Administrative Council (AC) which met here under the chairmanship of Lieutenant Governor Manoj Sinha, approved J&K startup policy 2024-27 in supersession to the startup policy notified in 2018, the spokesman said.
He said the Jammu and Kashmir administration will set up a Venture Capital Fund of Rs 250 crore and will infuse a maximum of Rs 25 crore as an initial fund into it.
“The venture capital fund so created shall invest primarily in recognized startups of J&K. The (concerned) department shall work out detailed modalities for creation of the venture fund and its usage in consultation with the finance department,” the spokesman said.
He said J&K Entrepreneurship Development Institute (JKEDI) may also work out a mechanism to facilitate allotment of land to startups having good potential for growth.
“There is also a provision of one-time assistance as seed funding up to Rs 20 lakh (four equal instalments) to be provided to startups recognized by JKEDI which is nodal agency for startups. For seed funding , there is a capping of 25 startups per year which is a decision based upon available budget and desire to support a manageable number of startups effectively,” the spokesman said.
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He said the government is committed to establishing 2,000 startups in three years but by providing seed funding to a smaller number of carefully selected startups, the government can prioritize quantity over quality for long- term economic growth. “This will also ensure that the resources are utilized efficiently. The budgetary support for implementation of startup policy for a period of three years will be Rs 39.60 crore,” the spokesman said.
In order to nurture and inspire entrepreneurial talent of J&K by creating a vibrant and robust startup ecosystem in the UT, the spokesman said the Lt Governor-led administration felt that there is a need to refurbish the existing start-up policy and bring new policy suited to meet model challenges in this sector.
The feedback received from various stakeholder consultations by the Industries and Commerce department, highlighted the need to strengthen the incubation and acceleration ecosystem for startups which has been addressed in the current policy.
The implementation of this scheme shall be monitored by a high-powered committee headed by chief secretary and implemented by a task force committee headed by administrative secretary, Industries and Commerce, the spokesman said.