Ahmedabad Municipal Corporation has approved the Ahmedabad Innovation and Startup Policy 2026, creating a five-year ₹250 crore innovation fund and opening civic infrastructure to startups developing solutions for potholes, flood forecasting, waste management and other urban challenges.
The policy was cleared at a committee meeting held on October 23 in coordination with Smart City Ahmedabad Development Limited (SCADL). AMC said the programme would focus on solutions that can be tested and used on the ground rather than only presented to officials.
Under the policy, startups can begin with projects valued at ₹5 lakh. Selected ventures will be eligible for assistance of up to ₹35 lakh, while the annual allocation to the innovation fund will be ₹50 crore for the next five years. The fund will support pilot projects, proof-of-concept work and the expansion of solutions that have demonstrated results.
AMC has also set out different approval and procurement routes based on project value. Pilot funding and proof-of-concept grants of up to ₹7.5 lakh can be approved by a screening committee. The committee will also have authority to issue direct procurement approvals and work orders for proven solutions up to that amount.
For proven solutions between ₹7.5 lakh and ₹15 lakh, direct procurement and work-order approvals will require the sanction of AMC’s Board of Management. Projects above ₹15 lakh and up to ₹35 lakh will be taken through a limited-bid tender process involving startups and will also require Board of Management approval. Projects above ₹35 lakh will use an open-bid process involving all eligible firms, with a right-of-first-refusal and bid-challenge mechanism. Final approval in these cases will rest with the Board of Management.
The policy will allow startups access to municipal systems and facilities including water-supply networks, waste-collection systems, street lighting, BRTS corridors, drainage infrastructure and health centres. The stated objective is to allow companies to test urban solutions in operating environments rather than restrict them to demonstrations.
Startups working with AMC will receive up to 50% relief on property tax for three years for offices measuring up to 250 square metres. The civic body will also make coworking spaces available through a public-private partnership model. Community halls and auditoriums may be used as innovation hubs for startup events, workshops and investor meetings, although the policy does not provide for direct land allotment.
Ownership of technologies and solutions developed by startups will remain with the companies. AMC will obtain a licence to use the solutions, while SCADL may acquire an equity stake of up to 2% on a case-by-case basis after successful implementation. No equity will be taken during the pilot stage, according to the reported guidelines.
AMC has further reserved 15% of the work in projects worth more than ₹50 crore for startups, while following central government MSME guidelines. A common digital portal will be created for applications, access to information on city problems, mentor connections and tender-related updates. The corporation also plans to hold a three-to-five-day innovation and startup festival each year featuring expos, hackathons, pitching sessions and demo days.
DPIIT-recognised startups from across India, along with students, researchers and individual innovators, will be eligible to apply. Unregistered applicants who are selected will reportedly receive six months to complete registration. The policy’s implementation will be governed through the screening committee, AMC’s procurement structure and the Board of Management, with the next operational step being the creation of the application and information systems.
