The Karnataka Cabinet approved the Karnataka Start-up Policy, 2022-27, which proposes to establish 50 new-age innovation network (NAIN) centres – 35 in IT/electronics and 15 in bio-technology institutions of higher learning located outside Bengaluru Urban district. Karnataka formulated the first start-up policy in 2015.
Through the policy, the government has rolled out programmes with the objective of supporting start-ups in their business life cycle — right from providing funding at various stages (seed funding, venture capital funding, angel investor funding and sector-specific funding), incubation support, mentorship, co-working spaces and a dedicated Start-up Cell to facilitate the growth of start-ups.
Stimulating 25,000 start-ups
The policy was formulated with the aim of positioning Karnataka as the ‘Champion State’ for start-ups and aims to stimulate the growth of 25,000 start-ups, and further increasing the number of high-growth start-ups by 2027, sources in the government said.
The policy makes provisions for support of ₹5 lakh per student project, for a maximum of 10 projects in a year, for a period of three years, and annual financial support of up to ₹12 lakh towards operational expenditure per NAIN centre.
For strengthening the NAIN centres, the policy offers financial support of 25% of the total cost, up to a maximum of ₹45 lakh, for a period of three years, with remaining 75% contribution from college.
Karnataka has around 15,000-plus start-ups, and has been ranked as the Best Performer State in DPIIT’s States’ Startup Ranking 2021, and has been the top performer for two consecutive years (2018 and 2019) under the DPIIT’s States’ Startup Ranking.
A venture capital fund of ₹100 crore would be established under the policy to support emerging innovative and deep tech start-ups in artificial intelligence, machine learning, electric vehicles, med-tech, robotics, drones, and other such disruptive technologies across all sectors.
The policy envisages Beyond Bengaluru Cluster Seed Fund, dedicated to emerging technology clusters in Mysuru, Hubballi and Mangaluru, which would enable scaling up of start-ups.
25% venture capital for women
For promoting women entrepreneurs beyond Bengaluru, a venture capital fund would be set up by earmarking 25% of the ₹100 crore venture capital fund for start-ups by women.
It proposes to accelerate women start-ups through Elevate Women Acceleration and Incubation Programme by reserving 20% seats in government-supported incubators for women start-ups and by providing direct loan of up to ₹10 lakh through Karnataka State Women Development Corporation to start-ups by women.
The policy aims at identifying, supporting and nurturing start-ups from Kalyan Karnataka region; establishment of Rural Innovation Centre with a funding support of ₹15 crore at a government academic institution set up beyond Bengaluru, and subsidy of up to ₹1 lakh as internship fee per start-up for hiring maximum three interns from beyond Bengaluru for a period of six months, for about 50 start-ups annually.
The policy envisages 100% reimbursement of State GST for Beyond Bengaluru start-ups, incubated in the government-supported incubators and common internet file systems (CIFs) with a maximum annual turnover of ₹1 crore within the first three years of being incubated.
It would enable marketing cost reimbursements of 30% of the actual cost of ₹5 lakh, reimbursement of patents filing cost of ₹2 lakh per Indian patent, and up to ₹10 lakh per foreign patent awarded, 50% reimbursement of cost of quality certification fee with an overall ceiling of ₹6 lakh (with maximum of three industry standard quality certifications) for start-ups outside Bengaluru Urban district.
Published - December 22, 2022 05:38 pm IST
