Incubators waive, cut rents of startups due to lockdown

Software Technology Parks of India, Hyderabad, offers rent-free premises to startups for four months from March to June

By Author  |  Published: 22nd Apr 2020  11:59 pm

Hyderabad: With lockdown on, select incubators have either waived the rentals or have reduced them for their incubatees as part of the efforts to deal with the current situation.

For instance, STPI, which is under the Ministry of Electronics & Information Technology (MeitY), has decided to waive the rents at its incubator for four months across the nation. In Telangana, it has two centres, one at Hyderabad and one at Warangal.

According to CVD Ramprasad, STPI Hyderabad Director, the decision to waive rents has been taken to support the startup community.

“We are offering rent-free premises for four months from March to June,” Ramprasad. This is applicable to both Hyderabad and Warangal centres. In Hyderabad, it was about 270 seats and in Warangal about 40 seats. The rents in the State capital is around Rs 5,000 to 6,000 per seat per month and about Rs 2,500 in Warangal, which is a tier II location.

Typically, those in the early stages take one or two desks while those in a growth phase take six to eight desks. The rentals are always on a per desk basis, he said.

The incubator concept has emerged as an essential infrastructure for the growth of high-technology businesses like information technology and software development. STPI has launched incubation or serviced office space facility in many of its centres for small and medium entrepreneurs (SMEs).

STPI incubation centres have work stations, cubicles, manager cabins, discussion rooms and conference halls. They offer internet, air-conditioned space, uninterrupted power supply system, standby DG power system, security system and access control and fire alarm system, he said. These incubators also aid in creation of 3X indirect jobs.

IIIT-H, which has an incubator with about 100 seats, has decided to cut the rent by 50 per cent for two months- April and May. The rentals per desk varies from Rs 4,500-6,500 in the normal times, according to Ramesh Loganathan, faculty, IIT-H.

T-Hub, the Telangana State Government initiative and the biggest incubator in the country now, has also reportedly cut the rentals, according to a person in the know. When contacted a senior official of T-Hub on this, he said he does not want comment on this.


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