Delhi Govt Announces INR 200 Cr Venture Capital Fund in New Startup Policy 2025

In order to assist and facilitate the formation of at least 5,000 startups by 2035, the Delhi government has produced the draft “Delhi Startup Policy, 2025”. The government plans to launch a venture capital fund with a value of INR 200 Cr under the draft policy.

Benefits for Startups: Rentals, Patents, and Operating Expenses

According to the draft policy, the Government of the National Capital Territory of Delhi (GNCTD) may host experiential learning workshops in collaboration with prominent investor networks to educate high-net-worth individuals and prospective investors on the ins and outs of startup investing.

Additional benefits include a 100% reimbursement of leasing rentals for a maximum of three years, up to INR 10 lakh annually. Full reimbursement for filing patent designs up to INR 3 lakh for foreign filings and INR 1 lakh for domestic filings. For a year, a monthly allocation of INR 2 lakh will be given for operating expenses.

New Incubation Centres and Coworking Spaces in Delhi

In addition to the funding, the programme suggests establishing new coworking spaces or incubation centres to offer operational and capital support “over and above” the current Central government subsidies for a five-year term.

In order to mentor businesses situated in the nation’s capital, the Delhi government will also look into forming alliances with academic institutions, incubators, government labs, and financial organisations.

Virtual Incubation and Mentor Network via Delhi Incubation Hub

Through the Delhi Incubation Hub network, the Delhi government will offer entrepreneurs virtual incubation services so they can connect with mentors and experts. A policy monitoring committee will also be established by the BJP government, with the commissioner of industries serving as its head.

The group will also include a few industry specialists, the secretary of the planning department, and the deputy commissioners of the industries department.

Startup Task Force to Monitor Policy Implementation

Additionally, the policy suggests forming a “Startup Task Force” to review and approve applications submitted to obtain benefits under the programme. Five industry experts and two commissioners from the industries department would lead this force.

Every six months, the task team will be in charge of assessing the state of implementation. The state government’s emphasis on encouraging entrepreneurship coincides with the rapid expansion of the startup scene in the nation. With about 1.9 lakh firms that have funded over $164 billion to date, the Indian startup ecosystem is currently the third largest in the world.

Comparison with Haryana and Andhra Pradesh Startup Policies

States around the country are enacting specific laws to support startups in an effort to boost the local economy and generate employment. For example, as part of its state startup policy, the state of Haryana recently asked private investors to donate INR 2,000 Cr to a “Fund of Funds”.

In addition, the government of Andhra Pradesh recently unveiled the “AP Innovation & Startup Policy (4.0) 2024-2029”, which aims to establish 20,000 new companies over the course of the following five years.