Jharkhand Startup Policy: Utility Bills Reimbursement

• Jharkhand-registered startups at product or revenue stage seeking utility bill reimbursement.

About this scheme

The Jharkhand Startup Policy offers a Utility Bills Reimbursement program, specifically designed to mitigate the operational burden for emerging businesses within the state. This initiative is a core component of the efforts by the Department of Information Technology and E-Governance, Government of Jharkhand, which operates under the broader mandate of Startup Jharkhand. The department's primary objective is to cultivate a dynamic and supportive ecosystem for local entrepreneurs, driving innovation, fostering job creation, and contributing significantly to the state's economic development through strategic incentives and effective infrastructural support. This program underscores the state government's commitment to nurturing its entrepreneurial talent and creating a conducive environment for startups to thrive from their early stages.

Under this particular program, eligible startups are entitled to receive a 30% reimbursement on their internet and electricity bills, which are crucial and often substantial expenses for any modern business. This financial assistance is structured with an annual cap of Rs. 60,000, ensuring a sustained and meaningful benefit for participating entities over a period of up to five years. The reimbursement model is designed for annual disbursement, providing consistent financial relief and enabling startups to forecast their operational expenses more effectively, thereby aiding in long-term financial planning and stability.

The funds provided through this scheme are precisely earmarked for covering essential utility expenditures, specifically internet connectivity and electricity consumption. By directly addressing these recurring costs, the policy aims to free up valuable working capital for startups. This liberated capital can then be strategically re-invested into critical growth areas such as research and development, scaling market presence, hiring key talent, or enhancing product offerings, thereby accelerating their trajectory within the competitive landscape. This financial cushioning allows startups to focus more on innovation and growth rather than being constrained by routine operational overheads.

While the program primarily offers direct financial support, its existence as a government-backed initiative provides an indirect endorsement and a supportive framework for startups operating in Jharkhand. This commitment from the state government fosters a business-friendly environment, signaling a proactive approach to nurturing innovation and entrepreneurship, which, in turn, can attract further investment and talent to the region. The overall objective is to solidify Jharkhand's position as a hub for innovation and entrepreneurship, providing tangible financial relief for operational stability and encouraging sustained growth.

Who can apply

• The startup must be formally registered within the state of Jharkhand. This ensures the program directly supports the state's local economy and fosters entrepreneurship within its geographical boundaries.
• The annual turnover of the startup must be less than Rs. 25 Crore. This criterion targets small and medium enterprises, ensuring the financial assistance helps businesses during their scaling phase rather than large, established corporations.
• The startup must have been incorporated for a period of less than 5 years. This temporal limit is set to support early-to-mid-stage startups during their most vulnerable and high-growth periods, where operational costs can significantly impact their sustainability.
• The total number of employees in the startup must be up to 50 individuals. This condition supports growing businesses without extending benefits to very large organizations, aligning with the program's focus on nurturing emerging ventures.
• Utility bills, specifically for internet and electricity, must be issued in the startup's name or its registered office address. This is a crucial verification step to prevent misuse and ensure that the reimbursements are directly tied to the startup's legitimate operational expenses.

Eligible entity types: Private Limited, LLP

Benefits & funding

• Startups receive 30% reimbursement on internet and electricity bills, up to an annual cap of Rs.
• 60,000, for up to five years.
• This financial aid mitigates operational burden, frees up working capital for R&D, market scaling, hiring, or product enhancement.
• It also provides an indirect endorsement and fosters a business-friendly environment.

How the application process works

The journey below is informational, compiled from the official program guidelines. Applications are submitted directly with Department of IT and E-Governance, Government of Jharkhand, in your own name.

1. 1

   Applications are submitted through the Startup Jharkhand portal with utility bill receipts and supporting eligibility documents.

2. 2

   Applications undergo verification by the competent authority under the Jharkhand Startup Policy.

3. 3

   Approved startups receive reimbursement of eligible utility expenses as per the policy's prescribed limits.

Documents checklist 3

• Internet and Electricity Bills
• Proof of Utility Bill Payment
• Bank Details

Need help getting these in order? IncorpX provides assistance for incorporation, DPIIT recognition, MSME and GST registrations along with document preparation.

Frequently asked questions