Arunachal Doubles Its Startup Programme Intake to 100 and Raises Seed Money: What Founders Should Know

Arunachal Pradesh Chief Minister Pema Khandu announced a slate of startup and investment initiatives on 13 October 2026, and the part that matters most to founders is a bigger, better-funded state incubation programme. Everything below comes from a newspaper report of his speech, so these are the Chief Minister's statements, not a published government order.

He was speaking in Itanagar at a programme marking the graduation of Cohort 4 and the start of Cohort 5 of the Arunachal Pradesh Entrepreneurship Development Program (APEDP). The same event inaugurated satellite incubation cells in seven higher education institutions and signed MoUs with five more.

What changed in APEDP

According to the Chief Minister:

• Intake has been doubled. The programme will now take 100 startups instead of 50.
• Seed money has been raised. The report says it went from Rs 5 lakh to Rs 10 lakh, and from Rs 4 lakh to Rs 8 lakh. It does not say which figure applies to which kind of startup, so check the programme's own terms before you quote either number.
• Cohort 5 is roughly 100 entrepreneurs. They will go through a nine-month incubation at the Arunachal Pradesh Innovation and Investment Park (APIIP), with mentorship from reputed institutions including IIM.

For context, he said APEDP started in 2021, during the COVID-19 pandemic, and has helped launch more than 150 startups. He also noted that Arunachal Pradesh was among the top three States in the National Startup Ranking Framework on the occasion of 10 years of Startup India, and the only Northeast State to be recognised.

New initiatives he announced

• Arunachal Creative Economy (ACE) programme, run from the Chief Minister's Office. Khandu said it will give young people with creative ideas a platform to turn them into economic enterprises. How it works, who can join and whether it carries funding were not stated in the report.
• Institute for Transforming Arunachal (ITA), an expert think tank that he described as a "mini NITI Aayog" for the State. It will bring subject experts together to guide policy in sectors such as agriculture and allied activities and tourism.
• An investor meet. He said he is in touch with venture capitalists and will convene a conference where existing Arunachal startups can present their ideas to potential investors. No date or selection process has been announced.
• Workshops for APEDP alumni. He asked the Chief Secretary to organise expert workshops on reaching national and global markets through digital platforms.
• YES (Youth Empowerment Sphere) Arunachal portal. He launched it as a single window on APIIP for Central and State schemes.

He also directed the APIIP CEO to expedite its conversion into a Section 8 company, a move he said he approved after announcing it at last year's programme.

The decision still to come: incentives for graduating startups

This is the item to watch, and it is not final. The Chief Minister directed the Planning and Investment Department and the APEDP cell to consult the Department for Promotion of Industry and Internal Trade (DPIIT) on State incentives, including possible income tax-related support, for graduating startups that move from proprietorships to private limited companies or LLPs.

The report says a policy decision is expected in the coming days. Nothing has been announced yet: no incentive amounts, no eligibility conditions and no way to apply. Until an order is published, do not plan your company structure around a benefit that may not exist.

Campus incubation cells

Satellite incubation cells were inaugurated virtually at the seven institutions that signed MoUs last year:

• Rajiv Gandhi University
• Arunachal Pradesh University (Pasighat)
• Arunachal University of Studies (Namsai)
• NIT Jote
• NEDIS Nirjuli
• Dera Natung Government College (Itanagar)
• Dorjee Khandu Government College (Tawang)

New MoUs were signed with five more institutions: Donyi Polo Government College, Kamki; Government College, Bomdila; Indira Gandhi Government College, Tezu; Government Model College, Seppa; and St. Claret College, Ziro. The report does not describe what a satellite cell offers students or local founders.

Other schemes and advice from the speech

Khandu encouraged entrepreneurs to look at the MSME sector, saying banking networks can help with capital and, where required, land. He also pointed to the Central Government's UNNATI scheme for the Northeast and to the State's Deen Dayal Upadhyaya Swavalamban Yojana, Chief Minister Paryatan Vikas Yojana and Atmanirbhar scheme for agriculture, horticulture and fisheries. The report names these but gives no terms for any of them. He also urged youth to take part in the National Innovation Challenge under Sewa Sankalp Abhiyan.

His practical advice to the young entrepreneurs was plain:

• Keep learning about government policy, company law, the Arunachal Pradesh State Industrial and Investment Policy and the new labour laws.
• Bookkeeping is a weak area among local entrepreneurs, so every business should engage a chartered accountant, maintain annual balance sheets and file income tax returns even where tax liability is nil.
• Build on the State's 20 Geographical Indication (GI) tags through value addition and digital marketing.

What this means for you

• Based in Arunachal Pradesh and early stage? APEDP is now larger, and the Chief Minister says seed money is higher. The report does not give an application window or steps, so look for the next call from APIIP rather than relying on this summary.
• Planning to incorporate? Wait for the policy decision on incentives before choosing between a proprietorship, a private limited company or an LLP for tax reasons alone. It is expected, not announced.
• Have a creative idea or a product that could use a GI tag? The Chief Minister pointed to the ACE programme and the State's GI tags, but details are still missing.
• Seeking investors? Watch for the investor conference. Be ready with clean books, because the Chief Minister himself called bookkeeping a weak spot.
• In a partner college's area? Ask your institution what its satellite incubation cell will offer.

Source: Eastern Sentinel report on the Chief Minister's speech at the APEDP Cohort 4 graduation and Cohort 5 commencement programme.

Cover photo: Mayur More on Unsplash