Union Commerce and Industry Minister Nirmala Sitharaman said a start-up would get a certificate of recognition from the government to avail IPR-related benefits easily from now onwards but not leveraging on funding part as the government will control when and where the money given under the Start-Up India action plan be spent or used.
“A start-up would now require only a certificate of recognition from the Department of Industrial Policy and Promotion (DIPP) and would not be required to be examined by the inter-ministerial board, as was being done earlier. This is one rapid change that we have brought in,” she said here at the ‘Start-up India States’ Conference’. In the conference, five states including Rajasthan, Kerala, Telangana, Karnataka presented their initiatives to boost start-up ecosystem.
The Action Plan envisages a three-year tax holiday and other benefits to the startup entrepreneurs. The minister sadi a series of meetings with different stakeholders, investors, industry and journalists to resolve start-up issues will be held.
Reacting to the complaint that government interference she defended controls saying, “As and when money has to be spent, it will have to be looked into. All of us are duty-bound to be accountable and transparent… if tax breaks have to be given, in cases when the government defers, postpones or foregoes, we have to have some kind of accountability system. Therefore, there has to be an inter-ministerial board”.
The board consists of DIPP Joint Secretary, representative of Department of Science and Technology; and Department of Bio-technology. India is ranked third in the world, behind the US and the UK in terms of number of start-ups. Currently about 4,400 technology start-ups are there in India and the number is expected to be triple by 2020, she said.
On success side of these startups, she said the rate of success is beyond the government and it can only give a chance to every idea to reach some stage and give facilitation and tax breaks. Seeking private sector’s role, she said the DIPP has written to top 50 companies requesting them to support in setting up new incubators under their CSR activities.
In January, the government offered a tax holiday and inspector raj-free regime, capital gains tax exemption and Rs 500 crore under the promised Rs.10,000 crore corpus to fund the startups in the country.