The PSG – Science and Technology Entrepreneurial Park (PSG-STEP) has sanctioned Rs. 71 lakh to four companies under the Seed Fund Support Scheme.
General Manager of PSG-STEP K. Suresh Kumar told The Hindu that the STEP had Rs. 3 crore corpus from the grant it received from Technology Development Board and National Science and Technology Entrepreneurs Development Board. The corpus could be disbursed as grant, loan or equity to technology start ups. The STEP decided to use it as revolving fund by providing loan without collateral, at 5 per cent interest, and five year repayment period to select companies.
The first phase of seed fund was disbursed in 2009-2010 to two companies (Rs. 30 lakh), the second phase was in 2010-2011 to two companies (Rs. 36 lakh). This year, 50 per cent of Rs. 71 lakh was given to four companies at a function recently.
Now, the STEP was receiving applications for the next round of funding. The companies should have unique technology ideas, cater to niche markets, and be less than two years old.
Apart from funds, the STEP also provided incubation support and mentoring the start ups. So far, the beneficiary companies had been Coimbatore-based.
The companies that received the funding this year were Ranga Enterprises, Joule Foods (makes millet-based cookies), Vestige Technologies India (Vestige Technologies Asset Integrator for oil and gas operators), and Infinit Solutions, he said.
