation and R&D efforts.

Details

In order to augment the incubation and R&D efforts in the country, the Government will
set up/ scale up 31 centres (to provide facilities for over 1,200 new Startups) of
innovation and entrepreneurship at national institutes, including:
Setting up 13 Startup centres: Annual funding support of Rs. 50 lakhs (shared 50:50 by
Department of Science and Technology and Ministry of Human Resource
Development) shall be provided for three years for encouraging student driven
Startups from the host institute.
Setting-up/ Scaling-up 18 Technology Business Incubators (TBIs) at NITs/IITs/IIMs etc.
as per funding model of Department of Science and Technology with Ministry of
Human Resource Development providing smooth approvals for TBI to have separate
society and built up space.

Progress

This initiative is coordinated by Department of Science and Technology and Ministry of

Human Resource Development. As on 12 th March 2020, 11 TBIs (Technology
Business Incubators) have been approved for which Rs 42.2 crore have been
 sanctioned and Rs 20.02 crore have been disbursed to TBIs. 15 Startup Centres have
been approved for joint set up by Department of Science and Technology and Ministry
of Human Resource Development.

16. Setting up of 7 New Research Parks

Objective
To propel successful innovation through incubation and joint R&D efforts between
academia and industry

Details
The Government shall set up 7 new Research Parks in institutes such as IIT Guwahati,
IIT Hyderabad, IIT Kanpur, IIT Kharagpur, IISc Bangalore, IIT Gandhinagar and IIT
Delhi with an initial investment of Rs. 100 crore each. The Research Parks shall be
modelled based on the Research Park setup at IIT Madras.
● The IIT Madras Research Park endeavors to enable companies with a research
focus to set up a base in the Park and leverage the expertise of IIT Madras. The
Research Park breaks down the traditional, artificial barriers of innovation
through its connectivity and collaborative interaction. This helps industry to
create, integrate and apply advancements in knowledge. It leverages best
practices from successful Research Parks such as those at Stanford, MIT and
Cambridge.
The guiding principles behind the park include:
● Creating a collaborative environment between industry and academia through
joint research projects and consulting assignments.
● Creating a self-sustaining and technologically fertile environment.
● Encouraging and enabling R&D activities and Startups that are aligned to
potential needs of the industry
● Providing world class infrastructure for R&D activities and incubation.
● Enabling development of high-quality personnel and motivating professional
growth for researchers in companies through part time master’s and PhD
Programs.

Progress
This initiative is coordinated by Department of Science and Technology and Ministry of
Human Resource Development. 8 new Research Parks have been identified to be built
over 5 years at 7 IITs and IISc Bangalore. As on September 2019, INR 575 crore have
been sanctioned and INR 250 crore have been disbursed by DST. DST informed that
the Research Park at IIT Gandhinagar is expected to be operational by January 2020

17. Promoting Startups in the Biotechnology Sector

Objective

To foster and facilitate bio-entrepreneurship

Details

The Biotechnology sector in India is on a strong, growth trajectory. Department of

Biotechnology endeavors to scale up the number of Startups in the sector by nurturing
approximately 300-500 new Startups each year to have around 2,000 Startups by 2020.
In order to promote Startups in the sector, The Department of Biotechnology shall be
implementing the following measures along with its Public Sector Undertaking
Biotechnology Research Assistance Council (BIRAC): Bio-incubators, Seed Fund and
Equity Funding:
● 5 new Bio-clusters, 50 new Bio-Incubators, 150 technology transfer offices and
20 Bio-Connect offices will be set up in research institutes and universities
across India.
● Biotech Equity Fund – BIRAC AcE Fund in partnership with National and Global
Equity Funds (Bharat Fund, India Aspiration Fund amongst others) will provide
financial assistance to young Biotech Startups.
Encouraging and leveraging global partnerships:
● Bengaluru-Boston Biotech Gateway to India has been formed. Letter of Intent
has been signed between Department of Biotechnology, Government of India
and Department of Information Technology, Government of Karnataka for the
same. Through this initiative, a range of institutes in Boston (Harvard/ MIT) and
Bengaluru will be able to connect to share ideas and mentor the entrepreneurs
especially in the areas of Genomics, Computational Biology, Drug Discovery and
new vaccines.
● Amplification of Bio-entrepreneurship through BIRAC Regional Entrepreneurship
Centres (BREC). The BREC aims to impart bio-entrepreneurs with the necessary
knowledge and skills required for converting innovative ideas into successful
ventures. Department of Biotechnology shall set up 5 Regional centres or Mini-
BIRACs in the next 5 years.

Progress
● BIRAC has so far supported 1000+ Startups, Entrepreneurs & SMEs creating
Intellectual wealth (210+ IP filed) and a robust pipeline of 130+ commercialized
products and technologies across the country. Additionally, DBT through its
Flagship program - “Biodesign program” has trained around 125 med tech
innovators and commercialized 5 products in the market.
● Through BioNEST (Bioincubators Nurturing Enterprises for Scaling
Technologies), BIRAC has supported 48 Bio-incubators across India creating an
incubation space of 523449 sq. ft. for budding entrepreneurs. More than 650
incubates have been supported through the scheme so far. Six BioNEST clusters
have also been recognized to promote networking & resource sharing among
BioNEST incubators.
● Fund of Fund – Biotechnology Innovation Fund AcE (Accelerating Enterprises) is
mandated to encourage private equity mobilization for Biotech Startups through
co-investing in SEBI registered AIF. The assistance to a start-up will be up to INR
upto 7 crores against equity. Total 5 AcE Daughter Funds are operational from
the first call and signing of contribution agreements with 9 more partners from
 2nd call is in progress. A total sum of INR 150 Crores has been committed under
AcE Fund so far.
● SEED (Sustaining Enterprise and Entrepreneurship Development) Fund supports
up to INR 30 lakhs /Startup and acts as a bridge between promoters’ investment
and Venture/Angel investment. The SEED fund scheme is implemented through
BioNEST incubators and 40 Start ups have received BIRAC SEED Fund so far
and these startups have a combined valuation of over 360 Crores. BIRAC has
sanctioned INR 30 Cr as SEED fund grant out of which 20.3 Cr has been
released so far.
● LEAP (Launching Entrepreneurial Driven Affordable Products Fund for Start-ups)
LEAP fund supports up to INR 1 Cr/Startup and It is an equity linked funding
scheme launched in 2018-19. LEAP fund is being implement through BioNEST
incubators and aimed at enabling potential biotech startups to
pilot/commercialize their products/technologies. BIRAC has deployed this
funding opportunity through 5 BioNEST incubators recognizing those as LEAP
fund partners. Till now 10 Startups have been provided LEAP Fund. BIRAC has
sanctioned INR 24.5 Cr out of which 17.5 Cr has been released.
● Biotech Clusters has the core emphasis on innovation is critical for the growth of
biotechnology entrepreneurship. DBT has supported 4 Bio-clusters (NCR,
Kalyani, Bangalore and Pune) till date. Four Biotech Clusters have been
established:
o The Systems Medicine Cluster (SyMeC), Kalyani, West Bengal
o NCR Biotech Science Cluster, Faridabad
o Bangalore Life Sciences Cluster, Bengaluru
o Pune Bio-Cluster
● BIRAC has created 4 Regional Centers (BRIC, BREC, BRBC, BRTC-E&NE) as
extended arms to implement BIRAC’s mandate in the country.
o BRIC (BIRAC Regional Innovation Centre) at IKP Knowledge Park BioNEST,
Hyderabad
o BREC (BIRAC Regional Entrepreneurship Centre) at C-CAMP BioNEST,
Bengaluru
o BRBC (BIRAC Regional Bio innovation Centre) at Venture Centre BioNEST,
Pune
o BRTC-E&NE (BIRAC Regional Techno-Entrepreneurship Centre for East &
North East Region) at KIIT-TBI BioNEST, Bhubaneswar
● Five bio-connect offices have been established:
o CCAMP, Bengaluru with California Institute for Quantitative Biosciences
(QB3)
o CCAMP- Sister Innovation HUB with Roslin Innovation Centre, University of
Edinburgh, UK
o CEIIC BioNEST with European Union
o KIIT BioNEST – with TECHNOPORT SA – BELVAL Business Incubator,
Luxembourg
o KIIT BioNEST – with Start-Life Centre, Wageningen University Netherland
● Technology Transfer Offices (TTOs) were established to enhance academia-
industry inter-linkages, strengthen biocluster ecosystem and provide increased
opportunities for academia to translate knowledge into products and
 technologies. 05 TTOs have been established till date at BIRAC’s bioNEST
incubators:
o FITT, Delhi
o C-CAMP, Bengaluru
o IKP Knowledge Park, Hyderabad
o KIIT-TBI, Bhubaneshwar
o EDC, Pune

The above details are updated as of 29th February 2020.

18. Innovation Focused Programs for Students

Objective

To foster a culture of innovation in the field of Science and Technology amongst

students
Details
In order to promote research and innovation among young students, the Government
shall implement the following measures:
● Innovation Core. Innovation Core program shall be initiated to target school kids
with an outreach to 10 lakh innovations from 5 lakh schools. One lakh innovation
would be targeted, and the top 10,000 innovations would be provided prototyping
support. Of these 10,000 innovations, the best 100 would be shortlisted and
showcased at the Annual Festival of Innovations in the RashtrapatiBhavan.
● NIDHI: A Grand Challenge program (“National Initiative for Developing and
Harnessing Innovations) shall be instituted through Innovation and
Entrepreneurship Development Centres (IEDCs) to support and award Rs. 10
lakhs to 20 student innovations from IEDCs.
● UchhattarAvishkarYojana: A joint MHRD-DST scheme which has earmarked Rs.
250 crore per annum towards fostering “very high quality” research amongst IIT
students. The funding towards this research will be 50% contribution from
Ministry of Human Resource Development, 25% from Department of Science
and Technology and 25% from industry. This format has been devised to ensure
that the research and funding gets utilized bearing in mind its relevance to the
industry. Each project may amount to Rs5 crore only. This scheme will initially
apply to IITs only.
Progress
This initiative is coordinated by Department of Science and Technology and Ministry of
Human Resource Development.

 About 50,000 top ideas have been shortlisted from about 3.2 lakh nominations received
from Schools for an INSPIRE award of INR 10,000/- each, for preparation of a
project/model and participation in District Level Exhibition & Project Competition
(DLEPC).
 DST through its incubation program and other programs on innovation and Startups has
a capacity to nurture around 7000 Startups per year
 As on September 2019, INR 475 Cr. has been earmarked for 2 years.
 As on September 2019, 142 projects approved under Uchchatar Avishkar Yojana (UAY)
– I and Uchchatar Avishkar Yojana (UAY) – II. INR 389 Cr. is the total cost of 142
projects and INR 213 Cr. funds released for the projects

19. Annual Incubator Grand Challenge

Objective

To support creation of successful world class incubators in India

Details
For a new idea to become a successful commercial venture, adequate support and
mentoring at various stages of the business lifecycle is required. Incubators play an
important role in identifying early stage Startups and supporting them across various
phases of their lifecycle. In order to build an effective Startup ecosystem, it is imperative
that world class incubators, adopting leading industry practices, are setup in the
country.
The Government is proposing to make forward looking investments towards building
world class incubators. In its first phase, the aim is to establish 10 such incubators. To
enable this, Government of India shall identify and select 10 incubators who have the
potential to become world class. These incubators would be given Rs. 10 crore each as
financial assistance which may be used for ramping up the quality of service offerings.
The incubators shall also become reference models for other incubators aspiring to offer
best-in-class services. Video interviews of these incubators would be showcased on the
Startup India portal.
An “Incubator Grand Challenge” exercise shall be carried out for identification of these
incubators. The exercise shall entail:
• Open invitation of applications from incubators
• Screening and evaluation based on pre-defined Key Performance Indicators (KPIs)
The Incubator Grand Challenge shall be an annual exercise

Progress
An "Incubator Grand Challenge” exercise is being carried out for identification of these
incubators under the Established Incubation Centres (EIC) program of AIM. The
shortlisting and section process entail:
1. Open invitation of applications from incubators
2. Screening and evaluation based on pre-defined Key Performance Indicators (KPls)
Atal Innovation Mission has selected 16 incubators across the country to provide
financial support through grants in aid
Atal Innovation Mission (AIM) has selected 16 incubators across the country to provide
financial support through grants in aid and has already disbursed grants worth ~INR
54.65 Crs to 9 incubators till 29th February 2020.
These incubators are being given INR 10 crore each as financial assistance which may
be used for ramping up the quality of service offerings. The EIC program provides
scale-up support to well-performing incubators to augment, enhance and upgrade their
incubation capacity manifold and develop a conducive innovation and entrepreneurship
ecosystem by strengthening linkages with various national and international
stakeholders.