Karnataka Chief Minister Siddaramaiah presenting the state budget for 2024-25 on Friday announced financial support for MSMEs to take the IPO route for capital raising. According to the budget, the state government will provide financial assistance up to 50 per cent of the cost (to IPO) subject to a maximum of Rs 25 lakh to small and medium industries.
As of Friday, 13.3 lakh MSMEs from Karnataka were registered on the government’s Udyam portal, of which 12.9 lakh were micro enterprises, 37,496 were small enterprises and 3,288 were medium-sized businesses.
Siddaramaiah also announced a 6 per cent interest subsidy for entrepreneurs seeking loans up to Rs 10 crore from KSFC for setting up new micro and small industries and upgradation of their existing units, according to the budget document.
KSFC or Karnataka State Financial Corporation is a state-level financial institution catering to the long-term and short-term financial needs of the state’s MSMEs including expansion, modernization and diversification of businesses.
Further, Siddaramaiah also announced that the industrial estates existing in various districts will be upgraded through the Karnataka State Small Industries Development Corporation (KSSIDC) in collaboration with the central government at an estimated cost of Rs 39 crore.
Moreover, the state government will partner with TReDS service providers for government departments, public-sector enterprises and MSMEs and “prevent liquidity crunch faced by MSMEs due to delayed payments,” he said.
Siddaramaiah also announced that the state government will launch three new programs to maintain Karnataka’s top position in the startup ecosystem: first, an early-stage funding program called the Rajiv Gandhi Entrepreneurship Program to nurture ideas and innovations and promote innovative startups by students or entrepreneurs.
Second, a new initiative to support early-stage women entrepreneurs with a sector-wise and targeted approach and third, five acres of land for bio-incubator and innovation hub C-Camp (Centre for Cellular and Molecular Platforms) agri innovation park to promote agri startups.
Other key announcements for small businesses and startups in the budget by Siddaramaiah:
Dual System of Training (DST) will be extended in all ITIs of the state in a phased manner in collaboration with local industries and enterprises to promote entrepreneurship.
In collaboration with the Coffee Board, 1 lakh women members of SHGs (self-help groups) will be trained as coffee entrepreneurs. Besides, 2,500 Coffee Kiosks managed exclusively by SHG women will be set up at a cost of Rs 25 crore.
To further expand the state’s footprint in the technology sector, a Centre of Excellence (COE) in Fintech, Spacetech and Automotive Tech at a cost of Rs 10 crore will be set up over a period of 5 years in collaboration with entrepreneurs and educational institutions.