Top technocrat and former DG of Software Technology Parks of India (STPI) Dr Omkar Rai is now the executive chairman of Startup Odisha. Hemant Kumar Rout speaks to him on his plans for the startup ecosystem in the state.
What are your plans for Startup Odisha?
Odisha is playing the role of an enabler, having set up 25 active incubators and supported 1,434 startups since 2016 of which 590 startups are led by women. We want to see Startup Odisha among the top-three startup ecosystems in the country. We are set to create at least 5,000 startups by 2025. A large number of incubators will be created to realise the dream. We will bring academia, technical and R&D institutions to the domain as we cannot fast-track the projects unless the students, faculty and researchers are brought under one roof.
We are also planning a super digital fabrication laboratory (fablab) in O-Hub at Patia. The mother fablab will be generating small fablabs in different parts of the state in due course. Mini fablabs can be set up at the college-level and we become a leader in the creation of maker culture and infrastructure inclusively. This is a very ambitious plan of the government to promote a culture of fabrication and maker across Odisha. We want to see Startup Odisha among the top-three startup ecosystems in the country.
What is the funding support the state is going to offer?
The state government has already introduced risk capital and initial funding and launched hall of fame, an investors’ connect programme. A Fund-of-Funds scheme - Odisha Startup Growth Fund (OSGF) has been promulgated. It has received very good responses from seven alternative investment fund (AIF) managers. We have already issued letters of intent.
The OSGF will be of around Rs 1,205 crore, including the state’s commitment of Rs 255 crore. A lot of money will be available in the ecosystem for the next five years. The AIF managers can fund more money. It actually depends on the hunger of the ecosystem.
At the O-Hub with four lakh sq ft areas, several centres of entrepreneurship and centres of excellence can be created and several ecosystem players can be housed for legal, mentoring, investment, due diligence and marketing support. We are going to brand O-Hub as one of the top startup hubs in the country.
An angel investing network in the state is your area of priority. How are you planning to set it up?
Since angel funding is more crucial in any startup ecosystem, we are going to every nook and cranny of the state to connect with high-network individuals (HNIs) like doctors, engineers, chartered accountants, independent professionals, businessmen so that they can understand the importance of angel funding. They can group together to create angel funds to ensure that every city of the state has capital and talent. It will help startups do entrepreneurship and ideation at their own places. This HNI initiative being implemented in the state is new in the country.
Many startups are finding it difficult to connect with the market. How can Startup Odisha help them out?
We have started organising demo days to connect the startups with the corporate, governments and other potential establishments. We are providing them with a grant of Rs 16 lakh for product development and marketing. Apart from the need-based assistance, one time capital grant up to Rs 1 crore is also provided to an approved incubator and Rs 5 lakh of performance grant to incubator per successful startups. Several other incentives and offers are being planned in the upcoming policy, which is being prepared. It will help create a vibrant startup ecosystem.
What are the growth areas?
There are 25 good incubators now operational in Odisha. We have a notable number of startups in food processing, agritech, health sciences, biotech, metallurgy, tourism, handicraft, art and culture. The portfolio of Startup Odisha is very diverse. The leader is of course the IT/ITes services with a share of around 23 per cent (pc), followed by 12 pc in food and beverages.
We are a leading state for having around 40 pc women led startups There are several startups that have been really solving our problems and helping in augmentation of livelihood at the grassroots level. Still there is a vast opportunity in the areas of biotech, agritech, health sciences, metallurgy, plastics and chemicals.
What prompted you to accept the Startup Odisha offer?
As DG STPI I had visited the state extensively and was very encouraged by the response I had at the grassroots level. The largest number of software technology parks were set up in the state during my tenure. I had understood that Odisha is transforming from farming to entrepreneurship and people are becoming partners in progress.
In 2018, when I requested Chief Minister Naveen Patnaik for his support to set up an innovation tower, he readily accepted it and sanctioned a 50 pc grant for the project. Odisha was the first state to come forward to set up a fablab though all states were approached then. I have been part of IIIT, Bhubaneswar and Virtual and Augmented Reality Centre of Excellence (VARCoE). The state is like my second home.