To give a boost to startups, the Centre has initiated an exercise to rank states and union territories on the basis of measures being taken by them to promote budding entrepreneurs, a government official has said.

"We have discussed the initial framework. Soon, we will be formalising that. By next month, we will be able to prepare that," the official added.

The Department of Industrial Policy and Promotion (DIPP) will facilitate the process of ranking and it would be done by a third party.

"We are holding detailed consultations on parameters over which ranking can be done," the official, who did not wish to be named, said.

The framework for ranking states/UTs on the basis of initiatives taken by them to promote startups was discussed in the state startup conference earlier this month.

Parameters, which are under discussion, for the rankings include a well-defined startup policy, startup cell, portal, network of mentors, participation in the public procurement, number of incubators/accelerators and kind of funding support and tax incentives.

Several states like Odisha, Karnataka, Rajasthan are taking several measures to promote startup ecosystem.

The DIPP with the help of World Bank already ranks states in terms of measures they are taking to promote ease of doing business.

The government has launched the Startup India Action Plan to promote budding entrepreneurs in the country. The plan is aimed at giving incentives such as tax holiday and inspector raj-free regime and capital gains tax exemption.