STPI on massive drive to promote start-up ecosystem

Is building 1.5 mn sq ft of space across tier I, II cities to support entrepreneurship across the country

The government seems to be going all out to push the start-up ecosystem in the country.

Software Technology Park of India (STPI), which played a pivotal role in building the present day IT outsourcing services industry, is now creating massive infrastructure all across the country with an aim of incubating and promoting the start-up ecosystem and entrepreneurship.

As per the plan, the autonomous body under the Ministry of Communications and Information Technology, is developing a whopping 1.5 million square feet of space across almost 53 cities in the country. 

Budding entrepreneurs aspiring to start their entrepreneurial journey can use the plug-in-play infrastructure at a 'promotional rate' and incubate their ventures, enjoying the various schemes and other support mechanism that the government is planning to come out with, STPI Director Omkar Rai told Business Standard.

Of the total infrastructure, some 65,000 square feet of space being developed in Gurgaon is almost ready to be handed over to STPI while the construction of about 1.4 lakh sq ft building area is in progress in Mohali, Chandigarh. Besides, around 1.25 lakh sq ft of space is coming up in Bengaluru, 40,000 sq ft in Mysore and around 1.95 lakh sq ft is coming up in Kolkata. 

“Within three years, the entire infrastructure as we have planned would be ready and our plan is to promote at least 1,000 start-ups out of these facilities over the next five years,” said Rai.

“Over and above physical infrastructure, we are going to come out with various schemes, programmes and incentives which are required to support the entrepreneurs,” he added.

STPI, formed as an autonomous society in 1991, played a key role in promoting and boosting software exports from India in the initial days. Even though the tax holiday under section 10A and 10B of the Income Tax Act for most of the software units located in various STPI units is already over, still they account for almost 65% of the overall software services exports in the country.

“As far as STPI is concerned, we are looking beyond the promotion of traditional IT outsourcing by diversifying into areas like entrepreneurial development, supporting incubation programmes, product companies and dispersal of the IT industry beyond the metros. It is time for us to go for incubation and promotion of start-up culture and entrepreneurship in the country,” he added.

Under its 10,000 start-up programme, industry body Nasscom is also working with various state governments to set up ‘start-up warehouses’ wherein apart from the physical infrastructure, it is providing the start-ups with mentorship support. 

“There is enough interest across the board to promote the start-up environment in the country. Today’s young entrepreneurs want to operate from wherever they are, in locations of their choices, and initiatives like this are very much needed at this stage of the industry,” said Ravi Gururaj, a serial entrepreneur and also chairman of the Nasscom Product Council.

Nasscom already operates a start-up warehouse in Bengaluru, which is of around 9,000 sq ft. The second such facility with a seating capacity of 500 people is also coming up in Bengaluru with an area of 40,000 square feet. Besides, Nasscom has recently launched a 6,000 sq ft start-up warehouse in Kolkata with a capacity of 60 seats.