Nagaland aims for 500 start-ups in five years

Our Correspondent
Kohima | August 19

Nagaland Chief Secretary Temjen Toy, on August 16, launched the Startup Nagaland website, which among others, aims to establish the state as a model startup leader in the region.

The targets are ambitious. For starters, the objective is to facilitate the growth of “at least 500 start-ups in the next five years” with a focus on establishing innovative ‘Made in Nagaland’ products and services.

Primarily, the portal has been developed to enable startups from the state to register online and apply for recognition under ‘Startup Nagaland.’ Any startup can apply for recognition and track the application online.  As of August 19, 8 startups had registered on the portal, while 4 incubators or “any organization designed to accelerate the growth and success of entrepreneurial ventures” were listed on the portal. 

They are Nagaland Tool Room & Training Centre, Dimapur; School of Agriculture Sciences & Rural Development, Medziphema; National Institute of Electronics & Information Technology (NIELIT); and National Institute of Technology, Nagaland. The Department of Industries & Commerce has been appointed as the Nodal department.

 

What is a Startup? 
As defined by the Government of India’s ‘Startup India’ initiative, an entity is considered as so if its incorporation or registration is not prior to seven years, and its turnover does not exceed Rs. 25 crore, for any preceding financial year. Among others, it should be registered in Nagaland or employ at least 60% of its total qualified workforce from indigenous inhabitants of Nagaland.

Such an entity should not be an extension of an existing family business; or formed by splitting up or reconstruction of a business already in existence.

The Morung Express took a peek into the dedicated portal (www.startup.nagaland.gov.in) and following is a lowdown on various packages which have been designed to strengthen entrepreneurs.

 

Special focus on women 
Nagaland is committed to encourage and support women entrepreneurs in the State, the portal informed adding that special efforts will be made to identify such entrepreneurs in rural and urban Nagaland by creating awareness on various State & Centrally Sponsored Schemes (CSS).

25% of funds will be dedicated to promote startups by women entrepreneurs, it added. 

 

Stamp Duty Reimbursement
Startups selected under startup policy shall be eligible for 100% reimbursement of Stamp Duty/Registration Fee/ Conversion Fee on sale/lease deeds for first transaction.

 

Digital Upgradation Subsidy
Selected startup will also be eligible for digital upgradation subsidy at 50% of capital expenditure for purchase of computers, smart phones, related hardware and software subject to a ceiling of Rs 5 Lakh per entity. 

 

GST reimbursement
Startups selected shall be eligible for annual reimbursement of state GST paid in sales of goods for 3 years up to a maximum of Rs 5 lakhs per Start-up per year.

 
Broadband connectivity 
reimbursement & power
50% rental reimbursement for a maximum period of two years subject to a ceiling of Rs 2 lakh, including any rent being paid to an incubator/co-working. Startups selected shall be eligible for power subsidy @50% subject to a limit of Rs. 10 lakhs p.a for 5 years.

 
Reimbursement of patent filing cost
Selected startup can avail upto 100% reimbursement of the actual cost (including filing fees, attorney fees, search fees, maintenance fees) for patent filing with a maximum limit of Rs 2 lakh for domestic and up to Rs 5 lakh international. This reimbursement shall be payable 50% after the patent is filed and the balance 50% after the patent has been granted.

 
Marketing assistance
A reimbursement of 50% of the actual marketing and promotion costs (including travel) incurred by a startup in listing fees for online and offline advertisements, in store promotions, publishing or digital marketing materials, trade show participation, market research, etc subject to maximum of Rs 5 lakh per Start Up.

 
Regulation, public procurement
The state government will ease regulations for registrations and renewals with self-certification and deemed approval for recognized start-ups to avail Government licenses and services. It will encourage participation of startups in public procurement by waiving off prior experience or turnover requirements so long as the product meets the desired specifications.

Consortium of eligible companies with start-ups  are also encouraged for bidding for state government projects which will bring in the element of innovation and new ideas. Incentives or provisions under Nagaland Industrial and Investment Policy in force shall be made eligible for the startups.

However, the incentive for the same component cannot be claimed from more than one scheme, it added.