J&K’s new startup policy to boost entrepreneurial spirit in students, women and HNIs. All you need to know

The newly approved policy focuses on providing entrepreneurship support facilities to students, women, and entrepreneurs. Support will be extended through government, private entities, and high-net-worth individuals (HNIs) to facilitate the setup of startups, it added.

Here’s all you need to know about the revamped startup policy

— The Administrative Council (AC) convened under the chairmanship of Lieutenant Governor Manoj Sinha approved the J&K startup policy 2024-27, superseding the policy announced in 2018.

— As part of the initiative, the Jammu and Kashmir administration plans to establish a Venture Capital Fund of ₹250 crore. An initial capital injection of up to ₹25 crore will be infused into the fund.

— The venture capital fund will primarily invest in recognised startups within J&K. Detailed modalities for the fund’s creation and usage will be worked out in consultation with the finance department.

— The J&K Entrepreneurship Development Institute (JKEDI) is expected to develop a mechanism for the allotment of land to startups displaying significant growth potential.

— Furthermore, one-time assistance in the form of seed funding, up to ₹20 lakh (provided in four equal instalments), will be offered to startups recognised by JKEDI. This seed funding support will have a cap of 25 startups per year, aligning with budget constraints and the goal of effectively supporting a manageable number of startups.

— The government aims to establish 2,000 startups over the next three years. While prioritising quantity, the administration emphasises supporting a smaller number of carefully selected startups with seed funding.

— The budgetary allocation for the implementation of the startup policy for three years is set at ₹39.60 crore.

— To ensure effective implementation, a high-powered committee, led by the chief secretary, will monitor the scheme’s progress. Additionally, a task force committee, headed by the administrative secretary of Industries and Commerce, will oversee the day-to-day implementation of the startup policy.

Fulfilling model challenges in the startup sector

The decision to revamp the existing startup policy stems from the administration’s commitment to nurturing and inspiring entrepreneurial talent in Jammu and Kashmir, the official told PTI.

Stakeholder consultations by the Industries and Commerce department highlighted the need to strengthen the incubation and acceleration ecosystem for startups, a concern addressed in the updated policy, the official added.

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Published: 23 Feb 2024, 02:35 PM IST