Educational Institutes to Allocate 1 Percent of Budget towards Startup Policy
Higher educational institutions have to now set aside one per cent of their annual budget for funding startups and supporting innovation by creating an ‘innovation fund.’
These institutions will also have to create pre-incubation and incubation facilities that will be available to the students and faculty members 24X7. As per the government’s new plan, all major educational institutions and universities will be ranked on indicators related to promotion of innovation and entrepreneurship development.
The new guidelines issued by the Ministry of Human Resource Development also included that from now on all the students and faculty members will be allowed IPR licensing which will give them the opportunity to work part time with the startups while continuing their studies.
Launched by the HRD minister, Ramesh Pokhriyal, the institutes are now allowed to take up 2 per cent to 9.5 per cent stake in the startup based on the support provided by them.
“As India wants to become a 5 trillion dollar economy by 2024, the country is the need of emerging as global hub for innovation and entrepreneurship,” added Pokhriyal.
According to this new startup policy framework, all the student entrepreneurs will be allowed to sit for the exams even if they have not met the minimum attendance criteria. Moreover, the students and faculty members will also be given semester and year breaks for working and then re-joining the program if they wish to.