TN Budget: Startup Hub to be set up in Chennai worth INR 75 Cr
- ByStartupStory | March 19, 2022
About INR 50 Cr allotted by Tamil Nadu Finance Minister Palanivel Thiyaga Rajan to the Emerging Sector Seed Fund in order to make equity investments in the state-based startups and also leverage capital from institutional investors.
An i-Tamil Nadu Technology hub at the cost of ₹54.61 Cr in Chennai would be set up by the state government and the central government would coordinate efforts to use technology in order to solve complex challenges in the state, said Rajan in the State Legislative Assembly.
As per a report by TNIE, Tamil Nadu Industrial Development Corporation (TIDCO) would establish an iconic State Startup Hub in Chennai at the cost of INR 75 Cr has also been announced by the minister.
Gobinath P, co-founder and chief operations officer of Modulus Housing, a Chennai-based construction tech startup, said in a statement that it is a challenge for startups to source funds, especially in order to design and build prototypes. It is crucial for startups to be nurtured in the right ecosystem, besides getting seed funds to build prototypes. He laid the decision of the state government in order to allocate INR 50 Cr to the Emerging Sector Seed Fund.
To support SC and ST entrepreneurs an announcement has also been made by the state finance minister. He said, “5% of all divisible procurement by government and governmental agencies shall be reserved for products manufactured by Tamil Nadu-based SC and ST entrepreneurs, in order to encourage entrepreneurs from SC and ST communities.”
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