Odisha notifies Rs.100cr fund of funds with matching private investment

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Start-up ecosystem will take India to newer heights

A Rs.100 crore fund of funds has been notified which is expected to leverage another Rs.100 crore from private investors for the support of both the Central and State Governments work to help start-up ecosystem grow in Odisha, announced Satyabrata Sahu, the State’s Principal Secretary, MSME Department.

Addressing the ‘Policy Roundtable on Investment Opportunities in Start-ups in Odisha’, he said the state government is very keen to promote start-ups.

Separate hangars have been set aside solely for the start-ups participating in the MSME National Trade Fair that will commence in March on Biju Patnaik Jayanti. Most of the start-ups participating are women-led, Sahu told the roundtable on 17 Feb 2021.

Odisha offers sector specific opportunities for start-ups in electronics manufacturing, seafood processing, food processing, aluminium downstream and chemicals, petrochemicals, and plastics, according to Dr. Nitin B Jawale, MD, Industrial Promotion & Investment Corporation of Odisha Ltd (IPICOL).

“Odisha has been the number one state in India in terms of attracting investments from April-September 2019 as per CMIE. Odisha has dedicated authorities to facilitate skill development for industries. The state also offers cost-effective and is a hassle-free destination for industrial investments,” Dr. Jawale said.

Academic institutions play a big role in encouraging and nurturing start-ups, added Sanjeeb Mishra, OSD, Industries Dept, OIEPO, New Delhi. While moderating the discussions, he also sought feedback and suggestions of the participants on the draft start-up policy.

The financial incentives offered to start-ups includes a monthly allowance of Rs.20,000. The government also aims to provide product development and marketing assistance to the tune of Rs.15 lakhs, added Prasanta Biswal, Evangelist, Startup Odisha.

For incubators, Biswal said that the state comment offers a one-time capital grant of a maximum of RS.1 crore for setting up incubation facilities. The government also offer a matching grant up to Rs.5 crores for scaling up incubation facilities and performance capital grant of Rs.5 lakhs for successful incubate.

Non-financial incentives for start-ups include EMD exemptions and concession in performance security exception of prior experience and turnover count right area preference in public procurement self-certification under six labour laws online and off-line grievance redressal mechanism, he said.

The Start-up Odisha landscape has 906 recognized start-ups, among which are more than 300 are women-led start-ups, 17 recognized incubators and 15 nodal agencies. So far, 190 grants have been awarded to start-ups and incubators.

The Odisha Government has been playing a proactive role in fostering the start-up ecosystem in the state, according to said Padmaja Ruparel, Co-Chair FICCI Start Up Committee and Co-Founder Indian Angel Network.

“I thank the government for successfully breeding start-up companies. Odisha stands on top of innovation and entrepreneurship hub in the country. It is the third largest and the fastest growing start-up hub in India,” she said.

Further, elaborating on the flourishing start-up ecosystem in the country, Ruparel said that there are, approximately, 41,000 start-ups that have generated more than five lakh jobs. “Start-ups are the best job creating machine. We currently have 37 Unicorns and several ‘soonicorns’ and ‘decacorns’ and we hope to have 100 unicorns by 2025,” she said.

It is not about the valuation but the value that start-ups have brought that is important, she pointed out.

Post the pandemic, there has been a shift where traditionally established industries are now partnering with start-ups. The Start-up ecosystem is here to stay and will take India to newer heights,” Ruparel further added. #startups #investment #grants #banks #technologies /fiinews.com

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