JAMMU, FEB 22: The Administrative Council (AC) of Jammu and Kashmir, presided over by Lieutenant Governor Manoj Sinha, has given the nod to the J&K Start-up Policy 2024-27, supplanting the previous policy instituted in 2018. The new policy sets an ambitious target of establishing 2000 new start-ups within the region over the next five years.
Key Figures Present at the Meeting
The high-level meeting saw the attendance of notable figures including Rajeev Rai Bhatnagar, Advisor to the Lieutenant Governor; Atal Dulloo, Chief Secretary; and Mandeep Kumar Bhandari, Principal Secretary to the Lieutenant Governor.
Venture Capital Fund Establishment
Under the newly approved policy, the J&K government will establish a Venture Capital Fund amounting to Rs. 250 Crores, with an initial infusion of up to Rs. 25 Crores. This fund is earmarked to primarily invest in recognized start-ups within the region. Detailed modalities for the creation and utilization of this venture fund will be devised in consultation with the Finance Department.
Seed Funding Assistance
Furthermore, the policy includes provisions for seed funding assistance, offering one-time support of up to Rs. 20 lakhs (dispensed in 4 equal installments) to start-ups recognized by the Jammu and Kashmir Entrepreneurship Development Institute (JKEDI), the nodal agency for start-ups in the region. A cap of 25 start-ups per year has been set for seed funding, aligning with budget constraints and the desire to effectively support a manageable number of start-ups.
Commitment to Quality Growth
While the government aims to establish 2000 start-ups within three years, it prioritizes quality over quantity by providing seed funding to a carefully selected pool of start-ups. This approach, aimed at long-term economic growth, ensures efficient resource utilization.
Budgetary Allocations
The implementation of the Start-up Policy for a duration of three years will receive budgetary support amounting to Rs. 39.60 Crores.
Enhancing the Start-up Ecosystem
Recognizing the need to foster entrepreneurial talent and bolster the start-up ecosystem in Jammu and Kashmir, the government has revamped the existing policy to address contemporary challenges in the sector. Feedback from stakeholder consultations conducted by the Industries and Commerce Department has informed the policy revisions, particularly focusing on strengthening incubation and acceleration support for start-ups.
Monitoring Mechanism
The execution of the policy will be overseen by a High Powered Committee chaired by the Chief Secretary, with implementation duties entrusted to a Task Force Committee led by the Administrative Secretary of Industries & Commerce.
The approval of the Start-up Policy 2024-27 reflects the government’s commitment to fostering innovation, entrepreneurship, and economic growth in Jammu and Kashmir, paving the way for a vibrant and dynamic start-up ecosystem within the region.
