Jammu, Feb 22 (IANS): The Jammu and Kashmir Administrative Council (AC) which met under the chairmanship of Lieutenant Governor, Manoj Sinha, approved the J&K Startup Policy 2024-27, an official statement said on Thursday.

The policy has the objective of setting up 2,000 startups in J&K in the next five years.

"The Government of Jammu & Kashmir will set up a Venture Capital Fund of Rs 250 crore and will infuse a maximum of Rs 25 crore as an initial fund to this venture capital fund," the statement said.

"The venture capital fund so created shall invest primarily in recognised start-ups of Jammu & Kashmir. The department shall work out detailed modalities for creation of the venture fund and its usage in consultation with the Finance Department," the statement said.

The statement added that the department may also work out a mechanism to facilitate allotment of land to startups having good potential for growth.

"There is also a provision of one-time assistance as seed funding of up to Rs.20 lakh (four equal installments) to be provided to startups recognised by JKEDI which is a nodal agency for startups. For seed funding there is cap of 25 startups per year which is a decision based upon the available budget and desire to support a manageable number of startups effectively," the statement said.

"The Government is committed to establish 2,000 startups in but by providing seed funding to a smaller number of carefully-selected startups, the Government can prioritise quantity over quality for long-term economic growth. This will also ensure that the resources are utilised efficiently. The budgetary support for implementation of the Startup Policy for a period of three years will be Rs 39.60 crore," it said.