As of one minute ago the "changed" text reads,
"We don't want you to go to your accommodation before 12 midnight - so we provide you mattresses near your workspace for resting (well, we've got limited resources - can't provide you AC accommodation - so thats the least we can do to ensure that you beat the summers in Ahmedabad). There's anyways a security guard outside your work-area - so you don't get to leave the office before 12 midnight and you don't get to sleep in the office. Attendance happens at 9:30 am every morning. Sundays are off if you have met your weekly goals! (we got to be kidding on this!!)
End results are more important to us !! "
we don't want you to leave before midnight - check
you don't get to sleep in the office - check
attendance happens at 09.30 - check
Sundays are off if you have met your weekly goals - check
Is the "(we got to be kidding on this!!)" supposed to indicate that all the above is just you guys trying to be funny?
Just a suggestion from one of the much despised Indian "hackers" who can't think of a business plan without the IIM-A grads chipping in ;-).
When you are writing about how your process works, just say what you mean. Don't try to be funny. Writing humour calls for exceptional skill in writing. All this description manages to do is make you sound like lunatics. (Note : I said "sound like". I don't say that you ARE crazy).
Just say " we'll pay each founder 200 $ (or 8000 rupees) per month and give you non AC accomodation and an office with PC s and internet connectivity".
See? It's that easy.
And your whole "YC clone" theme is a bit of a non starter. YC works because as someone pointed out earlier on this blog, It is promoted by PG (and others) who "walked the talk". One of the reasons YC can't be cloned easily is that unless you have people of roughly equal caliber backing it up it makes no sense. People don't join YC's program for the money.
A mental experiment.
Think of what YC would sound like if it was promoted by a bunch of people with no credentials in either business or programming. Err... we are MBA students and we'll pay you 200 $ a month and make you go through hell (at the least you have to listen to our "humour" ;-) ) and give you ... ummm ... an internet connection. In return you will work your hearts out and try to create a killer startup.
Yeah that makes sense ;-)
Anyone who can hack can get (with ZERO experience) a 1500 $ / month job in Bangalore with no trouble at all. A couple of month's savings will give them more money than you guys can (and they can work whenever they feel like, with no security guards ;-) ). So what exactly is your value add? Pairing with an mba student?
This is not to discourage you from attempting to "incubate innovativeness" . Your deal just doesn't make any sense. But don't let me stop you. If you can get a world class product out of the door in three months with this deal structure , more power to you. We'll wait 90 days and see. (won't we? ;-) ).
Finally,
"give them the luxury of resting as and when they want"
resting when you are tired is not a "luxury" which you "give". It is a basic human right.