The Ahmedabad Municipal Corporation (AMC), in coordination with Smart City Ahmedabad Development Limited (SCADL), on Friday announced the ‘Ahmedabad Innovation and Startup Policy 2026,’ touted as a first-of-its-kind initiative at the municipal level.To address urban challenges through new technologies and innovative ideas, startups will be given priority in large projects. In AMC projects exceeding Rs 50 crore, up to 15 per cent of the work will be reserved for startups, said a statement.This scheme will be rolled out as per the Centre’s MSME guidelines. Through the provision of the Right of First Refusal (ROFR), startups will be allowed to advance their solutions during the tendering process.The possibility of raising funds through ‘Innovation Bonds’ is under consideration to scale successful solutions across the city.“Under this policy, Ahmedabad will emerge as a “living laboratory” for startups, young innovators, researchers, and students from across the country, where they will be able to test their innovative technologies and ideas in real-world conditions. Startups will be directly given opportunities to address issues such as rapid repair of potholes, flood prediction, smarter waste management and reduction of air pollution,” AMC authorities said.The AMC has announced a total Innovation Fund of Rs 250 crore for the next five years, with Rs 50 crore to be allocated annually. This fund will be utilised for pilot projects, proof of concept, and scaling of successful models. The selected startups will receive financial assistance exceeding Rs 35 lakh. No bill or invoice will be required in this process, which is expected to provide significant relief to startups.Under the policy, procurement thresholds have been clearly defined to avoid ambiguity, revealed AMC officials. For projects up to Rs 7.5 lakh, pilot funding support and grants for proof of concept will be approved by the Screening Committee, and direct procurement and issuance of work orders for proven solutions up to Rs 7.5 lakh will also fall under its authority.For projects ranging from Rs 7.5 lakh to Rs 15 lakh, approvals will be granted by the Board of Management (BoM). For projects above Rs 15 lakh and up to Rs 35 lakh, a bid challenge process with limited bids from startups will be undertaken, subject to approval by the Board of Management. For projects exceeding Rs 35 lakh, a bid challenge process with open bids from all firms along with the Right of First Refusal (ROFR) will be followed, with final approval resting with the Board of Management (BoM).Story continues below this adThe policy provides startups with direct access to key urban infrastructure, including water supply networks, waste collection systems, street lighting, BRTS corridors, drainage systems, and health centres. AMC’s focus will be on solutions that are implemented on the ground rather than mere presentations.As per the policy, AMC has announced property tax concessions for startups. Startups working with AMC will receive up to 50 per cent tax concession for three years, applicable to office spaces up to 250 square metres. Co-working spaces will also be facilitated under the PPP model, and community halls and auditoriums will be repurposed as innovation hubs, though no direct land allotment will be provided.A key feature of the policy is that intellectual property rights for technologies and solutions developed by startups will remain with the startups themselves. AMC will only obtain a usage licence. SCADL may take up to a two per cent equity stake on a case-by-case basis only after the startup achieves success, while no equity will be taken during the pilot stage.Further, to strengthen the startup ecosystem in the city, AMC will provide auditoriums and public halls at subsidised rates for hosting startup events, workshops, and investor meets.Story continues below this adA common digital portal will also be launched for startups, enabling them to apply, identify city challenges, propose solutions, connect with mentors, and access procurement-related information. AMC will also organise an annual 3 to 5-day Innovation and Startup Fest, featuring a startup expo, hackathons, pitching sessions, and demo days.Under this policy, DPIIT-recognised startups from across India, as well as students, researchers, and individual innovators, will be eligible to apply. Those not yet registered will be given six months to complete their registration after selection.“The policy has been developed over the past year through consultations with startups, industry experts, academic institutions, and other stakeholders. It addresses the challenges faced by startups in working with government systems and presents a practical, implementation-oriented model,” a senior AMC official said.The official added that with this policy, Ahmedabad will emerge as a living laboratory for urban innovation, where startups can build, test, and scale their solutions.