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Incentives for Incubators

Incentives for Incubators

Incentives for Incubators

Incentives for Incubators

Incentives for Incubators


Incentives for Incubators

Incentives for Incubators


Incentives for Incubators

Incentives for Incubators


Incentives for Incubators

Incentives for Incubators

Incentives for Incubators
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Incentives for Incubators

  1. State Government shall promote establishment of Incubators with a vision of having Incubator in every district in Uttar Pradesh. The state aims to develop country’s largest Incubator in state’s capital, Lucknow.
  2. Host Institutes like Government and Private Technical, Management, R&D Institutes, Organizations / Non-profit Organization/ Corporates / Industry Association or through PPP mode shall be encouraged to establish Incubators or Accelerators in Uttar Pradesh.
  3. The selection of Host Institutes shall be done on case to case basis after due diligence.
  4. Further, the State Government shall recognize Lead Incubators (Navratnas), having rich experience and strong capabilities in the Incubation and start-up space. The State Government shall enter into MoU with such Lead Incubators to guide, mentor and handhold other Incubators / Institutes willing to establish Incubators in Uttar Pradesh.

The following incentives can be availed for establishing Incubators / Accelerators

  1. Capital Grant: Capital grant on setting up of Technology Infrastructure shall be reimbursed upto 75% in case of Government Host Institutes and 50% in case of other Host Institutes, subject to a maximum limit of INR 1 crore. The same limit shall be applicable to Host Institutions for scaling up existing Incubator / Accelerator. In case the grant amount needs to be increased, the same shall be decided by Empowered Committee on case to case basis.
  2. Operational Expenditure: Financial support of maximum INR 5 Lakhs per year for 5 years, covering the deficit of the operational expenditure in running the Incubator / Accelerator.
  3. Rebate on Lease/ Rental Space: Reimbursement up to 25% of lease / rental charges on the space in which Incubator / Accelerator operates, shall be eligible with maximum limit of INR 10 lakhs per year, for a period of 5 years or until the Incubator is self-sustainable, whichever is earlier.
  4. Reimbursement of paid Stamp Duty and Registration Fee: Incubators / Accelerator shall be eligible for 100% reimbursement of the Stamp Duty and Registration Fee paid on sale/ lease / transfer of land and office space for the first transaction
  5. Electricity Duty Reimbursement: 100% reimbursement on electricity duty will be given to Incubator / Accelerator for a period of 5 years
  6. Mentorship Assistance: Mentorship Assistance of INR 2 Lakhs per mentor shall be given to Mentors associated with Incubator / Accelerator. This assistance shall be given for covering expenses incurred on coaching, guiding, travelling, lodging etc. Further, Coaches would also be appointed. These coached would be the mentors, who possess deeper knowledge about the local ecosystem of the state.
  7. Empanelment of Experts: The State Government shall empanel a pool of experts from diversified fields such as accounting, legal, financial, investment, marketing etc to provide such services to start-ups / Incubators.
  8. Government of Uttar Pradesh envisages creation of world class infrastructure in the form of Center of Excellence (CoE). CoE shall possess maturity and experience in incubation, exemplary standards of R&D and promote best practices for nurturing entrepreneurship
  9. The CoE shall promote focus areas like Big Data, Cloud Computing, Internet of Things (IoT), Machine Learning, Artificial Intelligence, Cyber Security, clean-tech, edu-tech, agri-tech, health-tech and other areas of social or national importance
  10. Host Institutes like Government and Private Technical, Management, R&D Institutes, Organizations / Non-Profit Organization/ Corporates / Industry Association or through PPP mode can establish CoE
  11. The Government of Uttar Pradesh shall provide financial support in the form of Grant-in-aid (covering capital and operational expenditure) upto INR 10 crore to CoE for a maximum period of 5 years. It is expected that the CoE would become self-sustainable by the end of 5 years
  12. The approval for setting up CoEs shall be contingent upon Empowered Committee’ decision. The release of funds / incentives by the Government shall depend upon their performance.
 

Non-Fiscal Incentives for Incubators

Incubators in the State will be permitted to file self-certifications and such units will be exempted from inspection for the first 3 years of operation, in the prescribed formats under the following acts and rules framed (may be amended from time to time) there under barring inspections arising out of specific complaints.

  1. The Factories Act
  2. The Maternity Benefit Act
  3. The Shops & Establishments Act
  4. The Contract Labour (Regulations & Abolition) Act
  5. The Payment of Wages Act
  6. The Minimum Wages Act
  7. The Employment Exchanges (Compulsory Notification of Vacancies) Act