Ahmedabad, March 20 (SocialNews.XYZ) Gujarat's Ahmedabad will now have a municipal-level startup policy that opens the city's core infrastructure to innovators, positioning it as a real-world testing ground for solutions to urban challenges.
On Friday, the Ahmedabad Municipal Corporation (AMC), in coordination with Smart City Ahmedabad Development Limited (SCADL), announced the 'Ahmedabad Innovation and Startup Policy 2026'.
Officials described it as a first-of-its-kind initiative at the municipal level in India, aimed at enabling startups and innovators to test and scale solutions within the city.
"Ahmedabad will function as a living laboratory where startups, young innovators, researchers and students can test their ideas in real-world conditions," an AMC official said, adding that the focus would be on deployable solutions to civic issues such as pothole repairs, flood forecasting, waste management and air pollution control.
The policy provides for an innovation fund of Rs 250 crore over five years, with Rs 50 crore to be allocated annually.
The funding will support pilot projects, proof-of-concept initiatives and the scaling up of successful models.
Selected startups will be eligible for financial assistance of up to Rs 35 lakh.
"The support will be provided without the requirement of bills or invoices, which significantly reduces procedural barriers for startups," the official said.
Clear procurement thresholds have been laid out under the policy.
Projects up to Rs 7.5 lakh will be considered for pilot funding and proof-of-concept grants with approval from a screening committee, which will also be authorised to issue direct work orders for proven solutions within this limit.
For projects between Rs 7.5 lakh and Rs 15 lakh, approval for direct procurement will be granted by the Board of Management (BoM).
Projects between Rs 15 lakh and Rs 35 lakh will follow a limited bid challenge process among startups, subject to BoM approval.
For projects exceeding Rs 35 lakh, an open bidding process involving all firms will be undertaken, including provisions such as the Right of First Refusal (ROFR), with final approval resting with the BoM.
Startups selected under the policy will be given direct access to municipal infrastructure, including water supply networks, waste collection systems, street lighting, Bus Rapid Transit System (BRTS) corridors, drainage systems and urban health centres.
"The emphasis is not on presentations but on solutions that demonstrate measurable impact on the ground," the official added.
The policy also introduces fiscal incentives.
Startups working with AMC will be eligible for up to 50 per cent property tax exemption for a period of three years for office spaces up to 250 square metres.
Co-working spaces will be facilitated under a public-private partnership model, and community halls and auditoriums will be made available at subsidised rates to support events, workshops and investor interactions.
Officials said that intellectual property rights for technologies developed under the programme will remain with the startups.
The AMC will obtain usage rights through licensing, while SCADL may take an equity stake of around 2 per cent only after successful implementation and on a case-by-case basis.
"No equity will be taken during the pilot stage," the official clarified.
In large-scale projects, AMC has reserved 15 per cent of work for startups in contracts valued above Rs 50 crore, in accordance with Central government's MSME guidelines.
The inclusion of the ROFR is expected to enable startups to retain a competitive position in the tendering process.
A common digital portal will be launched to facilitate applications, provide information on urban challenges, enable submission of solutions, connect innovators with mentors and offer access to tender-related information.
In addition, AMC will organise an annual innovation and startup festival of three to five days, featuring startup expos, hackathons, pitching sessions and demonstration events.
Eligibility under the policy extends to DPIIT-recognised startups as well as students, researchers and individual innovators across the country.
Applicants, who are not formally registered at the time of selection, will be given six months to complete the process.
According to officials, the policy has been developed over the past year through consultations with startups, industry experts, academic institutions and other stakeholders.
"The framework addresses the operational challenges faced by startups while working with government systems and provides a practical, implementation-oriented model," the official added.
With the rollout of the policy, AMC has established a structured mechanism for collaboration between the city administration and the innovation ecosystem, allowing the testing and scaling of solutions within an urban environment.
Source: IANS
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