Updated on: December 17th, 2019 4:52 PM

Assistance to Startup Innovation

An innovative scheme has been implemented by the Government of Gujarat called Assistance to Startups Innovation, that can be availed by individuals or group of individuals who propose an innovative concept for their business. Innovation deals with the process of introducing new or making changes with the updated technology, radical and incremental, to product, processes and services. The scheme has an operative period from 01.01.2015 to 31.12.2019. This article will take a closer look at the scheme.

Eligibility Criteria

• Any individual/group of individuals having an innovative idea/concept can apply for the scheme.
• Universities/education institutes, Incubation Centre/PSUs/R&D Institutions/Private and other establishments would be eligible as an institution to assist and mentor innovators as approved by the Committee.

Assistance for Innovation

• The institution supports innovator by providing services.
• Institution permits the innovator to use facilities that are available in the institution for startups.
• Rs. 10,000 per month would be provided to the innovator as sustenance allowance for one year whose project is nominated by the institution as approved by Committee.
• A sum of Rs. 5 Lakhs would be provided for the cost of raw material/components and other equipment that are necessary for the innovative process of product development.
• The Government assists selected innovator to get free access to University/library/Government Laboratories/CoE/DSCs(GIDC)/PSUs to have more clarity on his innovative ideas/concept.

Assistance for Commercialization of Idea/Concept

• Marketing/publicity assistance of up to Rs. 10 lakhs would be offered for the introduction of innovative products in the market.
• The project of innovative products would be assisted in getting Venture Capital.
• The eligible units have to pay the net VAT payable as per the provisions of the Gujarat VAT Act, 2003 in the Government treasury.
• The eligible unit would be permitted reimbursement to the extent of 80% of the net VAT paid, excluding the following:
  • Additional Tax
  • Reduction of ITC according to the provisions of the GVAT Act, 2003.
  • Only 70% of the eligible fixed capital investment of an eligible unit would be considered for reimbursement.
  • The reimbursement is made available for five years from the date of production or on completion of a limit of 70%.
  • The eligible unit would be responsible for reimbursement up to 1/5th of the eligible limit in a particular year.
  • The restriction is made to ensure that the refunded amount is not claimed again for interstate sales, branch transfer, consignment and export.
  • The eligible unit manufactures goods for which it is eligible for incentives.
  • The eligible unit should not transfer its business during the incentive period, nor assign its rights and responsibilities to any other agency.
  • The eligible unit remains in production during the incentive period.
  • The scheme is reviewed under the GST regime, and the total assistance should not exceed from the one provided by the scheme.

Documents Required

Below documents are required to be submitted to avail the scheme:

• Registration details of the Institute
• Copy of registration with CSRIR/DSIR/ other for CSIR/DSIR approved institutes.
• Detailed profile of the institutions.
• The annual audit report of Nodal Institutions for the last two years.
• Details of the facilities.
• Detailed CV of all the innovators.
• Name and address of the Industrial Unit/Institute (if the institution is proposed to be managed in a location other than the Nodal Institute).
• EM/IEM copy.
• Name and address of University/Laboratory/CoE/ PSUs for the use of the facility.

Application Procedure

• The institute that promotes startups submits its proposal to the Industries Commissioner for the approval of Committee as Nodal Institute.
• The innovator approaches the institution with the proposal of an innovative idea/concept for the recommendation.
• The committee approves the idea/concept of an individual/group of individuals that is advocated by the institution.
• The institution submits the proposal to the Industries Commissioner to avail assistance for providing mentoring services, and the committee sanctions the assistance based on the number of innovators.
• The institution submits the proposal to the Industries Commissioner to avail assistance for the cost of raw material/components and other related equivalents that is required for innovation of new product/process development depending on the number of innovators.
• The selected candidate's project that is approved by the committee would be eligible for the sustenance allowance for one year, and it will be paid by the Director, CEO.
• Assistance to the Nodal Institution would be released by the industries Commissioner.
• After commercialisation, the innovator applies to the Industries Commissioner to avail the benefits such as venture capital assistance, marketing/publicity support and then applies to DIC for assistance under MSME scheme and Net VAT reimbursement etc.

Applications can be accessed here:

1. Application form for Approval of Nodal Institute
2. Application Form for Innovators’ for the Start-Ups/Innovation scheme
3. Recommendations of Screening Committee for Innovators’ to availing Assistance under Nodal Institutions for the Start-Ups/ Innovation scheme

Disbursement Procedure

Disbursement of the amount according to the decision of the SLIC, after receipt of the consent/claim by the applicant and subject to the availability of the fund.