06 June 2016 Current Affairs: As part of Prime Minister Narendra Modi’s “Make in India” and “Start-up India” moves, Gujarat Chief Minister Anandiben Patel, on 5 June 2016, announced her government’s new policy for promotion of information technology (IT) and electronic start-ups, envisaging setting up of 50 incubators to provide leadership and facilities to 2,000 start-ups over the next five years.
About 10 lakh square feet of space will be developed for incubators, targeting investment to the tune of ₹7,000 crore and creation of new employment opportunities.
The BJP government also announced a slew of incentives for incubators and start-ups, including financial assistance of up to ₹50 lakh for fixed capital investment and up to ₹5 lakh per annum for guidance of start-ups. They would be given 100 per cent waiver on stamp duty and registration. Also, they would get a rebate of 100 per cent amount of electricity duty for five years and 50 per cent assistance for software purchase up to ₹1 crore to incubators.
For start-ups, the government’s incentives include partnership of start-up units for government’s e-governance project, up to 25 per cent equity-linked financial assistance in fund taken for venture capital fund, 100 per cent discount on stamp duty and registration fee and product development and marketing assistance, ₹15 per square feet per employee lease rental assistance, ₹2 lakh for local patent and ₹5 lakh for international patent and some other incentives up to 7 years.