Rajasthan Startup Policy

Rajasthan, a nurturing ground for entrepreneurship, has produced some of the world's most successful business leaders and large industrial houses. Yet, numerous young graduates leave Rajasthan seeking better opportunities elsewhere. The Rajasthan Startup Policy aims to develop low-cost, innovative, and technology-driven solutions to tackle the State's pressing challenges such as water scarcity, agriculture, arid land, rural healthcare, food processing, and efficient supply chains, while also boosting entrepreneurship. In this article, we delve into the details of the Rajasthan Startup Policy.

Targets of the Policy

The primary objectives expected to be met by the Policy are:

Support and incubation for 500 innovative startups.
Establishment of 50 incubators or incubator-like organisations.
Facilitation of 100,000 Sq. Ft. of incubation space.
Cultivation of an innovation and problem-solving culture statewide.
Mobilisation of Angel and Venture Capital amounting to INR 500 Crores for startups.

Focus Areas of the Policy

The Policy concentrates on the following key areas:

Social and Cleantech: Enhancing rural services and infrastructure, addressing water and sanitation issues, promoting crafts, renewable energy, and healthcare, alongside asset-light models of healthcare delivery and medical devices.
Information and Mobile Technology, including crowdsourcing, funding, and online financial services.
Internet of Things (IoT), electronics, and hardware.
Applications of "IT for X" in crafts and garments, mining, and SME manufacturing and services.
Disruptive ideas or technologies in any sector.

The Science and Technology Department, GoR, in collaboration with RIICO and Startup Oasis, aims to create the Rajasthan Startup Village and an e-Platform. This platform will support startups via cloud hosting, MOOCs, and coordination with State and Central Government agencies to further invigorate the startup ecosystem in Rajasthan.

Eligibility

The Rajasthan Startup Policy applies to:

Individuals or groups with innovative ideas or concepts qualifying for support under the Policy.
Rajasthan's university students from institutions affiliated with Rajasthan Technical University, Rajasthan University, NITs, IITs, and other private universities.
Universities, Educational Institutions, R&D Institutions, Incubation Centers, or Private and other entities approved by the Committee to support and mentor startups.

Startup Support

Support offered by the State Government of Rajasthan includes:

Assistance for Startups at Prototype Stage

INR 10,000 per month as a sustenance allowance for a year, contingent on Nodal Institution recommendation and Committee approval.
Access to mentoring services and free use of laboratories, facilities, and more provided by incubators.
Government facilitation of free access to Universities, Libraries, Government Laboratories, Centers of Excellence, PSUs, and more for selected startups.

Assistance for Startups at the Pilot Stage

Marketing and commercialization support of up to INR 10 Lakhs for product/service launch:

Startups securing a minimum of 25% funding from registered angel/venture funds or reputed incubators can receive this support as grants, soft loans, or equity based on specific cases.
Matching assistance to reputed incubators associated with institutions like IITs, IIMs, or NITs, provided in forms similar to grants, loans, or equity.

Tie-up for other Assistance at the Pilot Stage

Assistance in sourcing Venture Capital from Angel Investors or Venture Capital Funds.
Access to benefits under various Government schemes from India or Rajasthan.

Student Entrepreneurship Support

Support for students aspiring to entrepreneurship in Rajasthan:

Incubator-applied students gain 5% grace marks and 20% attendance per semester, subject to institutional approval.
Innovation projects can be converted into final year projects for credit, provided they are incubated at an approved center.
Entrepreneurial students can opt for a one-year Gap Year after the first academic year to pursue ventures full-time, extendable to two years, with continuity assured by the incubating entity.
Establishment of Entrepreneurship Cells (E-Cells) in colleges to foster awareness and support, with an initial INR 10 Lakhs grant to operate and sustain these cells.
A State Business Plan Competition, awarding INR 50,000 to each of the top 50 ideas from across the state, organized by the Nodal Institution.

Incubation Support

Assisting Incubators in Rajasthan with:

Host Institutes

Encouraging reputed technology, management, and R&D institutes to set up new Incubators and Accelerators, provided with up to INR 50 Lakhs for entrepreneurship development and startup programs.

Support by Private Players

Grants of up to 25% capped at INR 50 Lakhs for creating fixed assets and new incubation centers offered annually, with a maximum of two grants per district.

Support for Accelerator Programme

Up to INR 10 Lakhs grants for competent institutions to operate Accelerator Programs, with angel investors registered with SEBI or reputed bodies.

Startup Fests

Organizing Major and Mini Startup Fests within the State to boost visibility and connect startups with national and international ecosystems.

For more insights into regional startup policies, explore the Madhya Pradesh Incubation and Startup Policy or the Tamil Nadu Startup Policy. Additionally, learn how the Kerala Student Startup Policy and Uttarakhand Startup Policy are shaping new ventures in their respective regions.

Back to Learn

Frequently Asked Questions

Common questions about Rajasthan Startup Policy.

The principal targets of the Rajasthan Startup Policy include supporting and incubating 500 innovative startups, establishing 50 incubators or incubator-like organizations, facilitating or developing 100,000 sq. ft. of incubation space, promoting an innovation and problem-solving culture throughout the state, and mobilizing angel and venture capital of INR 500 crores for startups.

The critical focus areas of the Rajasthan Startup Policy include social and cleantech (rural services, water, sanitation, renewable energy, healthcare), information and mobile technology, Internet of Things (IoT), electronics and hardware, IT for sectors like crafts, garments, mining, and SME manufacturing and services, as well as disruptive ideas or technologies in any sector.

The policy applies to individuals or groups with innovative ideas, students from institutions and colleges in Rajasthan, universities, R&D institutions, incubation centers, and private establishments approved by the committee to support and mentor startups.

At the prototype stage, startups recommended by the nodal institution and approved by the committee can receive INR 10,000 per month as a sustenance allowance for a year, free access to incubators' facilities and mentoring, and recommended access to universities, libraries, government labs, and more.

For the pilot stage, startups can receive up to INR 10 lakhs for marketing and commercialization assistance, either as grants, soft loans, or equity, based on securing funding from registered angel/venture funds or reputed incubators or through matching assistance to reputed incubators.

Student entrepreneurs and teams accepted by incubators can receive 5% grace marks and 20% attendance, convert their projects to final year projects, take a gap year of up to 2 years to work on their ventures, and benefit from entrepreneurship cells (E-Cells) set up in colleges with a one-time grant of INR 10 lakhs.

Host institutes like technology, management, and R&D institutions in Rajasthan can receive a one-time grant of up to INR 50 lakhs to set up new incubators and accelerators, while private players can get a grant of up to 25% (maximum INR 50 lakhs) for creating incubation centers.

Competent institutions like incubators, angel investors, and government-approved incubation centers can receive a grant of up to INR 10 lakhs to operate accelerator programs in the state.

The policy aims to develop a Rajasthan Startup Village and an e-Platform to host cloud servers, run MOOCs, and coordinate with government agencies to strengthen the startup ecosystem. It also plans to organize a state-wide business plan competition and startup fests to promote visibility and networking opportunities.

The overarching goal of the Rajasthan Startup Policy is to develop low-cost, indigenous, and technology-enabled solutions to address various challenges faced by the state, such as water availability, agriculture, arid land, rural healthcare, food processing, and efficient food supply chains, while simultaneously boosting entrepreneurship.