Rise of a startup state – Telangana

Telangana startup state at their 2nd formation day

Exactly two years back Telangana became the 29th capital of India with Hyderabad as its capital city. Today we are celebrating Telangana Formation day across the state to remind the struggle Telanganites along with our leader, Chief Minister of Telangana, and “the father of the state”, Kalvakuntla Chandrashekar Rao faced to become a separate state.

KTR – IT Minister   KCR – Chief Minister Telanagan

IndianCEO in previous posts wrote a story on Hon’ble Minister for IT, Panchayat Raj, MA&UD, Sri K. Taraka Rama Rao. He is a true Startup CEO of Hyderabad and is trying to make Hyderabad the startup capital of the nation. The whole government of Telangana under leaders like KTR & KCR are helping Hyderabad start-ups grow and bring a name to this newly formed state.

Quick glimpse into the past on how government of this new state is helping start-ups

  • T-HUB- this is one of the biggest public and private partnership incubator centre helping start-ups take off in this competitive markets. It hosts entrepreneurs, investors, venture capitalists, advisors and mentors. 60 individuals from top academic institutions are playing mentor’s role. Large venture capital firms like Kalaari Capital, Peepul and Sequoia are associated with this hub. KTR has requested biggies like Microsoft CEO Satya Nadella, Adobe Systems CEO Shantanu Narayen, Biocon’s chairman and managing director Kiran Mazumdar Shaw to come forward as mentors and address the young entrepreneurs. Also venture capitalists in Silicon Valley connected with Hyderabad are also interested in the incubation centre.
  • Phase two of T-HUB will be completed by next year with office space of 3lakh sft to support more start-ups.
  • 100 million funds to be raised to support start-ups in T-HUB
  • The government is aiming to support around 5,000 start-ups in the state, which includes 1,000 startups in the tech products space; 400 startups in the clean-tech space, and 300 startups in the electronics sector.
  • Plans to collaborate with 20 global accelerators and incubators to build ‘plug-and-play’ workspaces through a public-private partnership (PPP) mode.
  • Float Rs 2,000 crore innovation fund across various sectors and set up Rs.250 crore seed fund.
  • Reimbursement of service tax paid by startups incubated with the help of government supported incubators for the first three years (for revenue less than 50 lakh).
  • Annual reimbursement of VAT/CST paid by all newly incubated startups for a period of the first three years (maximum of Rs 50 lakh turnover in the same period).
  • Reimbursement of 30% of the actual costs including international travel, subjected to maximum incentive amount of Rs 5 lakh per year.
  • Cost of filing and prosecution of patent applications will be reimbursed to the incubated startups, subjected to a limit of Rs 2 lakh per Indian patent awarded. For foreign patents, up to Rs 10 lakh will be reimbursed.
  • Offering recruitment assistance of Rs 10,000 per employee for the first year.
  • Startups recording 15% growth as per audit will be eligible for a 5% grant on turnover (limit of Rs 10 lakh for three years from incubation).
  • Entrepreneur-in-residence (EIR) certificates to be given to failed startup founders. This will help them get a job or join companies funded by VCs.
  • Sand-box model to help develop rural entrepreneurship to encourage entrepreneurial ventures by rural youth
  • Incubators in tire 2 and 3 cities to encourage entrepreneurship

On the whole the government is encouraging startups by providing a strong platform to take off from.


Rise of a startup state – Telangana
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