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Rs 10 cr disbursed to boost startups: Karnataka ITMinister

Press Trust of India  |  Bengaluru 

The Startup Cell has witnessed nearly 1,400 registrations in the last two months and close to Rs eight to Rs ten crore has been disbursed under the "Innovate Karnataka" initiative to provide assistance to startups, state IT Minister Priyank Kharge said today.

"The actual take off (of Innovate initiative) has happened in the last one month. If you see, close to Rs 8 to Rs 10 crore are already out in the market for giving a boost to the startup ecosystem in Karnataka," he told PTI.


Kharge also said that after the introduction of Booster kit on July 25, the Startup Cell has witnessed 1,370 registrations, compared to just 40 registrations that it received in the last two-and-a-half years.

He said the cell has funded an aerospace startup close to Rs 1.5 crore to Rs 1.7 crore and also funded startups connected to IT innovations.

"We have funded an aerospace startup. We have provided close to Rs 1.5 to Rs 1.7 crore to them. We have also funded some startups connected with IT innovations," he said.

Kharge said the government intends to speed up the disbursement process prudently as it aspires to break into thetop 10 startup destinations in the world. "I want to expedite the disbursement process. Our idea is to break into world's top 10 startup destinations. Currently, we are placed somewhere around 14th or 15th. I want my state to be in Top 10 list," he said.

Replying to a query on the last Bangalore ITE.Biz event, Kharge said he would be visiting Paris in next two days to attract investments, especially in the aerospace sector.

The Minister said he was looking at long-term partnerships with French companies by leveraging Bengaluru's tag of being a science city, startup, IT and BT hub and innovation and R&D hub.

"I have personally written to over 800 people now including Fortune 500 companies in this regard," he added.

To give a boost to startups, the government had committed to invest Rs 400 crore through its "Innovative Karnataka" initiative and mobilise Rs 2,000 crore by 2020, he said. Asked about the means of mobilising the funds, he said it would done by the government and private partners likebanks.

"The policy itself has earmarked funds for it. We are also looking at private partners like banks. SIDBI, ICICI, HDFC, HUDCO - they are all our partners," he said.

The government, however, does not want to be participate in fund management, the job has been assigned to Campco,Kharge said adding "We have a set of professionals to manage funds." The Minister said the government does not want to partner with any venture capitalist to raise funds as they would come withcapitalistic idea.

"It becomes a little tricky because venture capitalist will come with a capitalist idea, but the government could use their expertise in policy-making processes," he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, September 15 2016. 18:07 IST
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