Telangana Government Creates Schemes To Foster Startup Ecosystem

Telangana government has its aim fixed at improving its national ranking amongst the startup ecosystems in the country. With Hyderabad as its flagship startup hub, the state of Telangana is planning to carve a niche in various emerging sectors that may not be on top of the priority list or agenda of other Indian states. Telangana has become popular for its innovation ecosystem, which is supported by the government. Currently, the state’s focus has been around emerging technologies, such as blockchain, augmented reality/virtual reality, renewable energy, and others.

There are around 4,000 startups in Telangana, and these are contributing to around 15-20% of the overall startup ecosystem in India. Moreover, this ecosystem is growing further at a rate of 30% yearly.

For the benefits of the startups and their impactful growth, the state government has declared several schemes.

Marketing Cost Reimbursement
The startup will get 30% reimbursement of the actual costs including travel incurred in international marketing through trade shows, with a maximum limit of Rs. 5 lakh/year per company.

Eligibility Criteria:
The trade show/event should be listed in the calendar of events issued by the ITE&C Department in a separate memo.

Patent Filing Cost Reimbursement
The cost of filing and prosecution of a patent application will be reimbursed to the incubated startup companies subject to a limit of Rs. 2 lakh (0.2 million) per Indian patent awarded. For awarded foreign patents on a single subject matter, up to Rs. 10 lakh (1 Million) would be reimbursed. The reimbursement will be done in 2 stages, i.e., 50% after the patent is filed and the balance 50% after the patent is granted.

Eligibility Criteria:
The startup must be incorporated in Telangana.

Recruitment Assistance
The scheme aims to promote idea stage companies. The government shall offer recruitment assistance of Rs. 10,000 per employee for the first year.

Eligibility Criteria

• The startup should be in its first year of operation in Telangana.
• 50% of the employees should be of Telangana origin.
• The employees for whom recruitment assistance is available should work for the company for a minimum period of 8 months from the date of appointment.

Performance Grant
Startups that record a year-on-year growth rate of 15%, as per audited accounts, shall be eligible to get a grant of 5% on Turnover, subject to a limit of Rs. 10 lacs within three years from the date of incorporation.

Eligibility Criteria
The startup must be incorporated in Telangana.

3-Shift Operations
General permission shall be available for 3-shift operations with women working in the night for startups, subject to such units taking the prescribed precautions in respect of safety and security of employees in addition to providing the required welfare and health amenities as prescribed under applicable labour laws and obtaining the necessary approvals from the competent authority of the Government under the Telangana shops and commercial establishments act and rules or the Factories Act 1948 and rules, there under as the case may be.

Eligibility Criteria
The startup must be incorporated in Telangana.

These government-supported schemes will not only foster the startups but will also contribute to the growth of the startup ecosystem. These schemes are meant to boost the innovation quotient of entrepreneurs and encourage them to bring an effective change for mankind.

For the entrepreneurs and startups who are looking forward to bringing about an impactful change to the world and help people with the necessary things, don’t worry about the funding. Hyderabad Angels will help you with funding and mentorship if they see you have it in you. Get in touch with us today!