Scheme for assistance for Start Ups/ Innovation: Sustenance Allowance

Description
The "Scheme for Assistance for Start Ups/ Innovation" is an umbrella scheme launched by the Industries and Mines Department, Gujarat under the Gujarat Industrial Policy. Effective from August 7th, 2020 to August 6th, 2025, it aims to drive economic growth by generating jobs, fostering competition, and introducing next-gen solutions. The component "Sustenance Allowance", provides financial relief to developers who have paid Stamp Duty on the purchase of land required for a new unit/project. The scheme is aimed at promoting new developments by reducing the financial burden on eligible projects during their establishment phase.

Exclusions
• Entities formed by splitting or restructuring an existing business are not considered startups under this scheme.
• Startups availing benefits under other startup schemes of the Government of Gujarat are ineligible.

Definitions
Startups (for the purpose of this scheme)
(Source: https://ic.gujarat.gov.in/documents/commondoc/2020/13-GR_02092020.pdf)

Innovative Project
An innovative project is a project that seeks to introduce new technology or make changes in the existing technology by implementing large and small, radical and incremental changes, resulting into the formulation of novel products, processes or services.
(Source: https://ic.gujarat.gov.in/documents/commondoc/2020/13-GR_02092020.pdf)

Mentor
(Source: https://ic.gujarat.gov.in/documents/commondoc/2020/13-GR_02092020.pdf)

Sustenance Allowance
Sustenance Allowance is a monthly assistance provided to approved/sanctioned startups to meet the expenditure where they do not have any sufficient/adequate means of finance for their innovative project.
(Source: https://ic.gujarat.gov.in/documents/commondoc/2020/13-GR_02092020.pdf)

Benefits
• **Financial Assistance:** ₹20,000/- per month for one year based on eligibility. - **Encouragement for Women Entrepreneurs:** ₹25,000/- per month for startups with a woman co-founder.

Eligibility Criteria
1. - Any individual or group of individuals with an innovative idea or concept, recommended by an approved Nodal Institution, is eligible.
2. - The scheme is open to startups in any sector or branch of science, technology, engineering, agriculture, healthcare, etc., making it sector-agnostic.
3. Note: Startups availing benefits under the Student Startup and Innovation Policy (SSIP) are also eligible.

Application Process
Step 1: Startup Gujarat Cell
Office of Industries Commissionerate
Block No: 1, 3rd Floor, Udhyog Bhavan, Sector: 11, Gandhinagar - 382010 Gujarat, INDIA.
079-23252588 / 1800-233-0616
[email protected]
Online

Startup Gujarat Cell
Office of Industries Commissionerate
Block No: 1, 3rd Floor, Udhyog Bhavan, Sector: 11, Gandhinagar - 382010 Gujarat, INDIA.
079-23252588 / 1800-233-0616
[email protected]

Required Documents
•  Pitch presentation with following details:
• Problem statement
• Objective for the startup or innovation
• Description of product/ service
• How does it work?
• USP/Uniqueness of the product/service
• Target market and customers
• Competition analysis – key competitors, advantage of product/ service over
• competition etc.
• Detailed project cost breakup
• Tentative action plan for the next 3-5 years
• Revenue projections for the next 3-5 years
•  Technical feasibility/ product testing report / certification (if any)
•  Financial feasibility report / certification (if any)
•  Evaluation matrix by Nodal Institution
•  Recommendation form by Nodal Institution (revised format is attached for reference)
•  Undertaking

Frequently Asked Questions
Q: What is the objective of the "Scheme for Assistance for Start Ups/ Innovation"?
A: The "Scheme for Assistance for Start Ups/ Innovation" is an umbrella scheme launched by the Industries and Mines Department, Gujarat under the Gujarat Industrial Policy. Effective from August 7th, 2020 to August 6th, 2025, aims to drive economic growth by generating jobs, fostering competition, and introducing next-gen solutions.

Q: What is the "Sustenance Allowance" component?
A: The component provides financial support to startups to cover operational expenses, offering [?]20,000-[?]25,000 per month for one year.

Q: Who is eligible for this component?
A: Individuals or groups with innovative ideas or concepts, recommended by an approved Nodal Institution, are eligible to apply for the scheme.

Q: What is the amount provided to startups under this scheme?
A: Startups are provided with [?]20,000/- per month, and those with at least one woman co-founder receive an enhanced allowance of [?]25,000/- per month.

Q: Is the scheme limited to specific sectors or industries?
A: No, the scheme is sector-agnostic and supports innovative projects in any sector, including science, technology, engineering, agriculture, and healthcare.

Q: Can a startup avail of benefits from multiple schemes simultaneously?
A: Startups that are already availing of incentives under other startup schemes of the Government of Gujarat, except the Student Startup and Innovation Policy (SSIP), are not eligible for this scheme.

Q: What is the duration of the financial assistance under the scheme?
A: The financial assistance is provided for a maximum duration of one year.

Q: What is the role of the Nodal Institution in this scheme?
A: The Nodal Institution evaluates, validates, and recommends the startup's project proposal to the Office of the Industries Commissioner for approval.

Q: Are startups formed by restructuring existing businesses eligible for this scheme?
A: No, startups formed by splitting up or reconstructing an existing business are not considered eligible under this scheme.

Q: Can a startup with a woman co-founder receive a higher allowance?
A: Yes, startups with at least one woman co-founder are eligible to receive [?]25,000 per month instead of [?]20,000.

Q: How can a startup apply for the Sustenance Allowance Scheme?
A: Startups can apply by registering on the designated online portal, submitting their project proposal to a Nodal Institution, and following the application procedure outlined in the scheme.

Q: How is the sustenance allowance disbursed to eligible startups?
A: The sustenance allowance is disbursed monthly to eligible startups after approval by the State-Level Empowered Committee (SLEC).