The State government will consider the formation of a venture capital fund to provide aid to startups as a joint initiative of the Kerala Bank, Kerala Finance Corporation, and Kerala State Industrial Development Corporation, Chief Minister Pinarayi Vijayan has said.
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He was speaking at an interaction organised by the Kerala Startup Mission with the founders of various start-up companies based in Kerala here on Monday to collect their opinions and suggestions on the steps that the government needed to take in the sector.
He said that the government would take steps to promote the products and services from startups. The delay in providing funds from the various departments to startups for services rendered would be addressed. Marketing facilities for start-up products would be ensured. A national-level launchpad to get more aid for startups would become a reality this year.
Mr. Vijayan said a system to ensure adequate consideration for startups in government projects would be considered. The departments would have permission to purchase mobile applications or software applications costing up to ₹20 lakh from startups, he said. Permission had also been accorded to departments, PSUs, local self government bodies, and boards to purchase products or services up to ₹1 crore from startups registered with the Startup Mission through limited tender.
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As of now, the rents for four months had been waived for startups, while the rent was waived partially for the three months after that. More than 50 startups had gained from the project for introducing startups to big corporates to find markets and financial support, he said.
“Several persons from the IT field have helped the government in various ways over the past few years. The development that we have witnessed in the IT sector and in the start-up ecosystem in the State itself is the result of such contributions and inputs from within the sector. The opinions and suggestions that have come to the government through discussions at various levels went a long way in achieving this,” he said.
Founders of around 50 start-up organisations were physically present at the interactive session, while 100 others joined through an online conference. The start-up representatives shared with the CM their suggestions for the improvement of the IT sector in the State. IT Secretary Mohammed Y. Safirulla and Startup Mission CEO Sasi Pilacheri Meethal were present.