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  • DAILY CURRENT AFFAIRS:Prime Minister Narendra Modi launched Madhya Pradesh Startup Policy

Prime Minister Narendra Modi launched Madhya Pradesh Startup Policy

Tags: State News

Prime Minister Narendra Modi launched the Startup Policy on 13 May 2022 to accelerate the startups of Madhya Pradesh and make Indore the startup capital. During this, the Portal of Startup Policy was also launched, which would help in promoting the startup ecosystem.

Objective of Startup Policy:

  • To encourage and motivate youth to develop innovative ideas.

  • To encourage setting up of new technical business incubation centres.

  • To promote employment opportunities for the youth in the state.

  • To strengthen the startup culture by developing entrepreneurial skills.

  • To promote entrepreneurship activities among the youth of the state, thereby enabling sustainable and inclusive socio-economic development across the state

Salient Features of Startup Policy:

  • The turnover of the entity for any financial year, since incorporation, should not exceed INR 25 crores.

  • An entity shall be deemed to be a Startup for a period of five years from the date of incorporation/registration, if it is incorporated as a Private Limited Company or is registered as a Partnership Firm or Limited Liability Partnership in India.

  • The entity must work towards innovation, development or improvement of products or processes or services

  • The state provides special incentives for women-led startups in the form of an interest subsidy of 8% on loans for up to three years, not exceeding INR 5 lakh.

Startup Ecosystem in Madhya Pradesh:

  • Madhya Pradesh Venture Finance Limited (MPVFL) has been set up to provide access to venture capital funds to startups and has received in-principle approval from the Securities and Exchange Board of India (SEBI).

  • Startup Incubator Cell is managed by the state nodal officer for startups.

  • About 31 percent startups in the state are located in Bhopal and 44 percent in Indore.

  • There are 1,937 start-ups recognized by the central government in Madhya Pradesh and 45 percent of them are run by women.

Madhya Pradesh :

  • Chief Minister: Shivraj Singh Chouhan

  • Governor : Shri Mangubhai Patel

  • The city of Indore here has been on the top of the cleanest cities of India for many years.

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