Entrepreneurship Ecosystem Overview

Rajasthan

Levers of change – Entrepreneurship

Following are the key levers of change which determinewhether a state’s policy, education, legal framework, financialsystems, business markets, cultural and social ethos areaugmenting Entrepreneurship Growth:

1. The Entrepreneur

2. Govt. & Regulatory Support

3. Access to Finance

4. Educational & Cultural Preparedness

5. Mentoring & Networking

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The Entrepreneur

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Rajasthan ranks #9 in India on ‘Ease of Doing Business’ index 2017-18and features among top achievers category. Although it has slipped 3places from previous years rank at 6.

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Govt. & Regulatory Support

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Schemes:

•Rajasthan SEZ policy•Rajasthan Start-up policy 2015•Rajasthan MSME policy 2015• Rajasthan iStart

Govt. Regulatory Bodies

•Rajasthan State Industrial Development and Investment Corporation(RIICO)•Economic Policy and Reforms Council•Project Development Corporation Ltd (PDCOR)

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Rajasthan SEZ PolicyThe objective of this policy is to initiate infrastructural development witha primary focus in the fields of gems and jewelry, woolen carpets,handicrafts, and so on. The primary aim is to formulate an absolutelytax-free operation the in industrial, service, and trade sectors.

Benefits• Exemption from stamp duty and registration fees.

• Exemption of all state and local taxes and levies for transactions withthe Special Economic Zone (SEZ) and for supply from domestic tariffareas to the SEZ.

• Expediting process for land acquisition to set up SEZs.

• Grant of labour and environment-related permits and approvals througha dedicated single window mechanism.

• Permission to generate electricity for own consumption.

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Rajasthan Start-Up Policy 2015• It aims to strengthen the start-up eco-system in the state by setting up 50

incubators/accelerators, and mobilizing Rs 500-crore angel/venture capitalfunding in the next five years.

• The focus will be on areas like Social and Clean-tech – Rural Infrastructure& Services, Crafts, Water, Sanitation, Renewable Energy and Healthcare,including asset light models of healthcare delivery and medical device,Internet of Things etc.

• The government aims to support and incubate 500 start-ups from stateand create a 10,000 sq feet incubation centre by 2020.

• The policy aims to encourage an ecosystem of innovation and problemsolving in the state.

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Rajasthan Start-up Policy : Benefits

• Under the policy, sustenance allowance of INR 10,000/- per month for oneyear will be paid to the Startups at Idea/Prototype Stage, post approval bythe Committee and Nodal Institution.

• Selected startups to get free access to state infrastructure likeUniversity/Libraries/ Govt. Laboratories etc.

• Marketing assistance for startups at the product launch stage, will beprovided up to a maximum of INR10 lakh.

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Rajasthan MSME Policy 2015

The policy focuses on:

• provision of loans,

• rehabilitation of sick units,

• support in quality improvement,

• ease of doing business,

• fiscal benefits and incentives,

• development of MSME clusters

• marketing support.

• support for startup business.

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• Credit up to a maximum of Rs. 5.0 crore can be availed by young entrepreneurs(up to age 45 years) for setting up a new enterprise, with interest subsidy of 6%applicable up to a maximum credit limit of Rs. 90 lakh, under the Yuva UdyamitaProtsahan Yojna of RFC.

• Support For Start-Up Business and Budding Entrepreneurs :Plug and play facilitieswill be encouraged to be set, especially in the sectors of IT, Garment-making,Electronics and ESDM so that the new entrants in these fields may have access toeasy entry and exit facilities for immediate starting their business venture.

• Interest subsidy would be provided to unemployed youth, women, educated andunemployed women and S.C., S.T. and Specially-abled persons for setting upmicro-enterprises, as per the provisions contained in the BhamashahEmployment Generation Scheme, 2015, as notified by the State Government

• With a view to encourage SMEs to raise funds through this route, assistance willbe provided to the extent of 10% of the expenditure incurred, subject to amaximum of Rs.2.5 lakh one time after successful raising of equity.

Rajasthan MSME Policy 2015 : Benefits

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Rajasthan iStart

• Rajasthan iStart is an Initiative by Department of Information Technologyand Communication, Government of Rajasthan. It is a single-windowplatform offering a host of relevant information and benefits to facilitatestartup ecosystem in the state.

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https://istart.rajasthan.gov.in/wizard

Economic Policy and Reforms Council

The Council provides strategic inputs to the state government forincreasing private sector participation, creating resources,capabilities, infrastructure and systems so that economic activitiescould flourish in the state. The Council comprises members from thefields of business and economics – with CEO of Shell India, ViceChairman of HSBC in India and Chairmen of ITC, HDFC, NIIT Ltd andGujarat Ambuja Cement.

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Project Development Corporation Ltd (PDCOR)

It is a partnership between the Government of Rajasthan andHDFC/ILFS. The mandate of PDCOR is to facilitate private sectorinvestment in infrastructure-related activities in Rajasthan. It providesinstitutional support to the government in order to successfullystructure and implement infrastructure projects on a PPP basis. It alsoadvises the government on policy and institutional changes.

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Rajasthan State Industrial Development and Investment Corporation (RIICO)

It is a state govt. agency providing services to investors andentrepreneurs include: site selection and acquisition of land, financialassistance to small, medium, and large scale projects, equityparticipation in large projects on merit, technical consultancy forproject identification and tie-up escort services, facilitation ofgovernment clearances, merchant banking and financial tie-ups,extending incentives and concessions according to the policy of stategovernment and Department of Industries.

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Access to Finance

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Schemes:

•Loan Scheme for First Generation Entrepreneurs•Rajasthan eGovernance and IT/ITeS Policy 2015• Bhamashah Techno Fund

VC’s and Angels in Rajasthan:

•500 Startups•Mahavir Pratap Sharma•Yogesh Chaudhary•Rajasthan Venture Capital fund•Rajasthan Angel Innovators Network

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Loan Scheme for First Generation Entrepreneurs : 2012

• Under the scheme, RIICO (Rajasthan State Industrial Development &Investment Corporation Limited) -Rajasthan is providing loans to young orfirst generation entrepreneurs for setting up a new project (excluding realestate projects) covering investment in land, buildings, plant andmachinery, miscellaneous fixed assets, margin money for working capitaletc.

• Term Loan of up to 10 Crore @ existing interest rates is provided to thebeneficiary. The repayment period for loan amount is 7-8 years includingmoratorium period of 1-2 years. Entrepreneurs’ own contribution has tobe 20% of the total cost of the project.

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• Eligibility: The applicant must have technical/professional degree inany field or His/her project/product must be recognized fromNational Innovation Foundation/ any other similar institution ofrepute in country or abroad or must have 5 years of experience inthe field of his qualification.

• Application Process: Applicants desirous of availing financialassistance from the Corporation may submit application inprescribed format along with processing / application fee tothe Chief General Manager (Investment), RIICOLtd., Udyog Bhawan, Tilak Marg, Jaipur-302 005 or any of the 27Unit Offices of the Corporation in the State or the New Delhi Office.The application form is available on RIICO's websitei.e. http://industries.rajasthan.gov.in/

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Rajasthan e-Governance and IT/ITeS Policy 2015

• To promote the IT / ITES Industry in the city, this policy attempts todevelop a more modern and vibrant ecosystem for Electronics and ITindustry to support electronic governance initiatives of the Government ofIndia and attract investment and talent to such industries in Rajasthan.

• Key focus areas of the policy include pioneering e-Governance initiatives,research & development in Electronic System Design and manufacturing,support of the Micro Small & Medium Enterprises and promotion ofentrepreneurship that harnesses the huge talent pool of the people ofRajasthan

• The aim is to have 2000 technology startups in the state by 2025.

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Package of IncentivesManufacturing Sector

Total Investment

Interest Subsidy on VAT/CST (7 years)

Employment Generation Subsidy (7 yaers)

Electricity Duty Exemption (7 yrs)

Land Tax Exemption (7 yrs)

Upto 5 Crore 30% 20% 50% 50%

25 Crore and Above

70% 10%

Service Sector

Reimbursement on VAT/CST paid on purchase of Plant & Machinery

Electricity Duty Exemption(7 yrs)

Land Tax Exemption (7 yrs)

50% (except entertainment business)

50% 50%

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MSME Sector

Electricity duty Exemption (Rural Areas)

Exemption on Raw materials Entry Tax

Reduction in stamp duty on documents for loan agreements

Reduction in stamp duty for simple mortgage

CST

75% 50% Rs100 Rs500 1%

If the enterprise is owned by Women/SC/ST or Differently abledperson then an additional 10% interest subsidy is provided in case ofmanufacturing sector and service enterprises will get an additional of10% reimbursement on VAT for 7 years.

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Bhamashah Techno Fund

• Bhamashah Techno Fund of Rs. 500 Crores for Start-ups has beenintroduced to give an open sky to the potential Start-ups of the state. Thefund would be used for Start-ups of the State for their growth and all-round development and to levitate the Start-up community of Rajasthanto the highest pinnacle in the Country.

• Proposed allocation of funds:

• Rs. 500 Crore for Potential & Emerging Start-ups

• Rs. 100 Crore for Women Start-ups (from the total fund)

• Rs. 50 crore for Green Start-ups (from the total fund)

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https://istart.rajasthan.gov.in/Bhamashah-Techno-Fund

VCs And Angels In Rajasthan

• 500 Startups: is an early-stage venture fund and seed acceleratorfounded by Dave McClure and Christine Tsai in 2010.

• Mahavir Pratap Sharma is a serial entrepreneur, is the Chairman andCo-founder at RAIN (Rajasthan Angel Innovators Network). He hassuccessfully co-founded startups such as Oscar Expo Design LLP,Swishin Events LLP, Jaipur Kaleen Park Ltd (JKPL) and more.

• Yogesh Chaudhary: This startup investor is the owner and Directorat Jaipur Rugs Company.

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• Rajasthan Venture Capital Fund (RVCF) has signed an agreement withStartup Oasis and Centre for Innovation, Incubation & entrepreneurship(CIIE) to dedicate 10% of its INR 500 Cr third fund (SME Tech Fund) forstartups. The fund is supported by 15 investors, of which the leadinvestors are the Small Industries Development Bank of India (SIDBI) andRajasthan State Industrial Development and Investment Corporation(RIICO).

• Rain-Rajasthan Angel Innovators Network: RAIN is a group of Angelinvestors in Jaipur interested in investing in early stage businesses, whichhave a potential to create scale.

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Education & Cultural Preparedness

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Educational Institutions Promoting Entrepreneurship

Entrepreneurship Development Division : Department of Science& Technology, Govt. of Rajasthan: Entrepreneurship DevelopmentProgramme is being organized by the department throughvarious agencies like engineering colleges in the state. Some ofthe colleges are Rajasthan Technical University & EngineeringCollege, Kota, Centre for Entrepreneurship & Management &Development Centre MDS University, Ajmer MLV Textile Institute,Bhilwara, and College of Technology & Agriculture Engineeringetc.

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• Rajasthan Institute of Engineering & Technology: EntrepreneurshipDevelopment Cell-to nurture entrepreneurship among studentcommunity. http://rietjaipur.com/1570-2/

• Maharshi Dayanand Saraswati University Ajmer: The institute offers aBBA in Entrepreneurship & family business. It nests Center forEntrepreneurship and Small Business Management (CESBM) whichconducts entrepreneurship development program, entrepreneurshipawareness camps, graduate and post graduate programs inentrepreneurship and skill development programs.http://www.mdsuajmer.ac.in/Academics/cesbm_dep.htm

• JK Lakshmipat University: They offer an MBA in Family Business &entrepreneurship.http://www.jklu.edu.in/program_detail.aspx?courseid=15&deptid=0&levelid=2&mpgid=40&pgidtrail=40&schid=4

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• Career Point University Kota: They offer MBA inEntrepreneurship & Family Managed Business (EFMB).http://www.cpur.in/courses/management/fmba.php

• IIT Jodhpur- Entrepreneurship Cell: Entrepreneurial mind-setcreation and conducting entrepreneurship development events.http://iitjecell.in/

• IIM Udaipur: The institute has created ManagementDevelopment Program for Women Entrepreneurs to encourage,empower and educate potential women entrepreneurs.

• Saksham is the entrepreneurship club of IIM Udaipur which aimsto encourage and support entrepreneurial ambitions ofstudents. http://iimu.ac.in/prarambh/events.html

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Mentoring & Networking

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Startup Incubators, Co-Working Spaces

Start-Up Oasis is a Jaipur based incubation centre that isdeveloping an ecosystem in Rajasthan to inspire and supportstudents, aspiring entrepreneurs and start-ups to solve persistentproblems, develop breakthrough innovations and create worldclass enterprises. Startup Oasis has been set-up at the jointinitiative of RIICO (http://www.riico.co.in/), Rajasthan’s premiereindustrial promotion organization, and the Centre for Innovation,Incubation and Entrepreneurship (CIIE)(http://www.ciieindia.org/) at IIM Ahmedabad, India’s leadingincubation and entrepreneurship centre.

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• TIE Rajasthan: Works for mentoring, incubating and fundingentrepreneurs. http://rajasthan.tie.org/

• Wired Hub, a co-working space, was publicly opened on February 1, 2016,and has organised regular workshops, mentorship sessions, and pitchingcontests.

• enTRIPreneur is a platform that aims to change the way entrepreneursconnect with each other. The platform organizes exclusive trips forentrepreneurs where they can relax, interact, connect, and learn withother like-minded and proactive entrepreneurs.

• Bhamashah Techno Hub Incubator: o accelerate the pace of creating acompelling startup ecosystem in Rajasthan, the state government isdeveloping the biggest and the most advanced startup hub - BhamashahTechno Hub.The incubation centre will offer free space, connectivity, easierfunding, mentorship and exposure to the budding and rising startups.https://istart.rajasthan.gov.in/incubator_faclity?check

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