Incentives for startups

1. Patent Filing Cost reimbursement

The cost of filing and prosecution of patent application will be reimbursed to the incubated start-up companies subject to a limit of Rs. 2 lakh per Indian patent awarded. For awarded foreign patents on a single subject matter, uptoRs. 10 lakhs would be reimbursed. The reimbursement will be done in 2 stages, i.e., 50% after the patent is filed and the balance 50% after the patent is granted.

2. Internet Bandwidth cost subsidy

Start-up will get reimbursement 100% of band-width cost till the starting of commercial production witha maximum ceiling of Rs. 40,000 per year.

3. Reimbursement of Power Charges

Start-up will get reimbursement of 100% of the actual Power Charges paid to the TSECL till the starting of commercial production or till 3 years whichever is earlier.

4. Support for POC

The Start-up need to demonstrate the POC (Proof of Concept) within three months.Once the POC is approved then the Start-up council will provide Subsidy upto 80% of the total cost of project but not exceeding Rs.10 Lakh.The Start-up council will review the progress on quarterly basis.

5. Marketing Development Support

Any entrepreneur who already has an innovative IT/ITeS product or a service which generates revenue but need the guidance & funding to scale-up business can apply for the scheme.The investor needs to provide the product road map and the revenue potential plan to the Start-up council.State Government will provide market development support through FICCI (Federation of Indian Chambers of Commerce and Industry), IITF (India International trade fare).

6. Recruitment Assistance

To promote Start-up industries, the government shall offer onetime recruitment assistance of Rs. 30,000 per employee of IT background involved in the core area of the project. This assistance will be applicablefor recruitment during the first yearonly andlimitedupto 5 employees per Start-up.

7. Assistance for Start-up Funding

The Government shall encourage banks and other financial institutions/Angel Investors/ to extend and enhance their lending facilities to Start-ups and set up dedicated desks for Start-ups in select branches for easy funding for commercialization and business expansion. The Government shall also encourage Angel Investors Network and various seed capital funding agencies to forge strategic partnership with industry/Start-up associations in the State.