The policy aims to create at least 1 lakh high-skilled jobs in the startup ecosystem, and develop 500 technology startups
Tamil Nadu government has released Startup and Innovation Policy 2018-23 to provide an ‘an enabling and innovative ecosystem’ for startups registered in the state.
It is also aiming to make Tamil Nadu a ‘Global Innovation Hub’ for startups by 2023, BusinessLine reported.
The government has set a 5-point action plan for implementing the policies which includes creating ecosystems for encouraging innovations, ensuring resources availability to Startup ecosystem, enabling skill development and job creation, supporting social entrepreneurship and establishing global accessibility and partnerships.
The Entrepreneurship Development Institute of India (EDII) will be the nodal agency to promote and facilitate startups, while Tamil Nadu Startups and InnovaTN Mission (TANSIM) will advocate and oversee policies and programmes for promoting startups.
Core objectives of the policy
The policy aims to create at least 1 lakh high-skilled jobs in the startup ecosystem, and develop 500 technology startups, of which at least 10 in the social impact sectors.
Under this policy, the state government also plans to provide infrastructure support in areas like Internet of Things (IOT), Artificial Intelligence (AI), Machine Learning (ML) and Software as a Service (SaaS).
Criteria to be recognized as a Startup in the state include:
- Registration under the TANSIM
- Date of incorporation below 7 years, and below 10 years for biotech and AI/ML startups
- Turnover of below Rs 25 crore
The state will also set up two funds to support startups – Tamil Nadu Startup Fund and Tamil Nadu Startup Seed Grant Fund (TNSSGF).
Tamil Nadu Startup Fund will be registered as an Alternative Investment Fund (AIF) managed by Small Industries Development Bank of India (SIDBI), for investment in startups and MSMEs. Of the total ₹250 crore, the government will invest ₹75 crore and the first portion of ₹25 crore be allotted in FY 2019-2020.
Tamil Nadu Startup Seed Grant Fund (TNSSGF): It will have a corpus of Rs 50 crore. Under this fund, the government is planning an allotment of ₹5 crore in the first year in partnership with financial institutions and universities for supporting early stage financing requirements of the startups in the form of grants.