Andhra Pradesh Innovation & Startup Policy
The State of Andhra Pradesh requires world-class scientific and technologically advanced ecosystems that could empower and enable its youth to carry out the fundamental duties for the country.
For the development of innovation, entrepreneurship and startup culture within the State, the Government of Andhra Pradesh has proposed to set up a mission for Innovation and Capacity Building.
This Mission has helped formulate the Andhra Pradesh Innovation and Startup Policy, which is based on Shared Infrastructure, Incubators/Accelerators, Human Capital, Funding and, most importantly, a system of Good Governance.
The policy provides a framework for strengthening innovation, entrepreneurship and startup activities across the State and aims to build an ecosystem that enables innovative ideas to become viable products and services.
“To create a world class ‘technology startup ecosystem’ by fostering ‘entrepreneurship and a culture of innovation’ which contributes to increased knowledge, wealth and employment in our society.”
Mission
Empowering First-Generation Entrepreneurs
To provide avenues for the first generation entrepreneurs, researchers, students, citizens, and the government to learn, collaborate, disrupt and transform their innovative ideas into prototypes of viable products and services of social relevance.
Targets of the Policy
Andhra Pradesh strives to achieve their collective dream of a new India where a new generation of software products would be manufactured and thereby create multiple effects in the growth of the State and the Nation along with employment creation and social transformation.
Through this Policy, the Government hopes to create an ecosystem that brings up an entrepreneur in almost every other family.
State Support
The Non Fiscal and Fiscal incentives applicable to every category of the IT industry would also be relevant to incubators, accelerators and startups. Along with this, the following support would be offered.
A highly powered Single Window Clearance Unit would be created and operationalised for granting various approvals and clearances to first-time and young entrepreneurs.
Allocation of spaces would be offered to incubators and startups on the basis of priority.
The Government encourages innovation among young entrepreneurs through Innovation Awards.
The Government offers to host a cloud server that could connect every incubation centre in the State of Andhra Pradesh.
Enterprise versions of critical software essential for testing and other purposes at an incubator would be procured.
A high-end FABLAB from MIT, Boston, USA would be set up at a Pilot Incubator to promote education in hardware manufacturing and developing prototypes of hardware products.
Startups would be eligible for 100% reimbursement of Stamp Duty, Transfer Duty and Registration Fee paid on sale or lease deeds on the initial transaction and 50% for the second transaction.
Startups would be eligible for 25% subsidy on electricity bills for INR 30 Lakhs or 3 years from the commencement date of commercial operations, whichever is earlier. Startups established by SC/ST and Women Entrepreneurs would be eligible for 50% subsidy for 5 years or INR 50 Lakhs, whichever is earlier.
New IT/ITES units would be entitled to complete exemption on Electricity Duty for 5 years after coming into commercial operations.
Patent filing expenses would be reimbursed to startups in Andhra Pradesh with a limit of INR 5 Lakhs per domestic patent and INR 10 Lakhs for an international patent.
Startup units would be eligible for reimbursement of 20% of expenses incurred for obtaining quality certifications for CMM Level 2 onwards with a limit of INR 5 Lakh.
Government would support IT Exporters Associations, ITsAP, NASSCOM, ELIAP, STPI, IEG and other organisations for conducting surveys and research on technology trends, market intelligence and other work essential to the IT industry.
The Government promotes participation in national and international events by the industry and through Government- industry business delegations.
A 50% subsidy on lease rentals with a limit of INR 5 Lakhs per annum for 3 years for eligible plug-and-play office spaces occupied by startups, MSMEs, first-generation technocrat entrepreneurs, ST, SC and women entrepreneurs.
50% reimbursement of rental cost for exhibition stalls for participation in notified national or international exhibitions, limited to a space of 9 Sq. Mt.
Assistance at the cost of INR 20,000 for a single IT professional employed within two years of establishing the startup unit.
Turnkey projects with an outlay of up to INR 5 Crores undertaken by Government Departments would be reserved for eligible MSMEs registered and operating in Andhra Pradesh.
MSMEs and startups recording a year-on-year growth rate of 15%, according to audited accounts, would be eligible to receive a grant of 5% on turnover.
Suo moto proposals based on the AP Blueprint for IT, Electronics and e-Governance sectors would be accepted from AP-based MSME IT or startup units. Selected units and startups would be awarded INR 50 Crores per annum.
A 20% subsidy on bandwidth for internet connectivity paid to an Internet Service Provider would be available for a period of two years from the date of starting commercial production or operation.
Governance of the Innovation Policy
APInC
The empowered Andhra Pradesh Innovation Council (APInC) has been formed with representatives from industry, incubators and other stakeholders.
APInC would be in charge of administering incentives in a speedy, time-bound and transparent manner.
Empowered Mission for Innovation & Capacity Building
An empowered Mission has been established for development of the sector and to take agile and faster decisions. The Mission is headed by a Technocrat with a record of promoting innovation in technology areas and includes experts, academicians and industry representatives.
AP Startup Policy
For More Details
Visit the official National Innovation and Startup Policy portal.