Entrepreneurship

New policy to encourage 25,000 startups, innovation outside Bengaluru

The Cabinet on Thursday approved the Karnataka Startup Policy 2022 to “incentivize” 25,000 startups with a series of incentives, including a Rs 100 crore venture capital fund to encourage innovation in disruptive technologies.

The new policy, valid till 2027, aims to make Karnataka a “champion state for startups”, a government note said.

In politics, there is a big focus on Beyond Bengaluru with incentives for startups to operate outside the crowded state capital.

Also Read: Incubated EV charger startup at IIT-Madras raises Rs 3.6 crore in seed funding

Karnataka, which introduced its first startup policy in 2015, has over 15,000 startups.

The Rs 100 crore venture capital fund will support “emerging innovative and deep technology startups in artificial intelligence, machine learning, electric vehicles, medical technology, robotics, drones and other such disruptive technologies across sectors”. In order to promote female entrepreneurship, 25% of this venture capital fund amount will be allocated to startups led by women.

The Beyond Bengaluru cluster’s dedicated seed fund will enable startups to scale in the emerging tech hubs of Mysuru, Hubballi and Mangaluru.

The policy offers 100 percent reimbursement of state GST to startups outside Bengaluru, incubated in government-backed incubators, with a maximum annual turnover of Rs 1 crore in the first three years of incubation.

The government will set up 50 New Age Incubation Network (NAIN) centers in technology colleges located outside Bengaluru. The government will fund up to 5 lakh rupees per student project for a maximum of 10 projects per year for three years.

To encourage industry-academia partnerships, the government will fund Rs 10 crore over five years to set up Technology Business Incubators (TBIs).

Also Read: 80 Startups in India Have Potential to IPO in Next 5 Years: Report

Also, each startup – 50 each year – will receive a subsidy of up to Rs 1 lakh as internship honorarium for hiring three interns from Beyond Bengaluru for at least six months.

Under the Elevate Idea2PoC scheme, a one-time grant of Rs 50 lakh will be provided to startups.

Private individuals will provide a one-time capital grant of up to Rs 50 lakh (excluding land and buildings) for setting up incubators outside Bengaluru.

Rural Innovation Centers in government colleges outside Bengaluru will receive funding of up to Rs 15 crore. Startups from Kalyan Karnataka will get nurturing.

The policy promises support to SC, ST, OBC and minority startups. Also, Center of Excellence for Assistive Technology (AT) will get Rs 15 crore to develop innovative products and solutions for the differently abled and senior citizens.

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