The Tamil Nadu govt is proposing to set up a Rs 250-crore fund for startups. The thrust areas include biotech, electronics, healthcare, etc.
The Tamil Nadu government on Saturday announced a new startup and innovation policy targeting to create around 5,000 startups, including 10 global high-growth firms, a minimum of one lakh high-skilled jobs in the startup ecosystem by 2023.
The Tamil Nadu government is proposing to set up a Rs 250-crore fund to fund startups. The fund will be managed by a professional financial agency such as SIDBI. It will be registered as an Alternative Investment Fund (AIF) under Sebi. The state will invest Rs 75 crore in the fund and the first tranche of Rs 25 crore will be allotted in 2019-2020.
Besides, a Tamil Nadu Startup Seed Grant Fund (TNSSGF) of Rs 50 crore, an allotment of Rs 5 crore in the first year will be created in partnership with financial institutions and universities for supporting early-stage financing requirements of startups in the form of grants to fill the gap in fund requirement for research and innovations, the policy said.
The TNSSGF would also provide funding for Idea-to-PoC (Proof of Concept) stages, which are pre-startup activities. This will be similar to the erstwhile Technopreneur Promotion Programme (TePP) grant provided by DSIR and would support prototyping and testing of innovative ideas of students/faculty/individuals.
Tamil Nadu Startup and innovaTN Mission (TANSIM) will manage this fund, which will be governed by a professional Scientific Startup Seed Fund Board.
The 2018-2023 policy aims to provide an enabling, innovative ecosystem in the state.
Implementation of the policy will enable the state to emerge as the “Knowledge Capital” and “Innovation Hub” of the country. It will also attract entrepreneurs and investors across the globe, said the policy.
The policy is presumed to nurture innovation, investment in R&D, infrastructure, knowledge creation, technological development and skilled manpower, resulting in high-growth entrepreneurial ventures across the spectrum of sectors, from agriculture, manufacturing, healthcare, education and logistics to the social sector, urban development, environment, fintech and ICT.
The thrust areas include transportation and logistics, electrical and electronics, healthcare and biotech, agriculture, renewable energy, climate change, fintech, textile, information technology (IT), internet of things (IoT), artificial intelligence (AI), machine learning (ML) and software as a service (SaaS).
The government also said that it would provide adequate incentives and resources to startups, facilitators, mentors and investors to promote the startup culture in the state and said it would reduce the existing regulatory and tax burden on startups in the field of labour, pollution and building norms and base these on self-certification.
The state is also planning to set up startup hubs in Chennai, Coimbatore, Salem-Erode, Madurai, Trichy-Thanjavur and Tirunelveli.
The government has identified five priority actions, including creating conducive ecosystem for encouraging entrepreneurship and innovations, ensuring adequate resources channelised to the startup ecosystem, enabling skill development and inclusive job creation, extending support to social entrepreneurship for a positive social impact and inclusion and establishing global accessibility, connections and partnerships.