Assistance to Start Ups / Innovation

Scheme for Assistance to Start Ups/Innovation

01.01.2015 to 31.12.2019

• Any individual/group of individuals having innovative idea/Concept will be eligible.
• Universities/education institutions, Incubation Centre/PSUs/R&D Institutions/Private and other establishments will be eligible as an institution to support and mentor to innovators as approved by Committee.

Innovative Project:

Innovation is the process of introducing new or making changes with updated technology, large and small, radical and incremental, to product, processes, and services that results in the introduction

A. Assistance for Innovation:

• Institution will support to the innovator by providing mentor services.
• Institution will allow the innovator to use facilities available in the institution for start ups.
• Rs. 10000/- per month will be provided to the innovator as sustenance allowance for one year whose project is recommended by institution as approved by Committee.
• Up to Rs. 5 Lakhs assistance will be provided to the institution for mentoring service.
• Up to Rs. 10.00 Lakhs assistance will be provided for Cost of Raw Material/Components & other related equipment required for the innovative process for the new product development based on approval of the committee.
• Govt. will support selected innovator to get free access to University/Libraries/Govt. Laboratories/SDCs(GIDC)/CoE/PSUs to have more clarity on his innovative ideas/concept.

B. Assistance once the Idea/Concept get commercialized.

• Marketing/publicity assistance of up to Rs. 10.00 lakhs will be provided for the introduction of innovated product in the market.
  • Project of Innovated Product will be assisted in getting Venture Capital.
  • VAT Related Incentive
    • The eligible unit shall pay the net VAT payable under the provisions of the Gujarat VAT Act, 2003 in the Government treasury.
    • The eligible unit will be allowed reimbursement to the extent of 80% of the net VAT paid excluding the following: (a) Additional Tax, and (b) Reduction of ITC as per the provisions of the G VAT Act, 2003.It is clarified that the amount paid on account of additional tax and the reduction of ITC as per theprovisions of the G VAT Act, 2003 shall not bereimbursed.
    • Only 70% of eligible fixed capital investment of eligible unit will be considered for reimbursement.
    • The reimbursement will be available for a period of five years from the date of production or the completion of limit of 70% whichever is earlier.
    • The eligible unit shall be entitled for reimbursement up to 1/5th of eligible limit in a particular year.
    • Restrictions will he made to ensure that the amount reimbursed is not again claimed by the subsequent dealers by way of tax credit for interstate sales, branch transfer, consignment and export.
    • The eligible unit shall manufacture the goods in its own unit for which it is eligible for incentives.
    • The eligible unit shall not transfer its business during the incentive period, nor assign its rights and responsibilities to any other agency.
    • The eligible unit shall remain in production during the incentive period.
    • The scheme shall be reviewed under the GST regime, but the total of assistance shall not exceed that available under this scheme.

C. The project will be eligible for other benefits available under MSME schemes

Annexure-1 Application form for Approval of Nodal Institute.

Annexure-2 Application Form for Innovators’ to availing Assistance under Nodal Institutions for the Start Ups/ Innovation scheme

Annexure-3 Recommendations of Screening Committee for Innovators’ to availing Assistance under Nodal Institutions for the Start Ups/ Innovation scheme.

• The institution which intend to promote the start ups, will submit its proposal to Industries Commissioner for approval of Committee as Nodal Institute.
• The innovator will approach institution with his proposal of innovative idea/concept for recommendation.
• The Committee will approve idea/ concept of an individual or group of individuals duly recommended by institution.
• The institution will submit proposal to Industries Commissioner to avail assistance for providing mentoring services and the committee will sanction the assistance based on number of innovators.
• The institution will submit proposal to Industries Commissioner to avail assistance for Cost of Raw material/ components & other related equipment required for innovation of new product/ process development based on number of innovators.
• The selected candidate whose project is approved by the committee will be eligible for sustenance allowance for one year and it will be paid by Director, CED.
• Assistance to the Nodal Institution will be released by Industries Commissioner.
• Once the idea get commercialized, the Innovator will apply to Industries Commissioner to avail benefits such as venture capital assistance, marketing/ Publicity support and apply to DIC for assistance under MSME scheme and Net VAT reimbursement etc.

Disbursement of the amount as per the decision of the SLIC, after receipt of claim/consent by the applicant and subject to the availability of the fund.

Name : Shri R. D. Barhat,
Designation: Jt. Commissioner of Industries (Salt&Text.)
Address : Block No. 1, 4th Floor, Udyog Bhavan, Sector 11, Gandhinagar-382 017
Phone : + 91 79 23252532,23252580,23252684
E-mail :
icsalt@gujarat.gov.in
iciosalt@gujarat.gov.in
icjcisalt@gujarat.gov.in