Administrative Council approves Start-up Policy 2024-27 for J&K

Srinagar, Feb 22: Administrative Council (AC) which met here under the chairmanship of Lieutenant Governor, Manoj  Sinha, approved  J&K  start-up policy  2024-27  in supersession to  the Start-up Policy notified in the year 2018. The policy has the objective of  setting up 2000 new Start-ups in Jammu & Kashmir in the next 5 years.

Rajeev Rai Bhatnagar, Advisor to the Lieutenant Governor; Atal Dulloo, Chief Secretary; Mandeep Kumar Bhandari, Principal Secretary to Lieutenant Governor attended the meeting.

The Government of Jammu &Kashmir will setup a Venture Capital Fund of Rs. 250 Crores and will infuse maximum of Rs. 25 Crores as an initial fund to this venture capital fund.

The venture capital fund so created shall invest primarily in recognized start-ups of Jammu & Kashmir. The Department shall work out detailed modalities for creation of venture fund and its usage in consultation with Finance Department.

The department may also work out a mechanism to facilitate  allotment of  land to start-ups having good potential for growth. There is also a provision of one-time assistance as  Seed Funding up to Rs.20 lakhs (4 equal installments)  to  be provided to start-ups recognized by JKEDI  which is nodal agency for  start –ups. For seed funding  there is capping of  25 start-ups per year  which is a  decision based upon available budget  and  desire to  support  a manageable  number of start-ups effectively.

The Government is committed to establish  2000 start-ups in three years  but  by providing  seed funding  to  a smaller   number of  carefully  selected  start-ups,  the Government can prioritize  quantity over quality for long term economic growth. This will also ensure that  the resources are utilized efficiently. The budgetary support for implementation of Start-up Policy for a period of three years will be Rs.  39.60 Crores.

In order to nurture and inspire entrepreneurial talent of J&K by creating a vibrant and robust start-up eco-system in the UT. The Government felt that there is  a need to  re-furbish  the  existing start-up policy  issued in the year 2018 and  bring  new policy  suited to  meet model challenges  in this sector  in the UT of J&K.

The feedback received from various stakeholder consultations by  Industries and Commerce Department,  need  was felt to  strengthen  the incubation   and   acceleration eco-system for  start-ups  which has been addressed in the current policy.

The implementation of this scheme in UT shall be  monitored by a High Powered Committee headed by Chief Secretary and  implemented  by a  Task Force Committee  headed by Administrative Secretary, Industries & Commerce.

The policy provides for providing entrepreneurship facilities to students, women  and support to the entrepreneurs through Government/ Private/ High Net worth individuals for setting up of start-ups.