To turn Delhi into the preferred destination for startups by 2030, the Delhi Cabinet on Thursday approved the implementation of its startup policy. The policy aims to provide an enabling ecosystem for an innovation-based economy to help the Capital become a global innovation hub.
Announcing the policy on Thursday, Delhi Chief Minister Arvind Kejriwal said the government will provide fiscal and non-fiscal incentives to the youth who want to build their own startups.
“The Delhi Government will pay up to 50% of the rent of a startup’s office lease or pitch in for a portion of the salaries that these startups will pay to their employees. We will also reimburse them for the costs incurred on applying for patents, copyrights and trademarks,” Mr. Kejriwal said.
He added that the government will also offer collateral-free and interest-free loans to incentivise incubation centres and fabrication labs.
The government will form a monitoring committee to oversee the startup policy. This committee will be headed by Delhi’s Finance Minister. The composition of this committee will be – 85% representatives from the private sector, 10% from educational institutions and 5% from the government.
Mr. Kejriwal said that a 20-member task force will also be set up to oversee the registration of startups. This task force will have a government official, academics, as well as business and trade representatives.
The Delhi CM said often those who want to start a business end up spending 90% of their time on paperwork and official formalities. This policy will help them overcome this problem by empanelling agencies and professionals to aid these startups for free, he said.
“There will be panels of lawyers, experts, CAs and other such professionals who will provide free of cost services to the startups. They will be paid by the Delhi government,” Mr. Kejriwal said.
The policy will also focus on the youth by teaching entrepreneurship to students in classes IX-XII and giving them seed capital under the Business Blasters Programme.
The initiative will also be replicated at the college level. Students working on startups while studying in the Delhi government’s colleges will be able to seek up to two years of leave to build their businesses.
He added that the country’s hope and future lay in the hands of its talented, capable, hardworking and intelligent youth, which had been repeatedly failed by an apathetic system.
“Be it the education system, the employment system or the political system, they’ve all hindered the growth of our country. Today, our children run from pillar to post to apply for jobs. On the contrary, the Delhi government is promoting an environment that is conducive for businesses,” Mr. Keriwal said.
He said he was sure that the policy will lead to a wave of startups in Delhi.