J&K Admn approves new startup policy

Jammu, February 22

The J&K administration has approved start-up policy 2024-27 in supersession to the policy notified in the year 2018. The policy has the objective of setting up 2,000 new startups in J&K in the next 5 years.

The UT administration will setup a Venture Capital Fund of Rs 250 crore and will infuse maximum of Rs 25 crore as an initial fund to this venture capital fund.

“The venture capital fund so created shall invest primarily in recognised startups of J&K. The Department shall work out detailed modalities for creation of venture fund and its usage in consultation with the Finance Department,” an official informed.

The department 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 (4 equal instalments) to be provided to startups recognised by JKEDI, which is nodal agency for startups. For seed funding, there is 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 administration plans to establish 2,000 startups in three years but by providing seed funding to a smaller number of carefully selected startups, the government can prioritise quantity over quality for long term economic growth. This will also ensure that the resources are utilised efficiently. The budgetary support for implementation of Startup Policy for a period of three years will be Rs 39.60 crore,” the official said.

He informed that after the feedback received from various stakeholder and consultations by Industries and Commerce Department, need was felt to strengthen the incubation and acceleration ecosystem for startups, which has been addressed in the current policy.

A high powered committee will monitor the implementation of the scheme which will be headed by the Chief Secretary and implemented by a Task Force Committee headed by the Administrative Secretary, Industries and Commerce.