Chandigarh: The Haryana Cabinet, which met under the chairmanship of Chief Minister Nayab Singh Saini here today, approved a comprehensive supplement to the existing Haryana State Startup Policy 2022, aimed at further strengthening the startup ecosystem in the State, encouraging innovation and entrepreneurship, expanding participation of women in startups and providing enhanced financial and institutional support to budding entrepreneurs.
The supplement has been formulated in view of various announcements made under the Sankalp Patra, the Budget Speech for FY 2025-26, directions of the Industries and Commerce Minister and announcements made by Chief Minister Nayab Singh Saini at various state-level programmes and interactions with startups and industry leaders. The objective is to widen participation under the policy and provide more effective support to startups at different stages.
Under the expanded framework, women-led startups will be eligible for a 50% lease rental subsidy for one year, subject to a maximum of ₹10 lakh. Women-led startups will also receive 100% reimbursement of Net SGST for a period of seven years, subject to the limit of 100% of Fixed Capital Investment (FCI). For general startups, 50% reimbursement of Net SGST will continue for a period of seven years.
The approved supplements also provide assistance of up to ₹10 lakh for technology licensing/technology transfer to startups. In addition, women-led startups working in areas such as handicrafts and traditional textiles, environment-friendly rural products, Ayurveda-based health and wellness products, and indigenous food products will be encouraged through thematic micro-grants ranging from ₹50,000 to ₹1 lakh.
To provide startups with greater market access, financial assistance will be provided for participation in domestic events and exhibitions. General startups will be eligible for assistance of up to ₹5 lakh per year, while women-led startups will be eligible for assistance of up to ₹7 lakh per year towards participation costs.
The government has also introduced provisions to encourage startups to adopt quality standards and obtain certifications. Startups will be eligible for one-time reimbursement of 50% of the cost incurred for obtaining quality certification, subject to a maximum of ₹25 lakh.
To promote innovation and entrepreneurship at the school level, 10,000 ‘Do-It-Yourself’ (DIY) kits will be distributed among students. A world-class incubator, H-HUB, will also be established in Haryana. The incubator will be developed in collaboration with leading startups, corporates and educational institutions of the state and will provide startups with modern facilities and the necessary support to scale their ventures.
To create more opportunities for startups in government procurement, the Haryana Government will reserve 10% of its annual departmental procurement for eligible Haryana-based startups. In addition, corporates operating in Haryana will be encouraged to undertake pilot projects with state-based startups. For this purpose, a matching grant of up to ₹10 lakh will be provided, subject to the condition that the concerned corporates convert such pilot projects into contracts with the startups.
To promote private investment in startups, the government will provide co-investment or matching grants of up to ₹25 lakh for every ₹25 lakh raised from a private or angel investor under the Seed Fund Matching provision.
To strengthen the link between young talent and startups, students pursuing various courses in state universities and polytechnic institutions will be encouraged to undertake apprenticeships with startups. Eligible startups will receive reimbursement of 50% of the stipend cost, up to ₹7,500 per apprentice per month, subject to a maximum of 50 apprentices per year per unit.
Keeping in view the growing requirement for cloud computing and data storage, the scope of reimbursement for cloud computing/storage expenditure has also been expanded. Haryana-based startups will now be eligible for 75% reimbursement of such expenditure incurred at any data centre located in India, up to ₹2.5 lakh per year for a period of five years.
Another important provision approved by the Cabinet provides that startups having their registered office in Chandigarh will also be considered as Category-2 startups, enabling them to avail the benefits available under the Haryana Startup Policy.
