Slide 1

Slide 2

Policy Guidance KeralaAndhra Pradesh Karnataka Look Forward To meet requirement since demographic dividend in state will end sooner to its aging population. Emerging trend of crossing 10000 startups by 2020 To create a world class technology start up ecosystem To generate large employment Budgetary Allocation 1% of State's Annual Budget Appx Rs. 2500 crores in five years Rs.100 crores Fund of Fund with 15% cap in participation with SEBI approved venture fund No specific mention Objective Attract Rs 5000 crores investment, 1 Million Sq. ft incubation space with 10 Technology Business Incubators, develop common infrastructure like lab, cloud server, services for example accounting, patent registration etc 5000 startups thru 100 incubators/ Accelerators, 1 Million incubation space No target Accelerators At least one world class Accelerator thru Global invitation program No specific policy SUMMARY : OTHER STATES POLICY 2 PKM Advisory Services P. Ltd.

Slide 3

SUMMARY : OTHER STATES POLICY Policy Guidance KeralaAndhra Pradesh Karnataka Human Capital Development Mandatory apprenticeship for under grad, Sabbatical scheme for college and university faculty to rejoin job when his incubator unsuccess. Mandatory apprenticeship for under grad, Sabbatical scheme for college and university faculty to rejoin job when his incubator unsuccess Nil Financial Support To encourage Banks and Financial institution to enhance and extend fund collateral free, soft loan etc. State owned financial institution will get state government guarantee up to 10% of loan disbursed and outstanding,in case of NPA. No assertion NA Registration Compliance Many Exemption such as factories act, labour act etc. single window clearance Many Exemption such as factories act, labour act etc. Monetary Support Reimbursement of VAT/CST on Turnover with ceiling, Reimbursement of stamp duty and registration fees 100% on first transaction and 50% on second transaction, patent filing cost up to Rs. 2 lacs for domestic and 10 lacs for foreign registration Reimbursement of VAT/CST on goods supplied to or sale by Incubators without ceiling Reimbursement of PF and ESI per employee Rs 2000 for continuous period of 2 years employment of employee. Exemption from stamp duty 75%. 3 PKM Advisory Services P. Ltd.

Slide 4

SUMMARY : OTHER STATES POLICY Policy Guidance KeralaAndhra Pradesh Karnataka Additional incentives to private / PPP model incubators Incubator project that has capacity to create 1000 startups, get financial, monetary incentive on lease land, rental, capex etc. Relaxation to AP building Rules and other appropriate benefits NA Fees to Mentor and financial support in running expenses of incubation unit No mentor fees. Financial support @20% on capex other than land and building cost to host incubator/ facility provider under ppp /private model. However no support to startup. No mentor fees. selection of host institute as non exclusive pilot incubator by state government from NSTEDB approved incubator for 5 years. State govt will provide ready to use with plug and play facility and Rs 12500 per month for three years per startup company for meeting running expenses to pilot incubator. No direct financial support to startup. No mentor fees. Startup may get ready to use with plug and play facility owned by state government / privately recognised at concessional rate of Rs 5-15 per sq ft. 4 PKM Advisory Services P. Ltd.

Slide 5

A -411 Safal Pegasus, Prahalad Nagar, Satellite, Ahmedabad-380051 Phone: +91 79 40065204 Email: pkm@pkmadvisory.compkm@pkmadvisory.com Web: www.pkmadvisory.comwww.pkmadvisory.com