Kerala, Goa And Haryana Bets Big On Start-ups With Funds, Policies | SupportBiz
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Kerala, Goa And Haryana Bets Big On Start-ups With Funds, Policies

 
Tags: startup
Mumbai: Three Indian states Goa, Kerala and Haryana has come up with various policy notes and have plans to allot special funds focussing on the start-ups, joining hands with the center.

The Haryana Cabinet has approved a start-up policy to align the state with Centre’s ambitious Startup India programme and develop the region as an innovation hub on the back of new-age entrepreneurs, according an official press release. The policy envisions attracting investments to the tune of Rs 1,500 crore in the incubation and start-up ecosystem in Haryana, facilitating venture capital funding of a minimum of Rs 200 crore and encouraging, facilitating and incubating at least 500 start-ups, the release states.

The policy further proposes to establish a start-up hub in Gurugram and at least 22 technology, business incubators or accelerators, one in each district, covering the various sector as mapped with the resource strength of the region. It is proposed to develop incubation space of one million square feet across the state. Under the approved draft policy, a start-up (as per the definition of DIPP) will be eligible if the company or entity is registered in Haryana under the Haryana Shops and Commercial Establishment Act, 1958 and employs at least 50 per cent of its total qualified workforce in the state itself.

 

Make Goa Start-up Destination:

 

The government of Goa has also released a start-up policy at the state’s cabinet meeting chaired by Chief Minister Manohar Parrikar. The start-up policy aims to make Goa a top start-up destination by 2025. “We want to feature in 25 top start-up destination in Asia by 2025. Goans can avail benefits of the policy and launch start-ups at different locations across Goa,” said IT Minister Rohan Khaunte. The government has taken this initiative in order to create employment and promote innovation among the start-ups in Goa. The objective of the policy is to provide assistance to the Goan entrepreneurs and local start-ups to create at least 100 successful early stage ventures in the next five years, targeting generation of employment for at least 5,000 Goans.

The policy also stated that a maximum of three projects which show immense promise and potential will be eligible for grant of 30 per cent of a loan interest amount, for the purpose of repayment of the interest component of a loan availed, subject to a maximum amount of Rs 5 lakh per annum, for an initial period of two years. Other start-ups can avail an interest repayment grant of 10 per cent of the interest amount of a loan availed, upto Rs 2 lakh per year, for a period of two years.

 

Special Funds For Kerala start-ups:

 

In a bid to enable and empower the till now lagging start-up ecosystem of Kerala, the state government is contemplating over creating a fund-of-funds and invite investors to boost young entrepreneurs of the state, according to a government official. In this regard, the organisation aims to create a corpus of Rs 500 crore for Kerala-based start-ups over the next three years, as per media reports. “Kerala doesn’t have large angel funds or established angel networks, so we are attracting early stage funds to invest in start-ups in the state,” said Kerala Startup Mission (KSUM) Chief Executive Officer (CEO) Saji Gopinath.

“While the government doesn’t have the expertise to invest in start-ups, it is a good idea to invest through Alternative Investment Fund (AIF) category into early-stage funds,” he added.
Venture capital funds supported by KSUM will have to invest in Kerala-based start-ups, double the proportion of the funds committed by the state government. KSUM is home to 750 plus start-ups.