CM Palaniswami unveils TN start-up policy; aiming 1 lakh jobs, 5,000 firms

Chief Minister K Palaniswami Saturday unveiled a start-up policy that aims to nurture 5,000 technology startups in Tamil Nadu and further strengthen infrastructure in identified thrust areas including 'Software as a Service'.

The mission aims at about 1,00,000 high skilled job creation, direct and indirect, in the startup ecosystem and will give priority to women-led startups and provide special care to differently-abled and transgenders.

Also Read: Microsoft's Project ReWeave helps handloom weavers to sell products online

As per the policy, State will set up Tamil Nadu Startup Fund of Rs 250 crore to be managed by a professional financial agency such as SIDBI and startups will get priority in allotment of plots in government-run industrial estates.

Also, a Tamil Nadu Startup Seed Grant Fund of Rs 50 crore with an allotment of Rs 5 crore in the first year is set to be created in partnership with financial institutions and universities for supporting early-stage financing requirements of startups in the form of grants.

The TNSSGF would also provide funding for Idea-to-PoC (Proof of Concept) stages which are pre-startup activities and also provide revolving fund up to a maximum of Rs 50 lakh to academic, institutional and private technology business.

Software as a Service, Information Technology, Internet of Things, Artificial Intelligence, Machine Learning, agriculture, renewable energy, climate change, fintech, textile, are among the identified thrust areas where support infrastructure will be established and existing mechanisms will be strengthened.

Also Read: India has potential to be $5 trillion economy in 7-8 years: Suresh Prabhu

To promote startups, the existing labour laws and technical norms will be simplified and self-certification is to be accepted "where there are no technical regulations need to be compiled such as EPFO, ESIC, minimum wages, bonus, gratuity."

The policy aims at providing adequate incentives and resources to startups, facilitators, mentors and investors to promote startup culture in the State.

"To create, support and nurture a vibrant startup ecosystem in Tamil Nadu resulting in innovation and entrepreneurship driven employment and economic growth, facilitating creation of at least 5,000 startups including 10 global high growth startups by 2023," is the policy mission according to the government.

Palaniswami unveiled the Tamil Nadu Startup and Innovation Policy (2018-2023) at the Secretariat and its vision is to make the state a global innovation hub and the most preferred destination for startups by 2023.

The policy complements the Tamil Nadu Vision 2023's -unveiled by late Chief Minister J Jayalalithaa-goal of attaining a GSDP growth at a sustained pace of 11 per cent per annum for the coming years.

Also Read: State Bank of India raises $1.25 billion from overseas market

As per the policy, 5000 technology startups and 10 global high growth startups developing innovative technology solution for high social impact in sectors like sanitation, food, clean energy, healthcare, and education will be encouraged.

Entrepreneurship Development and Innovation Institute, an autonomous government body will be the nodal agency to promote startups and a TN Startup and Innovation Council to be headed by the Chief Secretary will be set up to review and guide the startup mission.

Also Read: Czech Republic ready to step up Indo-Czech cooperation in defence, other sectors: PM Andrej Babis

Also Read: Trade deal could very well happen with China, says Donald Trump