Odisha government approved a new startup policy with a target of making the state home to at least 1,000 startups over the next five years.
It also envisages Odisha to be among the top-three startup hubs by 2020, said chief secretary A P Padhi emerging from the cabinet meeting.
The Odisha Startup Policy (OSP), 2016, will be unveiled by Chief Minister Naveen Patnaik at an investors meet in Bengaluru on August 26.
The state government would come up with a startup capital infrastructure fund up to Rs 25 crore to support the startup units and young entrepreneurs. The government would also participate in the private state specific funding system to help the startups grow.
Under the policy, universities and colleges are eligible for one-time capital grant up to Rs 1 crore to set up incubation facilities on their campuses to help students learn about startups. Besides, government would provide reimbursement up to Rs 1 lakh per year for three years to institutions, incubators and industries for proving internet, electricity and mentoring services to startups.
For each successful startup, the approved incubators will be eligible for a performance capital grant of Rs 5 lakh, Padhi said.
To ensure sustainability of startups, the state government would provide Rs 10,000 per month for a period of one year to registered startups which would be eligible for getting startup fund from the state government, official sources said.
For innovation ideas, the state government would reimburse the marketing/publicity assistance up to Rs 5 lakh. The policy has provision for need-based assistance for successful startups.
Initially, the startup policy would be implemented for five years and the government has constituted a committee led by the chief secretary to monitor effective implementation of the policy.
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