The Department of Bio-Technology (DBT) in a proposal to the Department of Industrial Promotion and Policy demanded that the requirement of registration of entities not prior to five years should be extended to eight years since the maturation period for this industry is more than other industries.
According to a media report quoting a Government official, DIPP is considering accepting the proposal and the changes in rules might reflect soon. This change in the duration to be eligible will redefine the start-ups, something that the DIPP is planning to bring about.
Under the present definition, a start-up refers to an entity registered in the country not prior to five years, also the entity must not have turnover more than 25 crore rupees.
The official added that the changes in start-up eligibility criteria will be formulated and implemented only for the bio-tech firms, whereas other sectors will have to adhere to the existing definition and norms.
Also to boost the sector, the public procurement norms for the MSMEs have been eased by the department.
Talking about the tax incentives, the official said that DIPP cannot bring in any changes in tax incentives as this comes under finance ministry and not the ambit of DIPP.
Read More : KNN India