The BJP government in the centre, under the Start-up India Action Plan has certified 20 private organisations as incubators. The organisations thus named includes the likes of Nasscom and iSpirit among others. Before this decision, only government run start-up incubators, some 278 in number, were allowed to certify and recommend start-ups in the country. Incubators, as we have discussed in a previous article, are organisation that help a new business to get started and reach certain stage before it can leave the incubation. Under an incubator environment, the start-up is provided with all the basic facilities that are required to run a business like office space and equipment.
The decision has been welcomed by Nasscom’s Vice President Rajat Tandon. He said “There is a lack of right kind of incubators. We need to provide sector-specific services, which we are trying to do in our warehouses.” The government is trying to fulfil the gap that is there due to limited availability of incubators by engaging private organisations to provide direction to the young entrepreneurs. As reported by ET, the government has received 571 applications from start-ups that were interested in government’s plan of tax benefits for start-ups under the Start-up India Action Plan. But only 106 of the said applications has the required documents and only two of them managing to get approval of the tax benefit. With the mentorship of start-ups, the government hopes to increase this number. A senior government official said “We will make this list (of incubators) available to start-ups, so there is a wider base of incubators available to them to reach out to.”
The department of Industrial Policy and Promotion (DIPP) has formed a monitoring policy to check the success or failure of the policy thus implemented. The government, under the Atal innovation Mission, aims to create sector specific incubators along with 500 additional labs to promote start-up culture in the country.