Discuss the features of Karnataka start-up policy 2022-27. Examine its impact.
Karnataka to roll out new start up policy 2022-27, to create around 10K start-ups more in the state’s business ecosystem in the next five years.
Highlights:
Drafted by: Department of Electronics and IT/BT
Aim: positioning Karnataka as the ‘Champion State’ for start-ups and further increase the number of high-growth start-ups by 2027
Policy Vision: “To play a vital role in creating an enabling environment across the State for nurturing start-ups throughout their business lifecycle and make Karnataka a global innovation hub for start-ups”.
Under the scheme:
Launch of INR 100 Cr venture capital fund to back deeptech start-ups working in artificial intelligence, machine learning, electric vehicle, medtech, robotics and drones, among others.
Elevate Idea2PoC scheme à a one-time grant of Rs 50 lakh will be provided to start-ups
Establishment of a centre of excellence, earmarking INR 15 Cr for developing innovative products and solutions.
Each 50 start up every year will get a subsidy of up to Rs 1 lakh as internship fees to hire three interns from Beyond Bengaluru for a minimum of six months.
Support to start-ups of SC, ST, OBC and minorities.
New-age innovation networks (NAIN)
The policy seeking to set up 50 new-age innovation networks (NAIN) in technology institutions outside Bengaluru Urban district.
Each NAIN will get Rs 5 lakh per student project for three years and up to Rs 12 lakh towards operational expenditure every year.
Provide 25 per cent of the total cost, or up to Rs 45 lakh, for a period of three years.
Beyond Bengaluru
Incentives for startups to operate outside the crowded state capital.
A dedicated Beyond Bengaluru Cluster Seed Fund will enable scaling up of startups in emerging technology hubs of Mysuru, Hubballi and Mangaluru.
Start-ups from Kalyana Karnataka will get nurturing.
Rural Innovation Centres at government collegesoutside Bengaluru will get funding of up to Rs 15 crore.
Women in start up
Provides for an Rs 10-lakh direct loan for female entrepreneurs through the Karnataka State Women Development Corporation
25 per cent reservation in the Rs 100-crore venture capital fund.
Advantages of the policy
Encourages social entrepreneurship / assistive technology innovations and facilitate innovative technology solutions in the social governance sectors.
Addresses the existing social challenges in the Environmental, Social, and Governance (ESG) framework and helps to meet Sustainable Development Goals (SDGs).
Encourage facilitating funding avenues that lead to investment in start-ups by institutional investors and angel investors and also through Government funding.
