Kerala Budget 2015-16 A Booster to Entrepreneurship In The State
There’s additional good news for the Startup Community in the state. The recently released Kerala State Budget 2015-16 is reason for celebrations galore for the young entrepreneurial community. A total allotment of more than Rs 150 Crore has been made towards the development of entrepreneurship among the youth, women and even the reserved categories.
A lot of the focus for the present budget has been on infrastructure development, especially for incubation centers. This itself showcases how widespread the plans are for developing the essence of entrepreneurship across the state. The recently presented Kerala Budget 2015-16, amidst all the drama, still managed to prove a good budget for the startup community in the state.
The main highlights are as -
1. Government proposes to launch Comprehensive Mission on Employment Generation (MEGA) to provide holistic direction and oversight to self employment programmes. The scheme is provisioned to constitute state specific Credit Guarantee fund, Seed Fund, Angel fund and Incubation Infrastructure Challenge Fund. An amount of Rs. 25 crore is provided for this mission.
2. An Incubation Infrastructure Development Fund will be constituted to meet gap financing needed for infrastructure development for facilitating for incubators and host institutions. Rs. 10 Crore set aside as initial investment.
3. Rs. 11 crore to provide Rs. 1 crore each to set up Incubation Support Centers in the Universities in the State.
4. Performance Linked Support Scheme for Startups - support 1000 startups with performance incentive of Rs 10,000 per startup per month for the first two years. Rs. 12 Crore set aside for this.
5. Rs. 40 crore for the Entrepreneurship Support Scheme to provide extensive support to micro, small and medium enterprises.
6. Rs. 50 Crore for self-employment initiatives for youth, women, SC/ST beneficiaries, fishermen etc.
7. Educational assistance of up to Rs. 3 lakh per year, for any student entrepreneur able to secure a patent, for continuing his or her postgraduate studies or research for a period of three years. Rs. 5 Crore allotted for this.
8. Raising the financial limit of loan offered to technocrats from Rs. 10 to Rs. 15 lakh and for others from Rs.4 lakh to Rs. 7 lakh, under the Kerala State Entrepreneurship Development Scheme.
9. For any industrial units run by women employing not less than 50% of women in its work force, the new Interest Subvention Scheme for Woman Entrepreneurs, will bear the entire interest for loans availed from any scheduled bank up to a maximum of Rs.5 lakh per annum for three years. Rs. 10 Crore set aside for this.
Responding to the budget, Kris Gopalakrishnan, Chief Mentor of Startup Village responded - ”This will undoubtedly encourage more and more young people to start new ventures at home rather than finding well-paid jobs outside the state“.
Adding to the 22 Crores setup as KSIDC Angel Fund in last year’s YES Kerala, the present budget is sure to boost the morale of the young community in the state. As for now, the future looks bright for the Startup sector. They are bound to make a bang!