Revised Kerala Budget 2016-17 gives impetus to IT industry & Startups

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Trivandrum: The revised Budget for the financial year 2016-17 presented by the Finance Minister, Dr. T M Thomas Isaac in the Kerala Legislative Assembly, gives an impetus to the IT industry and Start-ups in the State.

In order to fulfil the promise made in the LDF election manifesto for expansion of IT parks to reach one crore sq. ft. built-up area, the budget has set aside Rs, 1,325 crores including an expenditure of Rs. 250 crores in this fiscal.

In his first Budget speech of the present LDF Government, the Minister said that 128 companies are waiting for about 5 lakh sq. ft. built-up space in Technopark, Trivandrum. Of the Rs. 1,325 crores earmarked for IT space, the budget allocates Rs. 750 crores for a 8 lakh sq. ft. building at Technopark, Rs. 225 crores for a 3.4 lakh sq. ft. building at the Technology Innovation Zone (TIZ) at Kalamassery, Kochi; Rs. 100 crores for the first two lakh sq. ft. building at the proposed Technocity at Pallipuram, on the outskirts of Thiruvananthapuram and Rs. 100 crores for building Cyberpark, Kozhikode.

The budget has also allocated Rs. 482 crores for the IT sector including Rs. 76 crores for Technopark, Rs. 61 crores for Infopark, Kochi for the development of its second phase and Rs. 25 crores for Cyberpark. Smaller IT parks being developed at Kozhikode, Kannur, Kasaragod and Koratty would get Rs. 58 crores.

The government also plans to promote Start-up ventures at TIZ and the budget has allocated Rs. 60 crores for that. For novel ideas, the budget has allocated Rs. 2 lakh each and those selected proposals among them will get Rs. 1 crore loan without guarantee. A scheme will be initiated this year to support 1,500 startups in the next five years. Rs. 50 crores will be made available through the Kerala Financial Corporation (KFC) to support start-ups.

The government has also earmarked Rs. 150 crores for linking Engineering College with IT Parks through a tele-presence network.

Kerala IT News

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