Kerala Budget 2015-16 encourages entrepreneurship in the State

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Trivandrum: The Kerala Budget for the year 2015-16 presented by the Finance Minister, Shri K M Mani in the Niyamasabha today encourages entrepreneurship in the State. The budget focuses on providing a good eco-system for start-ups, especially by students and women entrepreneurs.

The Government proposes to launch a Comprehensive Mission on Employment Generation (MEGA) to provide holistic direction and oversight to self employment programmes implemented with the assistance of various governmental agencies and Banks. The mission will support services including skill development, business planning, financial linkage, technology and infrastructure support to potential entrepreneurs. It is also envisaged to set up business incubators in all districts and technology incubators in all sectors. 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.

Rs.10 crore will be allotted as initial expenditure for setting up an Incubation Infrastructure Development Fund to meet gap financing needed for infrastructure development for facilitating for incubators and host institutions.

Rs. 11 crore to provide Rs. 1 crore each to set up Incubation Support Centres in the Universities in the State.

Rs. 12 crore for Performance Linked Support Scheme for Startups. The scheme will support 1,000 startups with performance incentive of Rs 10,000 per startup per month for the first two years.

Rs. 40 crore for the Entrepreneurship Support Scheme to provide extensive support to micro, small and medium enterprises. An amount of Rs.6 crore has been provided as seed fund to assist young entrepreneurs.

Rs. 5 crore for providing interest subsidy for five years for loans to provide support to any student entrepreneur who is able to secure a patent.

1,300 entrepreneurs assisted by Kerala Financial Corporation under the Kerala State Entrepreneurship Development Scheme. Financial limit of loan offered to technocrats raised from Rs. 10 to Rs. 15 lakh and for others from Rs.4 lakh to Rs. 7 lakh.

Rs.10 crore for a new interest subvention scheme for woman entrepreneurs which will cover industrial units run by women employing not less than 50% of women in its work force, and will bear the entire interest on for loans availed from any scheduled bank up to a maximum of Rs.5 lakh per annum for three years.

Rs.50 Lakh is earmarked for the establishment of business incubation centers to coordinate entrepreneur promotion activities for creating more employment opportunities and starting new enterprises.

Rs.12 crore is allocated for funding business/technology incubators such as Seed fund / Angel Funding / Venture Capital approved by Government of India departments.

Rs.5 crore is provided for entrepreneurship promotion jointly with institutions like TiE, NASSCOM, CII, etc.

Kerala IT News

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