Introduction
Over the past few years, Raipur has emerged as one of Chhattisgarh’s most promising start-up destinations. With the rise of tech, manufacturing, and agri-based ventures, local entrepreneurs are showing that innovation isn’t limited to metro cities anymore.
But to fully unlock funding, support, and incentives from the Government of India, start-ups need one essential credential DPIIT recognition under the Start-up India Initiative.
Once recognized, start-ups become eligible for several central and state government schemes designed to boost innovation, create employment, and encourage entrepreneurship.
Here’s a detailed guide to the top government schemes Raipur start-ups can avail after DPIIT recognition.
1. Startup India Seed Fund Scheme (SISFS)
Purpose:
To provide early-stage funding for idea validation, prototype development, product trials, and market entry.
Funding Support:
- Up to ₹20 lakh as grant for proof of concept or prototype.
- Up to ₹50 lakh as investment for product commercialization.
Eligibility:
- DPIIT-recognized start-up.
- Incorporated not more than 2 years ago.
- Must not have received funding from other government schemes.
Example:
A Raipur-based start-up, EcoHarvest Solutions, received ₹35 lakh in 2024 under SISFS to develop eco-friendly fertilizer packaging. The fund helped them scale production and reach new markets.
2. Fund of Funds for Startups (FFS)
Purpose:
To provide growth-stage capital support through Alternate Investment Funds (AIFs).
Managed By:
SIDBI (Small Industries Development Bank of India)
How It Works:
The government doesn’t directly invest in start-ups. Instead, it funds AIFs, which then invest in DPIIT-recognized start-ups with scalable business models.
Benefit for Raipur Start-ups:
This allows start-ups from smaller cities to access national-level venture funds putting them on equal footing with metro-based competitors.
3. Income Tax Exemption under Section 80-IAC
Benefit:
Recognized start-ups can claim a 100% income tax exemption for 3 consecutive years within their first 10 years of incorporation.
Eligibility:
- DPIIT recognition certificate.
- Start-up incorporated as a Private Limited Company or LLP.
- Annual turnover not exceeding ₹100 crore.
Advantage:
This exemption helps Raipur start-ups retain profits and reinvest them into business growth and hiring.
4. Exemption from Angel Tax (Section 56(2)(viib))
Earlier, start-ups faced taxation on funds raised above fair market value.
Now, DPIIT-recognized start-ups are exempt from Angel Tax, making it easier to raise capital from angel investors and venture capital firms.
Impact:
This benefit increases investor confidence and encourages funding into Chhattisgarh-based start-ups that might otherwise face valuation disputes.
5. Self-Certification for Labour and Environmental Laws
Recognized start-ups can self-certify compliance under nine major labour and environmental laws for five years from incorporation.
This includes:
- Payment of Gratuity Act, 1972
- Contract Labour (Regulation and Abolition) Act, 1970
- Water (Prevention and Control of Pollution) Act, 1974
Benefit:
It reduces inspection risks and administrative burdens allowing Raipur start-ups to focus more on product development and scaling.
6. Intellectual Property (IPR) Support – Patent & Trademark Rebates
DPIIT-recognized start-ups enjoy:
- 80% rebate on patent filing fees.
- 50% rebate on trademark registration fees.
- Fast-track examination of applications.
Example:
A Raipur-based medical device start-up filed its product patent at just 20% of the usual cost, saving nearly ₹40,000 – a huge advantage for early-stage founders.
7. Government e-Marketplace (GeM) Access
Recognized start-ups can register on the Government e-Marketplace (GeM) platform to sell products and services directly to central and state departments.
Benefits:
- No requirement for prior turnover or experience.
- Direct access to government buyers.
- Faster payment cycles.
This gives small Raipur start-ups a chance to supply to government projects a market worth thousands of crores annually.
8. Credit Guarantee Scheme for Start-ups (CGSS)
Purpose:
To provide collateral-free loans to DPIIT-recognized start-ups through financial institutions.
Coverage:
Up to ₹10 crore per borrower for term loans or working capital.
Benefit for Raipur Entrepreneurs:
Removes one of the biggest barriers to growth lack of collateral helping start-ups in manufacturing, logistics, and tech sectors secure easy credit.
9. State-Level Schemes in Chhattisgarh
The Chhattisgarh Innovation and Entrepreneurship Development Policy complements DPIIT recognition with:
- Subsidized incubation space at Naya Raipur.
- Reimbursement of patent registration costs.
- Grants for women and rural innovators.
- Priority under Mukhyamantri Yuva Udyami Yojana for young entrepreneurs.
These state programs aim to make Raipur a regional innovation hub for Central India.
Conclusion
For start-ups in Raipur and across Chhattisgarh, getting DPIIT recognition is just the beginning it’s the key that unlocks a wide range of government funding, tax exemptions, and business support schemes.
From early-stage idea validation under SISFS to collateral-free loans under CGSS, these programs ensure that innovation from smaller cities gets the same national exposure and backing as start-ups from major metros.
In short, once your Raipur start-up earns DPIIT recognition, you gain access to a complete support ecosystem financial, legal, and strategic designed to help you build, grow, and compete nationally in 2025 and beyond.
– Written and Edited by – Shruti Goyal (B.A.LL.B)
