Incentive to Start ups or Inovation

Who Can Get the Subsidy for Start Ups

I.   Any individual or group of individuals having innovative idea or Concept will be eligible.

II. Universities or 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.

Which Activities Are Eligible for Subsidy to Start Ups

Innovation is the process of introducing new or making changes with updated technology, large and small, radical and incremental, to product, processes, and services that results in the introduction.

What is the Time Frame for Subsidy to Start Ups

Operative period is 01.01.2015 to 31.12.2019

Which Kind of Subsidy available to Start ups

  1. Assistance for Innovation:
    • Institution will support to the innovator by providing mentor services.
    • Institution will allow the innovator to use facilities available in the institution for start ups.
    • 10000/- per month will be provided to the innovator as sustenance allowance for one year whose project is recommended by institution as approved by Committee.
    • Up to Rs. 5 Lakhs assistance will be provided to the institution for mentoring service.
    • Up to Rs. 10.00 Lakhs assistance will be provided for Cost of Raw Material/Components & other related equipment required for the innovative process for the new product development based on approval of the committee.
    • Govt. will support selected innovator to get free access to University/Libraries/Govt. Laboratories/SDCs(GIDC)/CoE/PSUs to have more clarity on his innovative ideas/concept.
  2. Assistance once the Idea/Concept get commercialized.
    • Marketing/publicity assistance of up to Rs. 10.00 lakhs will be provided for the introduction of innovated product in the market.
    • Project of Innovated Product will be assisted in getting Venture Capital.
    • VAT Related Incentive
      1. The eligible unit shall pay the net VAT payable under the provisions of the Gujarat VAT Act, 2003 in the Government treasury.
      2. The eligible unit will be allowed reimbursement to the extent of 80% of the net VAT paid excluding the following: (a) Additional Tax, and (b) Reduction of ITC as per the provisions of the G VAT Act, 2003.It is clarified that the amount paid on account of additional tax and the reduction of ITC as per the provisions of the G VAT Act, 2003 shall not be reimbursed.
      3. Only 70% of eligible fixed capital investment of eligible unit will be considered for reimbursement.
      4. The reimbursement will be available for a period of five years from the date of production or the completion of limit of 70% whichever is earlier.
      5. The eligible unit shall be entitled for reimbursement up to 1/5th of eligible limit in a particular year.
      6. Restrictions will he made to ensure that the amount reimbursed is not again claimed by the subsequent dealers by way of tax credit for interstate sales, branch transfer, consignment and export.
      7. The eligible unit shall manufacture the goods in its own unit for which it is eligible for incentives.
      8. The eligible unit shall not transfer its business during the incentive period, nor assign its rights and responsibilities to any other agency.
      9. The eligible unit shall remain in production during the incentive period.
      10. The scheme shall be reviewed under the GST regime, but the total of assistance shall not exceed that available under this scheme.
  3. The project will be eligible for other benefits available under MSME schemes.

What are the Document Requirements for Subsidy to Start Ups

Sr.No.Particulars
1Registration details of institute (Copy of Memorandum & Article of Association/Partnership deed/ Regn. Under society Act and others if any)
2In case of CSIR/DSIR approved institutes, copy of registration with CSRIR/DSIR/Others.
3Detail profile of Institutions.
4Annual audit report of Nodal Institutions for last 2 years
5Details of facilities
(Building/instruments/Infrastructure/Manpower)available with institute
6Detail CV of all Innovators Viz. Name, Address, Qualification (Brief Resume of all Innovators)
7Name and Address of Industrial Unit/Institute (In case the innovation is proposed to be undertaken in the location other than Nodal Institute)
8EM / IEM Copy / Udhyog Adhar No. ( Where ever applicable)
9Name address of University/Laboratory/CoE/PSU’s for the use of facility.

What is the Procedure to get Subsidy for Start Ups

  1. The institution which intend to promote the start ups, will submit its proposal to Industries Commissioner for approval of Committee as Nodal Institute.
  2. The innovator will approach institution with his proposal of innovative idea/concept for recommendation.
  3. The Committee will approve idea/ concept of an individual or group of individuals duly recommended by institution.
  4. The institution will submit proposal to Industries Commissioner to avail assistance for providing mentoring services and the committee will sanction the assistance based on number of innovators.
  5. The institution will submit proposal to Industries Commissioner to avail assistance for Cost of Raw material/ components & other related equipment required for innovation of new product/ process development based on number of innovators.
  6. The selected candidate whose project is approved by the committee will be eligible for sustenance allowance for one year and it will be paid by Director, CED.
  7. Assistance to the Nodal Institution will be released by Industries Commissioner.
  8. Once the idea get commercialized, the Innovator will apply to Industries Commissioner to avail benefits such as venture capital assistance, marketing/ Publicity support and apply to DIC for assistance under MSME scheme and Net VAT reimbursement etc.

 For More Details about Subsidy for Start Ups or Innovation

Get in touch with an AdroitCorporation.in Subsidy Expert, if you have any questions related to subsidy to start ups. AdroitCorporation.in can also help you to obtain subsidy for your start ups and innovation. We will be happy to assist you!

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