Ahmedabad Municipal Corporation has approved the Ahmedabad Innovation and Startup Policy 2026, creating a five-year ₹250 crore innovation fund and offering startups access to municipal infrastructure for testing solutions related to potholes, flood forecasting, waste management, water supply, drainage, street lighting, BRTS corridors and health centres.
The policy was approved in coordination with Smart City Ahmedabad Development Limited (SCADL), with guidelines finalised at a committee meeting held on October 23. The civic body said it would prioritise solutions that work on the ground rather than proposals limited to presentations.
Under the policy, startups can begin with projects valued from ₹5 lakh. Projects up to ₹7.5 lakh for pilot funding and proof-of-concept grants may be approved by a screening committee. The same committee will also have the authority to approve direct procurement and issue work orders for proven solutions up to ₹7.5 lakh.
For proven solutions costing between ₹7.5 lakh and ₹15 lakh, direct procurement and work orders will require approval from the Board of Management. Projects above ₹15 lakh and up to ₹35 lakh will be taken through a limited-bid tender process involving startups, with approval from the Board of Management. Projects exceeding ₹35 lakh will use an open-bid process involving all firms, along with a right-of-first-refusal mechanism. Final approval in these cases will also rest with the Board of Management.
The policy provides for total annual funding of ₹50 crore over five years. The fund will support pilot projects, proof-of-concept work and the expansion of successful models. Selected startups may receive assistance of up to ₹35 lakh. The policy does not require bills or invoices for this assistance, according to the report.
Startups working with the AMC will also be eligible for up to 50% relief on property tax for three years for offices measuring up to 250 square metres. The civic body plans to make co-working spaces available through a public-private partnership model and use community halls and auditoriums as innovation hubs. Direct land allocation will not be provided.
The policy states that startups will retain ownership of the technology and solutions they develop, while the AMC will obtain a licence to use them. SCADL may acquire an equity stake of up to 2% on a case-by-case basis after a solution succeeds; no equity will be taken during the pilot stage.
For AMC projects valued above ₹50 crore, 15% of the work will be reserved for startups, in line with applicable Ministry of Micro, Small and Medium Enterprises guidelines. The right-of-first-refusal mechanism will also give startups an opportunity to advance their solutions during the tender process.
A common digital portal is planned for applications, identifying city problems, connecting applicants with mentors and sharing tender information. The AMC also plans to hold a three-to-five-day innovation and startup festival every year, featuring startup exhibitions, hackathons, pitching sessions and demo days. DPIIT-recognised startups from across India, along with students, researchers and individual innovators, will be eligible to apply. Applicants who are not registered may receive six months to complete registration after selection.
