2000 new start-ups to be set up in 5 yrs in J&K under new policy

2000 new start-ups to be set up in 5 yrs in J&K under new policy

The Administrative Council, which met here under the chairmanship of Lieutenant Governor Manoj Sinha here on Thursday approved the J&K start-up policy 2024-27 in supersession to the Start-up Policy notified in the year 2018.

Under the new policy, 2000 new start-ups will be set up in Jammu & Kashmir in the next five years in order to nurture and inspire entrepreneurial talent of J&K by creating a vibrant and robust start-up ecosystem in the UT.

The Council also approved seven new industrial estates in J&K for the purpose.

Rajeev Rai Bhatnagar, Advisor to the Lieutenant Governor; Atal Dulloo, Chief Secretary and Mandeep Kumar Bhandari, Principal Secretary to Lieutenant Governor attended the meeting.

The Jammu & Kashmir government will set up a venture capital fund of Rs 250 crore and is expected to infuse a maximum of Rs 25 crore as an initial fund to this venture capital fund.

The venture capital fund so created will invest primarily in recognised start-ups of Jammu & Kashmir. The Department will work out detailed modalities for creation of the venture fund and its usage in consultation with the Finance Department.

The department may also work out a mechanism to facilitate allotment of land to start-ups having good potential for growth. There is also a provision of one-time assistance as Seed Funding up to Rs 20 lakh (4 equal instalments) to be provided to start-ups recognised by Jammu & Kashmir Entrepreneurship Development Institute (JKEDI) which is nodal agency for start-ups. For seed funding, there is capping of 25 start-ups per year which is a decision based upon available budget and the desire to support a manageable number of start-ups effectively.

”The government is committed to establishing 2000 start-ups in three years but by providing seed funding to a smaller number of carefully selected start-ups, the government can prioritise quantity over quality for long term economic growth.

”This will also ensure that the resources are utilised efficiently. The budgetary support for implementation of Start-up Policy for a period of three years will be Rs 39.60 crore,” said an official spokesman.

Implementation of this scheme in UT will be monitored by a High Powered Committee headed by Chief Secretary and implemented by a Task Force Committee headed by Administrative Secretary, Industries & Commerce. The policy entails providing entrepreneurship facilities to students, women and support to the entrepreneurs through Government/ Private/ High Net worth individuals for setting up start-ups.

The Administrative Council also accorded administrative approval for the development of seven new Industrial Estates in J&K spread over 5290 kanals of land for an amount of Rs. 304.51 crore.

The estimated investment in these seven new Industrial Estates is Rs 8700.16 crore with employment potential of 28,376 people. These 7 new Industrial Estates are situated at Banderpora Budgam, Sempora Medicity, Srinagar, Bhagthali, Kathua, Karandi, Samba, Trenz, Shopian, Hariparigam Tral Pulwama and Khunmoh, Pantha Chowk Srinagar.

New Industrial Estate Banderpora Budgam involving 64 kanals of State Land will be developed at an estimated cost of Rs 22.74 crore by Indian Railway Construction International Limited (IRCON). The Project would attract investment to the extent of Rs 78.12 crore and generate 735 employment opportunities.

The new Industrial Estate at Sempora Medicity, Srinagar involving 517 kanals of State land will be developed at an estimated cost of Rs. 22.60 crore by IRCON. The Project would attract an investment of Rs1825.45 crore and has employment generation potential of around 11,643.

The estate at Bhagthali, Kathua involving 2949 kanals of State Land will be developed at an estimated cost of Rs 83.13 crore by National Buildings Construction Corporation Limited (NBCC). The Project will attract investment of Rs 4,599.89 crore and has employment potential of approximately 8,278.

New Industrial Estate at Karandi, Samba involving 460 kanals of State/Private land will be developed at an estimated cost of Rs 34.45 crore by NBCC. The Project will attract investment of Rs 756.89 crore and has employment potential of around 3965 (approx.).

The estate at Trenz, Shopian involving 500 kanals of State land will be developed at an estimated cost of Rs 68.06 crore by NBCC. The Project will attract investment of Rs 850 crore and has employment potential of around 900 (approx.)

New Industrial Estate at Hariparigam Tral Pulwama involving 200 kanals of land will be developed at an estimated cost of Rs 28.17 crore by NBCC. The Project will attract investment of Rs 124.81 crore and has employment potential of around 2500 (approx.).

The estate at Khunmoh, Pantha Chowk Srinagar involving 600 kanals of land will be developed at an estimated cost of Rs 45.36 crore by IRCON. The Project will attract investment of Rs 465 crore and has employment potential of around 355 (approx.).