Kerala Budget 2024 | What’s in it for startups?
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Thiruvananthapuram: Along with tourism and IT, the state government has identified the startup ecosystem as the flag-bearers of New Kerala, a favourite phrase of the Pinarayi Vijayan-led Left regime.
Finance Minister K N Balagopal on Monday allocated an amount of Rs 90.52 crore for various activities of the Kerala Startup Mission, the nodal agency for the development of the startup ecosystem in the state.
“Out of this, Rs 20 crore is allocated for the establishment of Technology Innovation Zone in Kalamassery KINFRA Hi-Tech Park and Rs 70.52 crore for youth entrepreneurship development programmes,” the minister said in his budget speech in the state assembly.
“Rs 46.10 crore has already been invested through the Fund of Funds system formulated by the state government to accelerate the startup investments in Kerala. The investment value has grown 3.9 times as per the current market value. Considering the potential of this type of investment, Rs 20 crore is earmarked in the budget as a Fund of Funds. Potential for share investments in startup enterprises will also be explored,” he said.
The minister said the Startup Mission was able to generate 50,000 job opportunities in the state and raise Rs 5,500 crore as investments to startups via venture capital funding. The number of startups already registered in the state has crossed the 5,000 mark.
Kerala Startup Mission will set up work pods so that persons who possess entrepreneurial ideas at the global level to come, stay and work in the scenic locations of Kerala, Balagopal announced in the budget.
He said startups in the sports sector will be promoted using the investment offers to the tune of Rs 5,000 crore which was received through the first-ever sports summit organised in the country.
An amount of Rs 31.62 crore is set apart as a state share towards the viability gap fund (VGF) of the innovation fund and ESCOT startup project established in the energy sector.
An amount of Rs 6 crore is earmarked for the “Innovation Acceleration Scheme” for the startup support initiatives. An amount of Rs 9 crore is provided as interest subvention for the Chief Minister’s Special Assistance scheme which provides financial assistance ranging from Rs 1 crore to Rs 5 crore with an interest rate of 5 per cent, to MSMEs/startups/enterprises of non-resident Keralites.
An amount of Rs 2 crore has been set aside for ‘Unnathi’, a scheme to promote entrepreneurship and startups among educated people in the Scheduled Tribes category. Assistance will be provided to entrepreneurs for research and development, marketing, new investments and other activities to foster ventures. Financial assistance of Rs 10 lakh will be given to startups at the initial stage.
An amount of Rs 846.50 crore has been distributed through around 2,800 loans under CMEDP, KAMS and Startup Schemes in 2023-24 with the assistance of the government. Through these schemes, jobs have been provided to 61,715 individuals either directly or indirectly, the minister said.
Kerala has bagged the ‘Best Performer’ award of 2022 based on the national startup ranking jointly constituted by the Department of Commerce and Startup India. Kerala was adjudged the ‘Top Performer’ in the last three years as well.