SPIRE Punjab 2016investpunjab.gov.in/Content/documents/Startup_Policy_Punjab_v4.pdf · Vision ... witnessed several success stories of new age entrepreneurs from the region like Flipkart,

Draft for discussion

P a g e 1 | 16

SPIRE Punjab 2016

Startup Program for Innovation, Research

andEntrepreneurship


P a g e 2 | 16

Table of Content

1. Preamble ..............................................................................................................4

2. Definitions ............................................................................................................5

3. Vision ....................................................................................................................7

4. Mission .................................................................................................................7

5. Objective ..............................................................................................................7

6. Proposed Activities ...............................................................................................8

6.1 Industry-Academia Partnership and Incubation ........................................................................ 8

6.1.1.Establishment of sector specific incubators ....................................................................... 8

6.1.2. Harnessing existing incubator setup ................................................................................ 10

6.1.3. Creation of incubators and accelerators in PPP mode .................................................... 10

6.1.4. Creation of common infrastructure and co-working spaces .......................................... 11

6.1.5. Collaboration with Accelerators ....................................................................................... 11

6.1.6.Encouraging underserved sections of the society............................................................ 11

6.1.7. Startup Fests ...................................................................................................................... 11

6.2 Capacity Building ....................................................................................................................... 12

6.2.1. College Innovation Hubs ................................................................................................... 12

6.2.2. Innovation Challenge ........................................................................................................ 12

6.2.3. Innovation Camps ............................................................................................................. 12

6.3. Funding Support and Finance .................................................................................................. 12

6.3.1. Startup Fund ...................................................................................................................... 13

6.3.2. Alignment of CSR funds .................................................................................................... 13


P a g e 3 | 16

6.4. Regulatory Facilitation ............................................................................................................. 14

6.4.1. Startup Portal .................................................................................................................... 14

6.4.2. Self-Certification ................................................................................................................ 14

6.4.3. Assistance in Filling Patent ............................................................................................... 14

7. Implementation Structure ................................................................................ 15


P a g e 4 | 16

1. Preamble

In line with the Government of India’s initiative of Startup India, Government of Punjab is making

targeted efforts to create an eco-system wherein entrepreneurs can attain optimum potential.

Punjab is well-known for its entrepreneurial spirit and a testament of this spirit are - the well-

established h companies like Cremica, Hero, Vardhman, Trident, Nahar, etc. Punjab was in fact

the brewing ground for one of India’s first private sector startup accelerator – Morpheus which

successfully incubated 80 startups including Common Floor, Practo, Akohsa, etc. The State has

witnessed several success stories of new age entrepreneurs from the region like Flipkart, Jugnoo,

Pumpkart, iScuella, uTrade, Edurev, etc.

Now, to keep up the growth momentum, there is a need to build a strong eco-system for

nurturing innovation and Startups.State Govt. intends to connect all the leading institutes

including ISB, IIT Ropar, IISER, NABI etc. with the large number of entrepreneurs and global

network of venture capital, angel funds and mentors. Time is also ripe for accelerating the state’s

handholding in not only digital/technology sector but also other fields like manufacturing,

healthcare, agriculture, tourism etc.

Realizing the potential, the ‘Startup Program for Innovation, Research and Entrepreneurship’

(SPIRE-Punjab 2016) is being launched.

This document tries to build on the achievements of the past for a better future. It envisions a

mission driven approach in an effort to provide a congenial environment for entrepreneurs with

liberal policies for the overall progress of the state and encouragement ofresearch, innovation

and enterprise.


P a g e 5 | 16

2. Definitions

1. Accelerators: Accelerators are programs (entailing seed investments) of durations

ranging from 6 weeks to 12 weeks for accelerating an early stage start up through

intensive and structured mentoring.

2. Angel Investors: Investors who provide early stage seed funding to start-ups or

entrepreneurs. This can be in the form of one-time injection of seed money or

ongoing support to carry the company through commercial operations. Typically, the

Angel Investors invest their own funds into start-ups. The angel investor should be

registered with SEBI or banks or reputed institutions like IITs/IIMs/NITs etc. or DST of

GOP/GOI approved incubation centres.

3. Host Institutes: Host Institutes are reputed Universities, technology, management,

academic and R&D institutes of the State and other institutions and organizations

focusing on entrepreneurial development and promotion by setting up incubators

and accelerators to gel with the start-up eco system in the state.

4. Incubator: Incubator is any organization designed to accelerate the growth and

success of start-ups through an array of business support resources and services like

physical space, capital, mentoring, common services and networking etc.

5. Initial Stage: It is a stage where the start-up has developed a basic product with key

features culminating into the final product.

6. Innovation: Innovation is the process of introducing new technology or making

changes with updated technology, to products, processes, and services that yield new

results.

7. Nodal Institution: Nodal Institution for the implementation of the start-up policy shall

be Punjab Infotech (Punjab Information & Communication Technology Corporation

Limited).

8. Pilot Stage: It is a stage where minimum required capacity system is designed to start

production of the desired product, which can be subsequently enhanced to

commercial production level.

9. Punjab Pollinator: A not-for-profit SPV promoted by Punjab Infotech, registered under

Section-8 of the Companies Act, which will act like the main aggregator of the

network connecting start ups to incubators, accelerators, mentors, academics,

venture capital funds, angel investors and trainers. It will also be the sole owner of

the SPIRE/Pollinator portal.

10. Start Up: An entity that develops a business model based on some innovation and

translates it for commercial success with registered office in Punjab.


P a g e 6 | 16

11. Venture Capital Funds: Investment funds that manage money from investors seeking

equity stakes in start-up and small and medium – size enterprises with strong growth

potential.


P a g e 7 | 16

3. Vision

To transform Punjab into a vibrant society of global repute with a focus on creating enhanced

entrepreneurial opportunities, better livelihood, employment opportunities and enabling good

governance by promoting innovation, research enterprise through digital transformation.

4. Mission

Our Mission is to:

Develop a world class ‘Enterprise Ecosystem’ in the State pioneering in research and

innovation

Nurture and train new enterprises every year

See 1,000+ successful enterprises every year employing 5,000+ persons

Provide a platform to budding local entrepreneurs to pitch their business ideas to mentors,

investors and financial institutions

Build Pollinator as an umbrella body to integrate various ongoing efforts of different

departments/ institutions of the State to support Startups and young entrepreneurs

5. Objective

The target laid out for SPIRE Punjab to be accomplished by 2021 are:

Develop 10 top class start up hubs and bring in place 3 world class accelerators to support

the efforts

To make available 50,000 sq. ft. incubation space for start ups

Supportive institutional framework for the purpose

Optimum utilisation of institutional infrastructure available in the state

To attract Angel Investment and mobilize Venture Capital of Rs. 1,000 crores, leading to an

investment of Rs. 2,000 crores by Startups in the next 5 years

The focus sectors are Agriculture and Food Processing, Digital Manufacturing, Aerospace and

Defence, Low Carbon Economy, Lifesciences, Healthcare, Education, Tourism, IT & ITeS, Skilling

and any innovative idea/ technology as approved by the State Government.


P a g e 8 | 16

6. Proposed Activities

The “SPIRE Punjab, 2016” centers itself on the following pillars, viz.:

I. The Punjab Pollinator Industry-Academia Partnership and Incubation

II. Capacity Building

III. Funding Support and Finance

IV. Regulatory Facilitation

Various activities to be rendered under these pillars are listed in the subsequent sections of this

Policy document:

6.1 Industry-Academia Partnership and Incubation

For all-inclusive growth, Industry and Academia need to walk hand-in-hand. Academic

Institutions act as the breeding grounds for new ideas and by providing necessary support, they

can catapult a simple idea to a new innovation. On the other hand, Industry is aware of the

market challenges and can provide reality checks to the young entrepreneurs and with their

expertise and experience they can help young entrepreneurs mold raw ideas to marketable

products. The State Government intends to bring together the new ideas of the academia and

the expertise of the industry on the same level.

6.1.1. The Punjab Pollinator – Infotech

Start-up Program for Innovation, Research and Entrepreneurship (SPIRE) Mission

Invest Punjab proposed a dedicated program called Start-up Program for Innovation, Research

and Entrepreneurship (SPIRE) for encouragement and promotion of entrepreneurship amongst

youngsters of Punjab. To make the process of starting a Start-up appear simple to the young

aspirants wishful of starting a business, a well-defined Eco-System has been designed.

Pollinator

Industry

Investors

Accelerators

Incubators

Mentors

Academia

Associations


P a g e 9 | 16

Under the SPIRE mission, a SPV called Pollinator shall be formed by Punjab Infotech (PSU of

Department of Industries & Commerce, Government of Punjab) and Indian School of Business,

Mohali and EDC Chandigarh as founders. Pollinator shall act as the hub connecting all spokes of

the eco-system with the Government & new Start-ups. The nodal agency for the Pollinator shall

be Punjab Infotech (PSU of Department of Industries & Commerce, Government of Punjab).

Structure of proposed State Startup Mission

Roleof the various stakeholders is briefly given below:

Academia: Leading institutes such as ISB Mohali, IIT Ropar, NABI Mohali, PBTI etc. offers

dedicated infrastructure and mentoring services to nurture Startups. For example: ISB has D-

Labs, a design led incubator, which provides incubation services, large industry network and

advisory services to local Punjab based startups. ISB Hyderabad, has also done a similar tie up

with Govt of Telangana, wherein T-Hub has been launched as a joint initiative.

Industry, as Angel Investors: Key home grown successful industrialists such as Mr. Sunil Kant

Munjal Chairman Hero MotoCorp, Mr. Sunil Bharti Mittal Chairman Bharti Airtel, Mr. S.P. Oswal,


P a g e 10 | 16

Chairman Vardhman Group, Mr. Rajinder Gupta, Chairman Trident, Mr. K.S. Bhatia, CEO

Pumpkart etc. shall be roped into play a crucial role of angel investors alongwith mentoring of

young companies.

Venture Capitalist/Private Equity Funds/Financial Institutions: VC’s, FI’s and PE funds including

ICICI Bank, Catamaran Ventures, Accel Partners, Softbank, Matrix Partners etc shall be roped to

bring in the additional funds or equity support to enable easy access to finance.

Government: Govt. of Punjab shall earmark Rs. 100 Cr. which further shall be given to the

identified host institutes as one time support for infrastructure augmentation and capacity

building to develop and successfully run the incubators.

6.1.2. Establishment of sector specific incubators

In order to provide impetus to entrepreneurship in the focus sectors for development, State

Government of Punjab would encourage setting up of sector specific incubators. In the initial

stage, these incubators would be set up in the four sectors viz. Digital manufacturing,

Lifesciences (Biotechnology), Agro &Food Processing and Information Technology.

Government of Punjab would encourage setting up of these sector specific incubators in and

around the existing and envisaged industry clusters in the State.

6.1.3. Harnessing existing incubator setup

The State Government will co-operate with Host Institutions of existing Incubators to provide

space to applicants. The Nodal Institution would study the existing models of Incubation/Startup

centres across various locations and develop recommendations on the facilities and shared

infrastructure to be developed.

The State Government will assist existing institutions to set up incubation facilities.

6.1.4. Creation of incubators and accelerators in PPP mode

The State Government would encourage creation of new incubators and accelerators in PPP

mode to leverage the funding support from Government and expertise of the private sector

companies.


P a g e 11 | 16

6.1.5. Creation of common infrastructure and co-working spaces

Government of Punjab would facilitate creation of adequate support infrastructure for boosting

innovation ecosystem. Such infrastructure would be created across different sectors in all

districts in Punjab and would comprise of components such as:

Ready-to-use office spaces

R&D and testing labs

Software and hardware solutions

Services such as legal, accounting,HR, IPR, etc.

Facilities such as internet connectivity, electricity, water, security, etc.

6.1.6.Collaboration with Accelerators

Government of Punjab in collaboration with accelerators would institutionalize an accelerator

program to provide mentorship support to early stage Start-ups. This measure would enable the

Start-ups to validate their business idea and prepare for their first round of funding. The program

would be driven by a handpicked panel comprising of members from industry, accelerators,

academia and Government of Punjab. The program would support the Start-ups get access to

mentorship, funding and markets.

6.1.7. Encouraging underserved sections of the society

Under the Policy, Government of Punjab would encourage women, minorities and rural populace

of the State to build awareness and participate in entrepreneurship. For the same, Government

Departments including

Social Security and Development of Women and Children;

Welfare of SCs & BCs;

Rural Development and Panchayats;

Employment Generation and Training;

Technical Education and Industrial Training;

Urban Local Bodies;

Industries and Commerce

would introduce specialized courses in skilling and entrepreneurship development.

6.1.8. Startup Fests

A Startup Event shall be held in the State to highlight and reward success stories from the region

and to provide a platform for Startups to pitch their ideas on a larger stage. Successful

entrepreneurs, top business leaders and subject matter experts, shall be invited to participate

and share tips and ideas with the upcoming entrepreneurs.


P a g e 12 | 16

6.2 Capacity Building

In order to develop a self-sustaining and flourishing Startup ecosystem, it is essential to

encourage students to innovate by inculcating a sense of curiosity, reasoning and self-learning.

Thus creating a strong human capital force in the form of innovators and entrepreneurs. The

State Government intends to support young minds with innovative ideas through various

programs and rewards.

6.2.1. Role of Pollinator in Capacity Building

In the present times, ion absence of any common platform, a start-up is usually seen struggling

with finding a suitable physical space to work in, mentors to seek guidance from and angel

investors to seek initial financial support from. In the same way, academic institutes, incubators,

industry and venture capitalists find it difficult to spot the right innovative idea that they can help

nurture and then commercialise. This is the vacuum that Punjab Pollinator seeks to ____. The

pollinator will act as an aggregator and resource base for all the research and development labs,

libraries, incubators offering physical space, mentors, trainers, venture capitalists, angel

investors, financial institutions like SIDBI, ICICI, Yes Bank, etc., and help in the cross fertilization

of ideas. All these pillars will get a common space to derive the best resources from.

6.2.2. College Innovation Hubs

College Innovation hubs shall be set-up in collaboration with established incubators in

professional colleges to promote entrepreneurship amongst students and support innovative

ideas providing initial guidance and hand-holding support. They shall also be provided

information and support regarding available State & Central schemes, incentives and grants.

6.2.3. Innovation Challenge

To identify and promote innovative business solutions to day-to-day problems, a state-wide

business plan competition shall be organized. Students from schools (Class 8 onwards) and

colleges shall be eligible to participate.

6.2.4. Innovation Camps

To promote the spirit of entrepreneurship amongst students, winter and summer camps shall be

held in schools and colleges. The camps shall have speakers including successful Startup

founders, VC/PE founders, and other industry leaders.

6.3. Funding Support and Finance

The Government intends to utilize its corpus fund by supporting setting up of new incubators

and introduction of innovative programs to promote entrepreneurship in the State.


P a g e 13 | 16

6.3.1. Startup Fund

The government will create a corpus of 100 Cr. (1 Billion) for entrepreneurs in the nature of Fund

of Funds.The fund will be utilized to support establishment of pilot incubators and capacity

building programmes run by Host Institutes.

6.3.2. Alignment of CSR funds

The CSR funds available to be mobilised for industrial development in the state will also be

aligned to the cause of promoting the startups, to create attractive ambience for startup

operations. SPIRE Punjab will be the nodal agency for linking CSR to the incubation/acceleration

of startups and related institutes in Tier II and Tier III cities as well.


P a g e 14 | 16

6.4. Regulatory Facilitation

The Government shall primarily act as a collaborator bringing together all the concerned

stakeholders of the startup ecosystem. The collaboration shall be done online through an

interactive Startup Portal and offline through workshops, meetings and sessions. To further ease

the regulatory burden, Government of Punjab shall allow self-certifications for Startups in-line

with Government of India’s Startup Plan.

6.4.1. The Punjab Pollinator Portal

A portal shall be rolled out by the Government of Punjab which shall provide a single interface to

the Startups to interact closely and effectively with other stakeholders in the ecosystem. The

portal will link up all the incubators within the State and encourage sharing of ideas and

discussion among budding entrepreneurs. The portal shall be supplemented by a mobile app

providing access to information to the Startups on the go. The portal shall be created, hosted

and managed by Punjab Infotech.

6.4.2. Self-Certification

In line with the decisions taken by Govt. of India, the Startup in Punjab would be permitted to file

self-certifications in prescribed formats under the following 7 acts.

The Factories Act 1948

The Maternity Benefit Act 1961

The Shops & Commercial Establishments Act, 1960

The Contract Labour (Regulations & Abolition) Act 1970

The Payment of Wages Act, 1936

The Minimum Wages Act, 1948

The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

In addition, self-certification and professional verification as per State Government Rules &

Policies shall be applicable. At present these are:

CTE/CTO under Water Act 1974 and Air Act 1981

The Boilers Act 1923

Chief Electrical Inspection

6.4.3. Assistance in Filling Patent

In collaboration with Punjab State Council for Science and Technology, Government of Punjab

will help in facilitating filling of patents for Startups via the Intellectual Property Rights

Facilitation Cell.


P a g e 15 | 16

7. Implementation Structure

It has been envisaged that the Nodal Agency i.e. Punjab POLLINATOR should function in an

autonomous manner. This Nodal Agency shall be a Non Profit Company as per Section-8 of the

Companies Act 2013 and shall be a wholly owned subsidiary of Punjab Infotech with a registered

office in Chandigarh.

The grant of Rs. 100 crores allocated under the Budget for SPIRE program will be placed at the

disposal of Punjab Infotech under the administrative control of the Industries and Commerce

Department. The CEO of the Punjab Bureau of Investment Promotion will be CEO of the

Pollinator and MD, Punjab Infotech will be the Additional CEO.

There shall be Executive Committee which shall be responsible for the Policy Implementation and

to guide the CEO, Punjab Pollinator, in discharging his duties on a regular basis.

The committee would have representation from all relevant incubators/ accelerators, apex

educational institutes, regulatory authorities such as SIDBI, industry bodies such as CII, FICCI,

TiEetc.

The term of each non official member of the executive committee including the Chairman shall

not be more than 5 years.

Meetings: The Executive Committee shall meet at least once a quarter and the proposals

alongwith the policy will be reviewed by the members annually.


P a g e 16 | 16

End of Document

Documents

SPIRE Punjab 2016investpunjab.gov.in/Content/documents/Startup_Policy_Punjab_v4.pdf · Vision ... witnessed several success stories of new age entrepreneurs from the region like Flipkart,