ANDAMAN AND NICOBAR ISLANDS - Startup India · 2020. 9. 11. · ANDAMAN AND NICOBAR ISLANDS BEST PERFORMER 5 OVERVIEW OF UT 01 STARTUP ECOSYSTEM Andaman and Nicobar Islands (herein

ANDAMAN AND NICOBAR ISLANDSBEST PERFORMER

STATE/UT STARTUP RANKING EXERCISE 2019

ANDAMAN AND NICOBAR ISLANDS | BEST PERFORMER2

Table of

Contents

1. Overview of UT Startup Ecosystem .........................05

2. Snapshot of UT Performance ..................................08

3. Pillar Wise Assessment ...............................................09

3.1. Institutional Support ..............................................................09

3.2. Simplifying Regulations .....................................................12

3.3. Easing Public Procurement ............................................13

3.4. Incubation Support ................................................................14

3.5. Seed Funding Support ........................................................15

3.6. Venture Funding Support ................................................16

3.7. Awareness and Outreach ...............................................17

5ANDAMAN AND NICOBAR ISLANDS | BEST PERFORMER

OVERVIEW OF UT STARTUP ECOSYSTEM01

Andaman and Nicobar Islands (herein referred to as the ‘A&N Islands’), a Union Territory (herein referred to as “UT’) has been playing the role of a catalyst in creating an enabling environment for innovators and startups to flourish and grow. A&N Islands offers a variety of sustainable projects for investment in entities to enhance the startup culture in the UT.

The UT continues to create multiplier effects on employment generation and social transformation, leading to the growth of the UT. The UT has launched the “Innovation & Startup Policy 2018” (hereinafter called the ‘policy’) which aims at nurturing a culture of ideation, entrepreneurship and innovation amongst individuals and entities. The policy envisions to create a startup ecosystem through strategic partnerships, conducive startup ecosystem and favourable policy interventions.

THE STARTUP POLICY IS AIMED AT DRIVING THE MISSION OF THE UT THROUGH THE FOLLOWING:

Building a holistic innovation and startup ecosystem in the

A&N Islands, focusing on all sectors of the economy

Providing fiscal and non-fiscal benefits in a

transparent and time bound manner

Streamlining rules, regulations and

legislations to create an entrepreneurship friendly

environment

Implementing a supportive regulatory framework and robust governance structure that enables hassle-free, time bound statutory clearances and policy monitoring


1. BUILDING PHYSICAL INFRASTRUCTURE TO SUPPORT INNOVATORS AND STARTUPS:

2. PROMOTING A CULTURE OF INNOVATION THROUGH ACADEMIC INTERVENTIONS:

SETTING UP STARTUP INCUBATORS: The government would establish incubation centers in the colleges under Technology Business Incubator (TBI) scheme of Department of Science & Technology, Government of India, Atal Incubation Mission (AIM) of National Institution of Transforming India (NITI) Aayog, or National Association of Software and Service Companies which is a trade association of Indian Information Technology (NASSCOM) 10000 Startups Warehouse programme

ATAL TINKERING LABS (ATLS) IN SCHOOLS

The government would set-up Atal Tinkering Labs in senior secondary level schools to promote STEM

(Science, Technology, Engineering, Mathematics)

thinking and application amongst students

MANDATORY INDUSTRIAL TRAINING IN FINAL YEAR

All colleges and institutions in A&N Islands would be guided on establishing an industrial training semester as a part of

the degree curriculum

BUILDING CO-WORKING SPACES: The startups at co-working spaces would be able to access facilities such as high-speed internet, power backup, secured access, 24x7 security with CCTV surveillance, etc

ANNUAL STUDENT STARTUP FESTIVAL

Student innovations would be showcased to successful

entrepreneurs,leading educational institutions,

corporates, venture capital firms, etc

ENTREPRENEURIAL CELLS (E-CELLS)

E-Cells would conduct startups and innovation festivals, showcase local success stories, engage alumni, host leadership

talks and develop women entrepreneurship ecosystem

UNIVERSITY/COLLEGE INNOVATIONAND

ENTREPRENEURSHIP ECOSYSTEM

An engaging university level innovation ecosystem is built to foster the spirit of

entrepreneurship

FORMAL ENTREPRENEURSHIP DEGREES

The government would partner with leading Indian institutions to offer formal

degrees in entrepreneurship

The government of the A&N Islands is also nurturing the seeds of innovation and entrepreneurship by building an enabling ecosystem. Following are some of the initiatives being considered:


3. INSTITUTIONALISING THE CULTURE OF ENTREPRENEURSHIP BY PROVIDING RESOURCES AND SKILLS TRAINING:

CONDUCTING STARTUP INDIA YATRA

To host entrepreneurship bootcamps and pitching

sessions for aspiring entrepreneurs to pitch ideas

to leading incubators and investors

STARTUP EXCHANGESThe selected startups would be funded for travel and showcase opportunities via the marketing budget of the government startup initiative up to a maximum limit of INR 15000/- or actual cost;

whichever is less

FACULTY EXCHANGESThe faculty exchange programmes would provide the faculty of regional colleges with the opportunity to teach or conduct research for one semester or an academic year at an overseas university. This is to upgrade their entrepreneurship skills and increase exposure to new ideas and

teaching techniques

CORPORATE ENGAGEMENT PROGRAMMES

To run special innovation challenges for local

innovators and startups

TRAINING PROGRAMMESServices such as mentoring, entrepreneurial

skills training, funding, legal, accounting, technical assistance, networking and

marketing assistance would be provided to local innovators and startups

DEFERRED PLACEMENTSDeferred placements enable the students to defer placements by a year or two to start their own ventures. They can come back and seek campus placements if their ventures fail. The UT will implement the ‘Deferred Placements’ in all the colleges. This would help students working on their startup ideas to opt for work for up to 2 years, post completion of their final year and

appear for campus placements later

ANNUAL A&N ISLANDS STARTUP FESTIVAL

The festival will be positioned as a convergence of business

networking, innovation showcase and island tourism

for global audiences


SNAPSHOT OF STATE PERFORMANCE 02

Performance of the Best State in the pillar

Relative Performance of the State

The following representation details status of Andaman and Nicobar’s implementation on each of the 7 pillars of assessment. Data presented below is the percentile score.

Andaman and Nicobar Islands has been evaluated on 7 distinct pillars which largely contribute to the growth of the startup ecosystem in Andaman and Nicobar Islands. The representation as expressed above depicts the relative performance of Andaman and Nicobar Islands in each of the seven pillars in comparison to the performance of the best state in that pillar.

Andaman and Nicobar Islands has shown impeccable performance in ‘Institutional Support’ and ‘Easing Public Procurement’ by being in the 100th percentile. The range of impact generated through ‘Awareness and Outreach’ is also noticeable through this graph. Although efforts have been made to enhance the startup ecosystem, the initiatives undertaken towards ‘Venture Funding’, ‘Seed Funding’, ‘Incubation Support’ and ‘Simplifying Regulations’ require improvements since results have been negligible in these pillars.

Detailed analyses of this snapshot can be viewed in the subsequent section, with extensive insight into the initiatives taken by Andaman and Nicobar Islands to uplift its startup ecosystem.

Venture Funding Support

0%

Simplifying Regulations

0%

Incubation Support

0%

Seed Funding Support

0%

Easing Public Procurement

100%

Institutional Support

100%

Awareness and Outreach

33%


PILLAR-WISE ASSESSMENT

The UT has a defined and notified Startup Policy which is sector agnostic and is publicly available. The policy encapsulates a clear definition of ‘Startup’ in a comprehensive manner. Apart from the definition of a ‘Startup’, the policy also defines the term of an accelerator, incubator, innovator and nodal agency etc. for clarifications and appropriate interpretation. The UT also has a robust IP support system in place to provide intellectual property assistance to startups in terms of provision of subsidies for filing patents/ trademarks.

KEY FACTS

1. INSTITUTIONAL SUPPORTInstitutional support envisages provisions and execution of the UT’s startup policy including information on the nodal team within the UT, online implementation system, registration of mentors and their listing on the UT startup portal. The UTs are evaluated based on the laid provisions along with parameters of availing benefits through UT intellectual property rights portal, establishing partnerships with institutions, providing special incentives for women led startups and entrepreneurship.

03

KEY STRENGTHS

DEFINED AND NOTIFIED STARTUP POLICY

According to the UT’s Startup Policy, an entity shall be considered a startup if it fulfils all the five conditions mentioned below:• The date of incorporation/ registration is not prior to seven

years.

• Annual turnover does not exceed INR 25 crore, for any preceding financial year.

• Working towards innovation, development, and commercialisation of new products, processes, services or intellectual property that are scalable for achieving commercial success.

• Registered in A&N Islands or employs at least 50% of its total qualified workforce in Andaman & Nicobar Islands.

• Not an extension of existing family business or formed by splitting up or reconstruction of a business already in existence.

KEY

STRE

NG

THS

STRONG INTELLECTUAL PROPERTY (IP) SUPPORT

• The UT has a system in place to provide 100% Intellectual Property (IP) assistance to startups in terms of provision of subsidies for filing national or international patents/trademarks/ copyright.

• The monthly allowance of INR 15,000 shall be provided to startups with founder/ cofounder as woman/ transgender or Schedule Caste (SC)/Scheduled Tribe (ST)/ Socially and Educational Backward Communities (SEBC)/ Physically Handicapped (PH) for a period of one year. In such a case women/ transgender/SC/ ST/ SEBC/ PH founder(s) should at least have 50% equity in the startup entity.


WAY FORWARD

The UT needs to give importance to this pillar in order to further strengthen the startup ecosystem. The UT could prioritise actions required in three categories: short, medium and long term. Action required in each of these categories are summarised below: -

SHORT TERM ACTIVITIES (1-3 MONTHS)The activities suggested in this category are important and will take relatively less time for implementation. Through dedicated efforts, results can be achieved within one to three months. Activities suggested under this category are as follows:

Comprehensive Startup Policy• The government could make the policy more comprehensive with inclusion of initiatives for women led startups. These initiatives may

include provision of monthly allowances, product development/marketing assistance and reservation of subsidised incubation space .

Registration of startups and process of availing incentives• The policy could have clear guidelines on the registration process for startups and the benefits and incentives (both fiscal and non-

fiscal) available for startups.

• Startups could be able to register, obtain registration certificates, track application status and generate online receipts.

Support for Women Entrepreneurs• The A&N Islands government could provide 100% reimbursement of rental costs of exhibition stall space for startups with promoters who

are women. This is to encourage participation of women-led startups in both national and international exhibitions.

• The UT may also make it mandatory to allocate a minimum of 10% of seats in incubators to startups with women co-founders.

• Overall, the UT could encourage women entrepreneurship through special women-led initiatives of providing entrepreneurial skill-based training towards innovative thinking and ecosystem infrastructure to women participants, starting from the school level in the UT.

Support from various departments• The UT may also encourage inter UT departments to collaborate with other government bodies in order to establish policies and schemes

aimed at supporting startups in the region. Such collaborative initiatives would expedite development of the startup ecosystem in the UT.

MEDIUM TERM ACTIVITIES (4-6 MONTHS)The activities suggested in this category are important and will take relatively more time for implementation. Through dedicated efforts, results can be achieved within four to six months. Activities suggested under this category are as follows:

Online Portal for Startups• The A&N Islands government could create a dedicated portal for startups. The portal could have online delivery of services related to

the registration of startups, issuance of registration certificates and tracking of application status. This would ease the application and registration process for startups.

• The portal could also have an interactive query resolution system through which startups would be able to submit their queries and obtain a resolution for the same.

• The portal could have all the details of the UT’s Startup Policy and highlights of financial and non-financial benefits offered.

• A detailed list of incubators and mentors could be made available online. This would promote entrepreneurial awareness in the UT and encourage aspiring youth to pursue their innovations.

Build a strong mentor network• The government could establish an online mechanism for startups. The startups would be able to connect with the mentors and

the UT would publish a detailed list of mentors along with their experience and achievements. This would help build the UT’s startup ecosystem and a strong base of mentors to provide guidance and support to the UT’s startups. The UT could work upon congregating experienced professionals and industry consultants to form a mentor network to benefit entrepreneurs as they would have the ability to gain profound knowledge and confidence to establish their business.


Partnerships with corporates/educational institutions• The government may build partnerships with reputed corporates and educational institutions with a strong focus to support startups

in the UT.

• Partnering with such institutions would aid startups in the form of professional services, mentorship, corporate social responsibility (CSR) funds for incubators and co-working spaces, software/hardware tools, lab equipment, knowledge exchange, technology transfer and market linkages.

Dedicated nodal department, officer and team

The government could set up a nodal team for the A&N Innovation and Startup Policy and also position a dedicated nodal officer and a startup cell to oversee the development of the startup ecosystem


2. SIMPLIFYING REGULATIONSSimplification of regulations considers mandatory requisites for UT level approvals and clearances for registering and operating a business or startup online. In order to make compliance for startups friendly and flexible, simplifications are required in the regulatory regime. It encapsulates regulatory issues faced by registered startups which have been identified through an interactive online mechanism subject to approving action by regulatory agencies. The UTs are evaluated based on the support provided to startups by introducing a list of rules, regulations or Acts in the UT, including amendments in the Acts and regulations with requisite details to create a conducive environment for the UT’s startups.

The Government of A&N Islands is yet to design and implement a supportive regulatory framework for startups in the UT.

KEY FACTS

WAY FORWARD



Online mechanism for approvals and clearances• The government could establish an online interactive mechanism, with simple user interface for all UT approvals and clearances

available for startups.

Invite or identify regulatory issues• The government could prioritise to establish an institutional online mechanism to connect with startups from disruptive technology

areas and to understand their regulatory issues. By setting-up such a detailed system, the government would gain knowledge and information to facilitate a comprehensive regulatory infrastructure framework that would be conducive for disruptive startups in the region.

• Further, the government could also maintain a list of regulatory issues commonly faced by startups from disruptive technology areas which would be executed by enabling the UT’s startups to identify issues faced towards compliances.

MEDIUM TERM ACTIVITIES (4 –6 MONTHS)The activities suggested in this category are important and will take relatively more time for implementation. Through dedicated efforts, results can be achieved within four to six months. Activities suggested under this category are as follows:

Amendment in rules, regulations or Acts for supporting startups• The government could create an online portal for startups to apply for self-certification and third-party certification and the same

could be used for issuing certificates.

• The government may formulate specific policies to aid startups and amend its existing industrial regulations to benefit startups.

• The government could consider introducing a self-certification scheme for startups by which they could self-certify compliance with industrial regulations of A&N Islands.

• The government could focus on timely release of information pertaining to amendments in rules, regulations or Acts for supporting startups online.

https://ipass.telangana.gov.in/


3. EASING PUBLIC PROCUREMENTEase in public procurement simplifies criteria to ensure participation of startups in government tenders. The UTs are evaluated based on the support provided to startups in resolving issues related to UT public procurement as norms of Earnest Money Deposit (EMD), prior experience, and prior turnover which prove to be barriers for participating startups. Easing of such norms enable startups and entrepreneurs to avail exemptions and share an equal platform with established organisations.

The government does not award any work orders to startups and there is no online grievance redressal mechanism in place to address issues related to public procurement faced by startups.

KEY FACTS

WAY FORWARD



Provide necessary relaxations in “prior experience, turnover and Earnest Money Deposit (EMD)” • The government has made necessary relaxations in terms of ‘prior experience’, ‘prior turnover’ and ‘submission of Earnest Money Deposit

(EMD)’ in order to encourage startups to participate in public procurement.

• The UT could modify the procurement policy to extend such relaxations to startups.

Preference in public procurement and work orders awarded to startups• The government could provide preference in terms of public procurement to registered startups in the UT. This can be achieved by

reserving a certain percentage of value of goods to be procured for startups.

• The government may also provide purchase orders and work orders to startups through a transparent mechanism. Additionally, an equal platform may be provided to the startups whenever a tender is issued by a government entity.

Grievance redressal mechanism for startups• The UT could develop an online mechanism for resolving the grievances pertaining to public procurement in a time bound manner. This

could also follow an escalation matrix in which the grievance is timely assigned to the concerned officer.

• The UT could also establish an offline mechanism in the nodal department for resolving issues related to procurement.

• The grievance redressal could be easily accessible through the UT’s startup portal.


4. INCUBATION SUPPORTIncubation support is an integral element of the startup ecosystem that supports entrepreneurs to grow their businesses and assists new startups to succeed. In order to promote startups, the UT governments collaborate with organisations, corporates or industry associates to establish incubators, to support startups in the form of capital expenditure or operational expenditure. The evaluation is based on setting up of incubators supported by the UT governments to release funds to the startups, thereby creating a unique mechanism to provide subsidised incubation and operate acceleration programmes in partnership with the industry.

The incubators, co-working spaces recognised under the UT’s Startup Policy would be eligible for subsidy benefit up to 50% of monthly rent of the incubator/co-working space (subject to a maximum of INR 5000) for a period not exceeding one year. However, no incubator has been supported yet, as per the beneficiary list provided by the UT.

KEY FACTS

WAY FORWARD


SHORT TERM ACTIVITIES (1-3 MONTHS)The activities suggested in this category are important and will take relatively more time for implementation. Through dedicated efforts, results can be achieved within one to three months. Activities suggested under this category are as follows:

Mechanism to award more seats to startups • The government could consider exploring the opportunity by specifying the number of seats allocated to startups. The UT is also

encouraged to support more startups through the provision of subsidised incubation.

Conduct acceleration programmes• In addition, the government could encourage enrolment of startups in acceleration programmes to provide startups with the

opportunity to connect with investors and obtain mentorship and knowledge support. The government could consider conducting such programmes in association with industry to promote innovation and ensure sustainability.

• The government could also support startups through the provision of subsidised incubation.


Setting-up of new Incubators• The government could consider endorsing additional incubators and ensure that the incubators provide necessary supporting

documents.

• The government could also enable the introduction of new incubators by identifying and partnering with educational institutes for successful set up in the UT.

• Additionally, the government may also partner with private incubators to set up and develop incubation facilities in A&N Islands and foster growth of startups.


An initial Innovation Fund of INR 1 Crore will be created by Integrated Development Corporation Limited (ANIIDCO Ltd.), Government of A&N Islands to support establishment of startup incubators. The capital from the corpus fund will also be utilised to develop co-working spaces in the region.

KEY FACTS

WAY FORWARD



Online system for seed funding and list of beneficiaries• The government could develop an online infrastructure for startups to avail seed funding. The online infrastructure may provide the

application procedure along with functionality of online registration, approvals, and real time tracking of status of applications.

• For more awareness and transparency, the government could also consider publishing the list of startups receiving seed funding on an online portal.

• The government could also consider other models for seed funding, such as, subsidisation of interest payments on loans obtained from commercial banks.


Provide clear seed funding guidelines • The government could design seed funding guidelines and a system for disbursing funds. The guidelines may clearly define the eligibility

criteria, maximum amount of funding available and process to avail the same.

• The government could provide seed funding directly to startups or by giving seed grant to incubators who would further transfer the seed funding support to startups.

Online facility to avail seed funding

The UT could have a provision to avail seed funding through an online facility. There could be an online application system for startups to avail seed funding, a mechanism for online tracking of application status and approvals to startups should be communicated online, which would simplify the disbursement process.

5. SEED FUNDING SUPPORTSeed funding can be in the form of a direct grant, subsidised loan, product development and marketing financial assistance, monthly sustenance allowance or even equity seed funding. With seed funding, the evaluation is based on the UT’s endeavor to help a business grow and generate its own capital by establishing a guideline document. The UTs need to ensure that startups scale with the right velocity in order to achieve leading positions, through UT investment and startup’s entrepreneurial knowledge.


6. VENTURE FUNDING SUPPORTVenture capital funding support is provided to the startups from UT supported funds. The UTs are evaluated based on the establishment of the Fund of Funds (FoF) with approved operating guidelines and signing a memorandum of understanding (MoU) with the fund manager along with a concrete budget allocation. Venture funding provides strong growth potential to startups wherein the fund is used for the all-round development of startups and to levitate the startup ecosystem of the UTs.

The Government of A&N Islands shall support startups, incubators and the broader innovation ecosystem through various funding schemes under the initiative. The administration shall also form partnerships with Angel Investor Networks and Venture Capital Investors across India to enable financing for startups.• The government plans to grant up to INR 15,000 per month for a period of 1 year to Department for Promotion of Industry

and Internal Trade (DPIIT) recognised startups operating in A&N Islands at the Idea/ Prototype stage, subject to qualification basis the criteria defined under the policy.

• The government will also grant up to INR 3 lakh for DPIIT recognised startups operating in A&N Islands at Minimum Viable Product (MVP) stage, subject to the qualifying criteria defined under the policy.

KEY FACTS

WAY FORWARD



Support to venture funds• The government could set up an approved Venture Capital Fund (VCF) with a defined corpus specifying details with respect to the

operational guidelines. The government could support the venture capitalists and encourage them to actively participate in the UT towards growth of startup ecosystem.

• The government could also hire a fund manager to manage the VCF and the UT could sign an MoU with the fund manager to manage the fund operations effectively.

• The government could maintain proper record with fund wise details and necessary supporting documents of startups funded by designed VCF supported by the government.

• The government could allocate a planned budget to fund UT’s startups from VCF and could adhere to the same for a fostered startup ecosystem with increased beneficiary startups; specifically, towards early stage startups.

MEDIUM TERM ACTIVITIES (4-6 MONTHS)The activities suggested in this category are important and will take relatively more time for implementation. Through dedicated efforts, results can be achieved within four to six months. The following activity is suggested under this category:

Fund-wise list of unique startups and a comprehensive online system• The UT could devise a fund-wise list of unique startups committed to receive venture funding support from the government fund of A&N

Islands.

• The UT could build a comprehensive online system wherein details of venture support are available to all early stage and registered startups.


7. AWARENESS AND OUTREACHIt is the endeavor of UT governments to raise awareness about the Indian startup ecosystem and increase its outreach throughout the UT. The UTs are evaluated based on awareness of startups created through workshops, national and international events including bootcamps and hackathons/ grand challenges. In order to promote startups, the UT encourages participatory and inclusive processes for linking startups with angel investors and high net worth individuals. Maximum participation is encouraged for exchange of valuable knowledge amongst startups, and pitching sessions for angel investments with widespread propagation.

The Government of A&N islands conducted one bootcamp and one hackathon. The startup policy provides for funding support to startups to attend national and international events and disseminate policy initiatives and aimed objectives towards a robust startup ecosystem in the UT.

KEY FACTS

WAY FORWARD



Improvement in organisation of hackathons/grand challenges• The government could focus on bootcamps in collaboration with existing institutional infrastructure. The bootcamps may be mentored

by experts from the startup ecosystem or seasoned industry professionals to enable the UT to conduct such programmes on a frequent basis. Also, a sequential record with all relevant details could be maintained by the UT to have a vigil mechanism in place and analyse the pathway taken by the UT towards building the spirit of entrepreneurship.

• The government could organise hackathons/grand challenges to serve as a platform for disruptive solutions and a potential opportunity for building such solutions as product offerings. Increased participation in hackathons would enable the UT to collaborate intensively and mobilise the startup and entrepreneurial community to build an innovative startup ecosystem.

Promoting and conducting angel investment workshops• The government could identify leading Angel Investors and High Net worth Individuals (HNI) present locally and leverage these networks

to conduct additional workshops and facilitate discussions on establishment of startups.

• Additionally, the government could provide special fiscal and non-fiscal incentives for angel investors to participate in such events.

LONG TERM ACTIVITIES (7-12 MONTHS)The activities suggested in this category are important and will take relatively more time for implementation. Through dedicated efforts, results can be achieved within seven to twelve months. Activities suggested under this category are as follows:

Providing support for national and international events• The government could establish clear guidelines pertaining to financial and non-financial assistance for startups and foster participation

in national or international entrepreneurship events or conferences.

• The government could reimburse travel and lodging expenses as incentives to startups to attend national and global events.

• The government could also generate partnerships with other countries/international agencies such as educational institutions, incubators and accelerators for knowledge exchange.


Notes

CONTACT US

www.startupindia.gov.in

[email protected]

1800-115-565

Documents

ANDAMAN AND NICOBAR ISLANDS - Startup India · 2020. 9. 11. · ANDAMAN AND NICOBAR ISLANDS BEST PERFORMER 5 OVERVIEW OF UT 01 STARTUP ECOSYSTEM Andaman and Nicobar Islands (herein