Delhi Startup Policy: Govt To Set UP INR 200 Cr VC Fund

The Delhi government has released the draft ‘Delhi Startup Policy, 2025’ to foster the startup ecosystem and support and facilitate emergence of at least 5,000 startups by 2035.

Under the draft policy, the government intends to float a VC fund worth INR 200 Cr. “The GNCTD (Government of National Capital Territory of Delhi), in association with leading investor networks, may organise experiential learning workshops to guide aspiring investors and other high-net-worth individuals on the dynamics of investing in startups,” the draft policy read.

Other salient points of the draft policy include: 

— Reimbursement of 100% on lease rentals up to INR 10 Lakh per annum for a maximum period of three years.

— Complete reimbursement of patent design filing of up to INR 3 Lakh on international filing and INR 1 Lakh on domestic patent filing.

— Monthly allowance of INR 2 Lakh for a period of one year for operational costs.

Besides the financial support, the policy proposes to set up new incubation centres or coworking spaces to provide capital support and operational subsidy “over and above” the existing subsidies provided by the Central government for a period of five years. 

The Delhi government will also explore establishing partnerships with academia, incubators, government labs, and financial institutions to provide mentorship to the startups based out in the national capital. 

The Delhi government will provide virtual incubation service to the startups through the Delhi Incubation Hub network, to help the start-ups tap into a network of experts and mentors.

Further, the BJP government will set up a policy monitoring committee under the chairmanship of commissioner of industries. The planning department’s secretary, deputy commissioners of industries department, and a couple of industry experts will also be part of the committee. 

The policy also proposes setting up a ‘Startup Task Force’, which will be responsible for evaluating and approving applications received to avail benefits of the scheme. This force would be helmed by two commissioners from the industries department, along with five industry experts. The task force will be responsible for reviewing the implementation status every six months.

The state government’s focus on bolstering entrepreneurship comes at a time when the country’s startup ecosystem is growing at a significant pace. The Indian startup ecosystem is now the third largest in the world and houses nearly 1.9 Lakh startups which have raised over $164 Bn till date.

In order to grow their economies and create jobs, states across the nation are coming out with dedicated policies to promote startups. For instance, the state of Haryana recently urged private investors to contribute INR 2,000 Cr for a “Fund of Funds”, which is a part of its state startup policy. 

Besides, the Andhra Pradesh government recently announced the “AP Innovation & Startup Policy (4.0) 2024 -2029”, aimed at creating 20,000 new startups in the next five years.