AP INNOVATION & START-UP POLICY

AP govt has placed on web its draft policy promoting innovation and startups in the new state. TePP Outreach centers established in ANU, Guntur and SPMV, Tirupath several years back are probably the only active incubators in the state.

Innovation policy is a part of blueprint on IT Policy and action plan inviting proposals to manage incubators at Visakhapatnam,  Kakinada and Tiruathi. 

Highlights:

• the objective is - an entrepreneur in every family,
• the incubator at Visakhapatnam is a 3 story building with 50,000 sq.ft.
• the fiscal incentives for IT promotion  include patent cost reimbursement to the companies having their headquarters in Andhra Pradesh, subject to a limit of Rs. 5 lakh (0.5 mil) per domestic patent awarded and Rs. 10 lakh (1 Mil) per international patent awarded. 
• The targets -100 Incubators & Accelerators, 5,000 Companies & Start Ups to be incubated, One million sft of Incubation Space to be developed, Venture Capital of Rs 1000 cr to be mobilized for Innovation.
• Colleges shall offer 20% relaxation in attendance and 5% Grace marks for those students who join an incubator,
• distribute Rasberry Pi & Start-up boxes to ignite the imagination of students,
• Innovation and Transformation academy would be established in Tirupati. 
• The government will create an Innovation Fund of Rs.100 crore (1 billion) for entrepreneurs and businesses. The Fund will be in the nature of Fund of Funds. It does not invest directly into startup companies. It shall paricipate in the Capital of Venture Capital Funds, upto 15%. The VC Fund in turn is free to invest in startups located in AP, basing on its own criteria. 
• Government would host a cloud sever that would connect all the incubation centers across the state. This server would be beneficial to all the start-ups at low or nominal costs. Based on the requirement, Government would procure Enterprise versions of key software required for testing and other purposes. These software and Labs can be utilised by the companies in the incubation space at low or nominal charges. 
• An empowered ‘Andhra Pradesh Innovation Council (APInC)’ would be formed with the representatives of industry and the other stakeholders.