Startup and Innovation policy of Tamil Nadu

The government of Tamil Nadu has released Startup and Innovation policy 2018-2023 with a mission of providing an enabling and innovative ecosystem for startups registered in the State and to make Tamil Nadu a ‘Global Innovation hub for startups’ by 2023.

Objectives of the Policy

The core objectives of the Startup and Innovation policy 2018-2023 are:

• Creation of at least 5000 technology startups of which at least 10 global high growth startups in social impact sectors.
• Infrastructure support to strengthen existing mechanism in areas like the Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML) and Software as a Service (SAAS)

Components of the Policy

The important components of the Startup and Innovation policy 2018-2023 are:

• The policy aims to collaborate with educational institutions to promote entrepreneurial spirit, reduce existing regulatory and tax burden on startups in the field of labour, pollution and building norms.
• The policy aims to partner with reputed investors across the globe to bring investment to the Tamil Nadu startups.
• The policy envisages nurturing aspiring entity or individuals (defined as ‘Start Steps’) who develops a potentially scalable business model that can generate wealth and employment.
• Entrepreneurship Development Institute of India (EDII) will act as a nodal agency to promote and facilitate startups.
• Tamil Nadu Startup and InnovaTN Mission (TANSIM) headed by a full-time officer will advocate and oversee policies and programmes for promoting startups.
• Tamil Nadu Startup Seed Grant Fund (TNSSGF) of Rs 50 crore with an allotment of Rs 5 crore in the first year in partnership with financial institutions and universities for supporting early-stage financing requirements of the startups in the form of grants to fill the gap in fund requirement for research & innovations.

Implementation of the Policy

The government of Tamil Nadu has set a 5-point action plan for implementing the policies. It includes:

• Creating ecosystems for encouraging innovations.
• Ensuring resources availability to Startup ecosystem.
• Enabling skill development and job creation.
• Supporting social entrepreneurship.
• Establishing global accessibility and partnerships.

Definition of the Start-up

The policy lists the following criterions to be recognised as the start-up in Tamil Nadu:

• Registration under Tamil Nadu Startup and InnovaTN Mission (TANSIM).
• Date of incorporation less than 7 years (less than 10 years in case of biotechnology, AI and ML startups).
• Registration and turnover less than Rs 25 crore in any of the financial years.

The policy aims for a minimum of 1,00,000 high skilled job creation, direct and indirect, in the Startup Ecosystem.

Month: Current Affairs - January, 2019