J&K Startup Policy Gets Panel Review for Operational Guidelines

The Jammu and Kashmir administration is taking a step forward in fostering a robust startup ecosystem within the Union Territory. A committee has been formed to examine the draft operational guidelines for the recently approved J&K Startup Policy 2024-27. This move aims to refine the policy's implementation strategy and ensure its effectiveness in supporting aspiring entrepreneurs.

Official Notification for Committee Formation

On May 27, 2024, the J&K administration issued an official order sanctioning the formation of a committee. This committee will be responsible for reviewing the draft operational guidelines for the J&K Startup Policy 2024-27.

The committee comprises the Managing Director of J&K Trade Promotion Organization, the Managing Director of J&K Entrepreneurship Development Institute (JKEDI), and the Deputy Secretary (DP) of the Industries and Commerce Department. As per the order, the committee has one week to submit its recommendations and report.

Key Highlights of the J&K Startup Policy 2024-27

Lieutenant Governor Manoj Sinha-led administration approved the J&K Startup Policy 2024-27 in February 2024. This policy aims to establish a dynamic startup ecosystem by fostering the creation of 2,000 new startups in J&K by 2027.

Here's a breakdown of the key highlights from the policy:

• Venture Capital Fund: The J&K administration plans to establish a dedicated Venture Capital Fund worth Rs 250 crore. The initial investment into the fund will be Rs 25 crore. The fund will primarily invest in recognized startups within Jammu and Kashmir.
• Seed Funding and Land Allotment: JKEDI will develop a mechanism for allocating land to promising startups. Additionally, recognized startups will be eligible for one-time seed funding assistance of up toRs 20 lakh disbursed in four installments. This funding will be capped at 25 startups per year to ensure effective support while considering budgetary constraints.
• Implementation and Monitoring: A high-powered committee led by the Chief Secretary will oversee the overall progress of the scheme. Additionally, a task force committee headed by the Administrative Secretary of Industries and Commerce will monitor the day-to-day implementation of the policy. The total budgetary allocation for implementing the startup policy over the next three years is set at Rs 39.60 crore.

Addressing Challenges and Stakeholder Concerns

The revamped startup policy is a response to the identified need for strengthening the incubation and acceleration ecosystem for startups in Jammu and Kashmir. Stakeholder consultations conducted by the Industries and Commerce department revealed this as a key concern. The new policy and its operational guidelines, once finalized, are expected to address this challenge, providing crucial support to startups during their early growth stages.

This committee review signifies the J&K administration's commitment to refining the startup policy and ensuring its successful implementation. By addressing the challenges faced by startups and incorporating essential operational strategies, the J&K Startup Policy 2024-27 has the potential to nurture a thriving startup ecosystem within the Union Territory.

Under the new startup policy, a taskforce will also be formed to monitor implementation of the new startup policy and decisions made by the High Level Empowered Committee for the Startups. This taskforce will be headed by the Administration Secretary, Industries & Commerce Department, Director, JKEDI amongst others.

JKEDI will be the nodal agency for the implementation of the policy while the JKEDI Director will be the nodal head.

Lieutenant Governor of Jammu & Kashmir Manoj Sinha had recently said at an event that J&K has 722 registered startups, with a notable focus on gender inclusivity, boasting 254 women-led startups. The J&K startup ecosystem exhibits a diverse landscape with construction and engineering emerging as a key player, constituting 49 percent of the total startups, followed by skill development (12 percent), oil and gas transportation (12 percent), IT consulting (8 percent), business support services (7 percent), food processing (6 percent), and agri-tech (5 percent).

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