Scheme Name: Incentives for Incubators

State: Telangana

Description of the Scheme: Incentives given to the incubators to promote startups.

Target group :

Sector of the Scheme:

Eligibility Criteria: Startups registered in Telanagana

Nature & Mode of Assistance:

Reimbursement of stamp duty and registration fee ? Incubators and host institutes eligible for 100% reimbursement on sale/ lease deeds on the first transaction and 50% thereof on the second transaction

Financial assistance as matching grants: Government would match the funding raised by the incubator from Government of India on a 1:1 basis as matching grants.

Performance linked assistance ? Government assist the host institutes of recognised incubators with an operating grant based on number of startups incubated in a year.

Government shall ensure uninterrupted supply of electricity at industrial tariff. Additionally, the incubator will be permitted to avail renewable energy under open access system from within the state after paying cost component to DISCOMs as fixed by ERC (subject to a maximum of one third of their total power requirements) 25% reimbursement on internet charges upto a maximum of Rs.2,50,000 per year for the first 3 years of operation.

Government-owned buildings leased to technology incubators, no lease rent or O&M charges levied for a period of 5 years or until the incubator is self-sustainable, whichever is earlier. In case where private premises taken on lease / rent basis, rental reimbursement at Rs.5 per sq.ft per month or 25% of the actual rent paid, whichever is less, shall be reimbursed for a period of 3 years. This shall be limited to the incubation space only.

Investment subsidy of 20% of the value of the capital expenditure, other than land and building, shall be provided to incubator. This subsidy shall be limited to a maximum of Rs.30 lakhs.

Incentives for startups

Reimbursement of SGST: Unit can pay SGST to concerned department and avail reimbursement on a yearly basis. This will be applicable to only on the SGST paid to the state of Telangana and for a maximum total turnover of Rs.1 crore/annum for the first 3 years of operation.

Promotions: Government provides reimbursements of 30% of the actual costs including travel in international marketing through trade shows. This will be subject to a maximum of Rs.5 lakhs per year per company.

Patent filing cost: Cost of filing and prosecution of patent application will be reimbursed to the incubated startup companies subject to a limit of Rs.2 lakh per Indian patent awarded. For awarded foreign patents on a single subject matter, upto Rs.10 lakh would be reimbursed. Reimbursement will be done in 2 stages, i.e., 50% after the patent is filed and the balance 50% after the patent is granted.

To promote idea stage companies, the government shall offer recruitment assistance of Rs.10,000 per employee for the first year.

Startups that record a year-on-year growth rate of 15%, as per audited accounts, shall be eligible to get a grant of 5% on turnover, subject to a limit of Rs.10 lakhs within a period of 3 years from the date of incorporation.

Non-fiscal incentives of startups and incubators will be permitted to file self-certifications, under the following acts and rules framed there under barring inspections arising out of specific complaints. The same shall be facilitated through the startup cell:

General permission available for 3- shift operations with women working in the night for startups, subject to such units taking the prescribed precautions in respect of safety and security of employees in addition to providing the required welfare and health amenities and obtaining the necessary approvals.

"Financial Information (Subsidy, low interest rate, etc.)":

"Other Assistance (Procurement of machinery, Technology /Marketing, International Cooperation, etc.)":

How to apply:

www.it.telangana.gov.in

Whom to Contact:

Principal Secretary to Government, Information Technology, Electronics & Communications Department