CHENNAI: With an aim to create a conducive start-up eco-system, Finance Minister Palanivel Thiyaga Rajan allotted Rs 50 crore to the Emerging Sector Seed Fund to make equity investments in Tamil Nadu-based start-ups and also leverage capital from institutional investors.
He also announced that Tamil Nadu Industrial Development Corporation (TIDCO) would establish an iconic State Startup Hub in Chennai at a cost of Rs 75 crore. The start -up sector is, understandably, upbeat as budding entrepreneurs will get a helping hand.
“It is a challenge for start-ups to source funds, especially to design and build prototypes. Besides getting seed fund to build prototypes, it is crucial for startups to be nurtured in the right ecosystem. I laud the decision of the government to allocate Rs 50 crore to the Emerging Sector Seed Fund,” said Gobinath P, co-founder and chief operations officer of Modulus Housing, a Chennai-based construction tech start-up.
The Tamil Nadu Startup and Innovation Mission (TANSIM) would set up regional Startup Hubs in Erode, Madurai and Tirunelveli. “Majority of the start-up-related activities are concentrated in Chennai, and regional hubs will provide necessary support, guidance and motivation to entrepreneurs in these regions. Along with financial assistance, leadership and direction are essential for growth of the startup sector,” said Thillai Rajan, IIT Madras professor and entrepreneur.
To support start-ups, government departments and public sector undertakings would be allowed to procure innovative products up to Rs 50 lakh. A corpus of Rs 30 crore will be provided to TANSIM to support start-ups by SC and STentrepreneurs.
District National Informatics Centre’s technical director, Arumuga Nainar said, “The proposed regional start up hub in Tirunelveli will help the existing initiatives taken in the district to encourage entrepreneurship. It will encourage more students to venturing into entrepreneurship.”
(With inputs from Sreemathi M @ Tirunelveli)