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AMC bets Rs 250 crore on startups to fix civic issues

Ahmedabad Municipal Corporation (AMC) is shifting beyond conventional contracting, opening roads, drains and public facilities to startups under the Ahmedabad Innovation and Startup Policy 2026. Backed by Rs 250 crore over five years and developed with Smart City Ahmedabad Development Limited, the policy positions startups as civic problem-solvers across pothole repairs, waste management, flood prediction and air quality monitoring.

AMC administrator Mukesh Kumar said startups would gain access to real projects and funding. Selected ventures receive up to Rs 7.5 lakh at the pilot stage, with 70 per cent paid upfront and no invoice requirement. They can test solutions on live infrastructure including water supply networks, drainage systems, BRTS corridors, waste routes and public health facilities.

The policy offers up to 50 per cent property tax relief on office space for three years and co-working support via public-private partnerships. Intellectual property remains with startups, while AMC retains usage rights. In some cases, agencies may take a minor equity stake once revenue begins.

Startups are guaranteed 15 per cent of work in civic projects above Rs 50 crore, along with right of first refusal for those that have completed pilots. An annual Rs 50 crore allocation will fund pilots and scale successful solutions.

A proposed digital portal will host applications, problem statements and mentorship links, while innovation-linked bonds, hackathons and an annual festival aim to sustain engagement.

Eligibility extends to any DPIIT-recognised startup in India, as well as students, researchers and individual innovators, who will have six months to incorporate after selection.