The Investment Division, along with the state-based startups, will organize annual entrepreneurship challenges and aim to select the 50 startups every year for the five years of the policy period to provide grant-in-aid support and offer pre-incubation and incubation facilities. Each year, top ten winners shall be provided Rs. 5,00,000/- & offer for incubation and next forty winners shall be provided Rs. 4,00,000/- and offer for pre-incubation, based on established selection criteria, including a minimum qualification criteria.

Under the Govt. India’s SISFS, seed fund to an eligible startup by the incubator shall be disbursed for up to Rs. 20,00,000/- as grant for validation of proof of concept (PoC), prototype development or product trials. The grant shall be disbursed in milestone-based investments as per the applicable guidelines. Investment division shall provide support to eligible incubators and startups to apply for this grant.
For startups who will not be accommodated under SISFS, one-time fiscal support will be provided by the State Government to the eligible startup as grant for validation of proof of concept (PoC), prototype development or product trials, for up to 100% of the capital expenditure towards the cost of the production for the proof of concept subject to a limit of Rs. 10,00,000/-.

In order to promote research-led innovation in the State, Research and Development (R&D) Incentives will be provided to eligible startups for up to 50% of capital cost of research expenses subject to a limit of Rs. 5,00,000/-. The aim of the policy will be to provide this support to a total 50 no. of startups over the five years policy period.

The cost of filing and prosecution of patent application will be reimbursed to the eligible startups for up to 100% subject to a limit of Rs. 10,000/- per Indian patent awarded and up to 100% subject to a limit of Rs. 1,00,000/per international patent awarded. The aim of the policy will be to provide this support to a total 100 no. of startups for Indian patents and 50 no. of startups for international patents over the five years policy period.

The fee payable for obtaining BIS /ISO /CMMI /FSSAI /AGMARK /HALLMAPK /SILK MARK /ZED Certification etc. by eligible startups will be subsidized and one-time reimbursement will be provided for up to 100% of cost of certification, subject to a limit of Rs. 5,00,000/- per startup. The aim of the policy will be to provide this support to a total 100 no. of startups over the five years policy period.

One time grant of up to Rs. 1,00,000/- will be provided to startups that are fully domicile to the State, which will mean whose people, product, market and impact are confined within the State. This grant will be paid as partial reimbursement for lease rental for hired premises for a period of one year subject to strict scrutiny of the evaluation committees. Preference will be given to product-based startups who are using privately owned rental premises and reimbursement may include cost for power, internet, software license and cloud service. The aim of the policy will be to provide this support to a total 50 no. of startups over the five years policy period.

One-time recruitment incentive of up to Rs. 40,000/- will be provided to the eligible startups who will employ women and differently abled employees that are domicile to the State, for up to 40% of the cost towards the salary of such employment over a period of one year. This incentive will be provided after one year of such recruitment is completed and upon evidence of continuous employment and strict scrutiny thereupon. The aim of the policy will be to provide this support to a total 150 no. of startups over the policy period.

Under the Govt. India’s SISFS, seed fund to an eligible startup by the incubator shall be disbursed for up to Rs. 50,00,000/- as grant for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments, as per the applicable guidelines. Investment division shall provide support to eligible incubators and startups to apply for this grant. For startups who will not be accommodated under SISFS, and for products or initiatives that have proven potential for large scale employment generation or other similar parameters that Investment Division may deem to be highly beneficial for State, the cost of scaling up such products or initiatives will be partially reimbursed to eligible startups for up to 75% subject to a limit of Rs. 25,00,000/-, including the support for Proof of concept and the Idea Support grant, if applicable. This incentive may be utilized towards capital expenditure only for raw material purchase, marketing and other scaling up costs required for supporting the commercialization of products or services.

One-time digital upgradation subsidy will be provided as reimbursement tothe eligible startups towards procurement and upgradation of high- endcomputer, related hardware, relevant software, etc. subject to a limit of Rs.10,00,000/- per startup. Preference will be given to adoption of disruptive technologies such as AI, ML, blockchain, etc. – as defined by Startup India.The aim of the policy will be to provide this support to a total 25 no. of startups over the five years policy period.

Out of all goods and services that will be procured by Arunachal Pradesh Ministries/ Departments/ PSUs, at least 20% of such goods and services, if made available by startups, will be procured from eligible State- registered startups. This procurement will be made as per the provisions of the Public Procurement Policy for Micro and Small Enterprises (MSEs), as may be amended from time to time, where startups will be entitled to the same benefits as the MSEs.

To ease regulatory compliance for startups bidding for Government projects, all State-registered startups will be exempt from the criteria of prior experience, prior turnover, and submission of Earnest Money Deposit (EMD) and Bid Security. This will be as per the provisions of Amendment to the Rule 170(i) of General Financial Rules (GFR), 2017, as may be further amended from time to time.

The Startup India team has worked with Government-e-Marketplace (GeM) to enable the DPIIT Recognized startups to register and sell their products directly to the Government Departments. All Departments and PSUs are encouraged to procure goods and services from Startups through GeM Startup Runway wherever possible.

A Trial Order is an opportunity for a Startup to work on a trial order with the Government. These trial orders give the buyer an option to test waters and be sure while procuring never-before-seen products

Eligible startups will be exempted from the inspection under the following acts and the rules framed thereunder, barring inspections arising out of specific complaint. Startup will be permitted to file self-certification in prescribe format

1. The Building and Other Constructions Worker’s (Regulation of Employment and Conditions of Services) Act,1996 Arunachal Pradesh Startup Policy 2021 22

2. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act,1979

3. The Payment of Gratuity Act,1972

4. The Contract Labor(Regulation and Abolition)Act ,1970

5. The Employee’s Provident Fund and Miscellaneous Provision Act,1952

6. The Employee’s State Insurance Act,1948

The Investment Division will host workshops for State Department Officials from other Departments to sensitize them on the benefits of procurement from startups. The Investment Division will also host programs to promote procurement policy to other Government departments and PSUs. The promotional activities will include but not be limited to workshops for registration on the Government e-Marketplace (GeM), Buyer-Seller Meets, Demo or Showcase Days, Grand Challenges, Corporate Innovation Programs, and National or International Programs.