The COVID-19 pandemic has seriously dented the startup ecosystem in Odisha and many of them may shut shops and the impact would be devastating for all the stakeholders. So, the State Government should provide the required support to the sector to ensure its objective of creating employment and making contribution to the economy.
Startup Odisha CEO Raghu G has submitted a petition to Chief Minister Naveen Patnaik in this regard.
He informed that 595 entities of diversified sectors are registered as Startup with Startup Odisha. They include e-commerce, agri business, art and culture, ITES, jewellery, IT products and healthcare.
While it takes around seven to10 years for a startup eco-system to evolve and show its true potential, in Odisha, it is in a nascent stage, needing proper care and grooming.
In view of COVID impact, the startups need one time help to take care of their expenses.
Any company registered between April 1, 2019 and March 31, 2020 should get Rs 15,000 for six months starting May 1, 2020.
Any company registered before April 1, 2019 and in ideation stage to get Rs 25,000 for six months starting May 1, 2020.
Any company registered before April 1, 2019 and in pilot stage with at least one client should be provided Rs. 40,000 for six months.
Any company registered before April 1, 2019 and in growth stage with at least 15 client and/or revenue of Rs 1 lakh per month should get Rs 50,000 for six months.
The CEO also proposed to provide soft loans to the above four categories of startups. The Government can be the guarantor for the soft loans or disburse collateral free soft loans to interested startups. The four categories of startups should get approval to get soft loans up to Rs 5,00,000, Rs 7,50,000 (both payable in two-three years ), Rs 10,00,000 and Rs 15,00,000 (both payable in three-four years), respectively. The CEO also suggested that the Government provide credit guarantee for startups if the soft loan would take longer and is an issue.
Besides, he demanded that the Government expedite the process of approval for any pending application for financial assistance for any startup and also release of any payments towards subsidy or payment pending by any Government department.
Startups should be given priority to get Government projects apart from the existing incentives.
“At this dire time of extraordinary economic downturn, Startups need your support else all our collective efforts of the past few years will go in vain. We stand shoulder to shoulder with your efforts to collectively fight against the devastation brought over by COVID-19,” read the letter.