Bhubaneswar, (IANS) : The Odisha cabinet on Tuesday approved a new Start-up Policy 2016 targeting to set up 1,000 start-ups in next five years.

“The policy targets setting up at least 1,000 start-ups in the next five years attracting substantial venture and angel capital to the state with sizable attractive employment opportunity for the educated youths,” said Chief Secretary Aditya Prasad Padhi.

The government would make a budgetary provision of Rs 25 crore to set up a Start-up Capital Infrastructure Fund to encourage the start-ups in the state.

Besides, it would participate in the private state specific funds for start-ups to set up operations in the state, said Padhi.

With the state government envisaging to be amongst top three startup hubs in India by 2020, the policy aims to usher in an innovation and startup eco-system through the creation of world-class incubation centres, funding and a supporting incentive structure at par with other states.

The government would provide various incentives to the new ventures for their sustenance.

Universities and colleges would be eligible for one-time capital grant of 50 per cent of capital cost excluding the cost of building up to a maximum of Rs 1 crore to set up incubation facility, said the chief secretary.

An amount of Rs 10,000 per month would be provided to a start-up for a period of one year only if it has got the seed round funding approval.

Besides, reimbursement up to Rs 1 lakh per year for three years will be provided to institutions, incubators, and industries for providing free internet, free electricity, and mentoring services.