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The
State of Andhra Pradesh requires world class scientific and technologically
advanced ecosystems that could empower and enable its youth to carry out the
fundamental duties for the country. For the development of innovation,
entrepreneurship and startup culture within the State, the Government of Andhra
Pradesh has proposed to set up a mission for Innovation and Capacity Building.
This Mission has helped formulate the Andhra Pradesh Innovation and Startup
Policy which is based on Shared Infrastructure, Incubators/ Accelerators, Human
Capital, Funding and the most important of all, a system of Good Governance.
This article talks about the various aspects of the Andhra Pradesh Innovation
and Startup Policy.
Vision
of the Policy
The
Vision of the Andhra Pradesh Innovation and Startup Policy is as follows:
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”To create a world class ‘technology startup
ecosystem’ by fostering ‘entrepreneurship and a culture of innovation’ which
contributes to increased knowledge, wealth and employment in our society.“
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Mission
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To provide avenues for the first generation
entrepreneurs, researchers, students, citizens, and the government to learn,
collaborate, disrupt and transform their innovative ideas into prototypes of
viable products and services of social relevance.
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Targets
of the Policy
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Andhra Pradesh strives to achieve their collective
dream of a new India where a new generation of software products would be
manufactured and thereby, would create multiple effects in the growth of the
State and the Nation along with employment creation and social transformation.
Through this Policy, the Government hopes to create an ecosystem that brings up
an entrepreneur in almost every other family. The following are the targets
that the Government aims to cross off through this Policy.
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100 Incubators/ Accelerators to be established.
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1 million sq. ft. of Incubation Space to be
developed.
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5,000 Companies & Startups to be
incubated.
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Venture Capital of INR 1000 Crores to be mobilised
for Innovation.
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To create at least one billion dollar technology
startup that is home-grown.
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Foster Innovation Culture among the youth of the
State.
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State
Support
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The Non Fiscal and Fiscal incentives applicable to
every category of the IT industry would also be relevant to the incubators,
accelerators and startups. Along with this, the following would be offered.
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Non
Fiscal Incentives
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The following are the Non Fiscal Incentives that are
offered by the Government to various startups.
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An effective Single Window System: A
highly powered Single Window Clearance Unite would be created and
operationalised for granting various approvals and clearances to first time and
young entrepreneurs.
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Special provisions for Startups: Allocation
of spaces would be offered to incubators and startups on the basis of priority.
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Awards for Innovation: The
Government encourages innovation among young entrepreneurs through the
Innovation Awards.
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Cloud Server: The Government offers
to host a cloud server that could connect every incubation centre in the State
of Andhra Pradesh.
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Enterprise Software and Device Testing
Laborataries: The Government has offered to procure Enterprise
versions of critical software that is essential for testing and other purposes
at an incubator.
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MIT FAB Laborataries: A high end
FABLAB from MIT, Boston, USA would be set up at a Pilot Incubator to promote
education in hardware manufacturing and developing prototypes of hardware
products.
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Fiscal Incentives
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The following are the Fiscal Incentives that are
offered by the Government to various startups.
Registration & Stamp Duty:
Startups would be eligible for 100% reimbursement of Stamp Duty, Transfer Duty
and the Registration Fee paid on the sale or lease deeds on the initial
transaction and 50% for the second transaction.
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Power Subsidy:
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Startups would be eligible for 25%
subsidy on electricity bills for INR 30 Lakhs or 3 years from the commencement
date of commercial operations, whichever is earlier.
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Startups established by the SC/ ST
and Women Entrepreneurs shall be eligible for 50% subsidy on electricity bills
for 5 years from the date of commencement of commercial operations or INR 50
Lakhs, whichever is earlier.
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Electricity Duty Exemption and
applicability of Industrial Tariff: New IT/ ITES units would be entitled to a
complete exemption on Electricity duty for 5 years after coming into commercial
operations.
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Patent Filing Cost:
The expenses for filing patents would be reimbursed to the startups in Andhra
Pradesh with a limit of INR 5 Lakhs per domestic patent and INR 10 Lakh for an
international patent.
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Quality Certification:
Startup units would be eligible for reimbursement of 20% of expenses incurred
for obtaining quality certifications for CMM Level 2 onwards with a limit of
INR 5 Lakh.
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Technology & Market
Support: Government would support IT Exporters Associations,
ITsAP, NASSCOM, ELIAP, STPI, IEG, or any such organisation for conducting
surveys and research on trends in technology, market intelligence and on other
work essential to the IT Industry.
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Business Networking and
Promotional Events: The Government promotes and encourages
participation in various national and international events by the industry and
by leading a Government-industry business delegation to identified Exhibitions
and Conferences.
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A 50% subsidy on lease rentals with
a limit of INR 5 Lakhs per annum for 3 years for any “plug and play” built up
office space occupied by start-ups, MSMEs, first-generation technocrat
entrepreneurs, ST, SC & women entrepreneurs in IT, Multi-purpose SEZs, IT
Parks or in any notified private location.
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Market Development:
50% reimbursement of the rental cost for the exhibition stall for participating
in notified national or international exhibitions limited to a space of 9 Sq.
Mt.
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Recruitment or Training
Assistance: Assistance at the cost of INR 20,000 for a single IT
professional employed within two years of establishing the startup unit.
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Every turnkey projects with an
outlay of up to INR 5 Crores, to be undertaken by Government Departments, would
be reserved for every MSMEs registered and operating in the State of Andhra
Pradesh.
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Performance-linked Grants:
MSMEs and startups that record a year-on-year growth rate of 15%, according to
the audited accounts, would be eligible to receive a grant of 5% on the
Turnover.
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The Official Government Portal of
Andhra Pradesh has published a Blueprint for the development of IT, Electronics
and e-Governance sectors. Suo moto proposals, based on the AP Blueprint for
applications relevant to the needs of the Government would be accepted from an
AP-based MSME IT or startup units. The best proposals among those found to be
appropriate for achieving the goals set out in the blueprint would be accepted,
and the selected IT units, and startups would be awarded INR 50 Crores per
annum.
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Subsidy on Bandwidth for
Internet Connectivity: A 20% subsidy on the bandwidth for internet
connectivity paid to an Internet Service Provider (ISP) would be available for
a period of two years from the date of starting commercial production or
operation.
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Governance of the Innovation Policy
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APInC: The empowered ‘Andhra Pradesh Innovation
Council (APInC)’ has been formed with the various representatives of the
industry, incubators and the other stakeholders. APInC would be in charge to
administer the incentives in a speedy, time-bound and transparent manner.
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Empowered Mission for Innovation & Capacity
Building: An empowered Mission has been established for the development of the
sector and to take agile and faster decisions. The mission is headed by a
Technocrat who has a record of promoting innovation in areas related to
technology. It would comprise of 3 experts, one each in e Governance,
Electronics and IT along with 3 academicians and representatives each of the
Industry. For more details visit the following link.
For more details visit the following link.
https://apis.ap.gov.in
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