Institutes must keep 1% of budget for startups : HRD Ministry

Institutes must keep 1% of budget for startups : HRD Ministry

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To develop a strong development as well as a startup ecosystem across all Higher education Institutions (HEIs) within the country, the Ministery for Human Resource Development (MHRD) has directed these to allocate no less than 1% for supporting innovations and startups as a part of its national guidelines.

Higher Education Institutions (HEIs) are responsible for creating a separate ‘Innovation Fund’ which will contribute a minimum of 1% of the annual budget of the institute and this budget will be for funding and supporting innovation and startups related activities.

The MHRD(Ministery for Human Resource Development) said in 40-page guidelines titled ‘the National Students and Faculty Startup Policy 2019 ‘.

HRD minister Ramesh Pokhriyal said Apart from promoting innovations and job creations among youth, the policy will also create a strong ecosystem to support startups in HEIs.

Institutional financial strategy should include any activity that involves investment in entrepreneurial and are allowed to raise funds through sponsorship and donations and engage their alumni network for promoting Innovation and Entrepreneurship.

Licensing of INR(Intellectual Property Rights) will be allowed to Students and Faculty from the respected institute and will also be allowed to work part-time for the startup. The institute can also take 2%-9.5% stake/equity in the startup. Additionally, it asked institutes to help pupils, who obtain several entrepreneurial ventures and permit institutes to make use of institute address to purchase a business and not behold from relaxing in the exam due to attendance.

Subrahmanyam, Secretary (Higher Education), MHRD said: “We want a large number of students and faculties to work on new way ideas and convert them into successful enterprises”.

The HRD ministry also launched the Atal Ranking of Institutions on Innovation Achievements (ARIIA) to rank all major educational institutions and universities on innovation and entrepreneurship development.

‘The National Students and Faculty Startup Policy 2019’, this framework/policy was prepared by a 15-member committee under the chairperson professor Ashok Jhunjunwala of Indian Institute of Technology, Madras.

This is a great opportunity for young India to prosper and start working on their ideas. However, this framework is yet to be implemented across the states…