Power Up: New scheme aims to boost state-based IT startups

Tech

Ministry of Electronics and Information Technology’s latest scheme set to boost Karnataka’s IT economy.

Bangalore, February 27, 2018: The Electronic Systems Design and Manufacturing scheme (ESDM) is set to provide aid and incentives to Karnataka-based Information Technology startups.

Uma Rani, assistant general manager, Karnataka Biotechnology and Information Technology (KBITS) said that based on this scheme, around 10 start ups have been funded, but these companies will be aided only if they satisfy three critieria that have been mentioned by the governmentˉthe company has to be based in Karnataka and around 50 per cent of the staff must be local. Along with this, the company’s value addition towards the state must be 25 per cent of their profit.

The Ministry of Electronics and Information Technology floated scheme rewrite is part of the central government’s “Make in India” initiative. It aims to meet the country’s IT needs and serve the international market.

It is also in line with the National Policy on Electronics whose major goal is to set up 200 Electronic Manufacturing clusters across the country.

Rahul Kednurkar, founder of SenseGiz who is also a beneficiary of this scheme said that the government has provided a loan of half a million dollars which helped them create an expensive product. The product works as a Amazon web services and Google cloud platform.

In 2013, the scheme provided around Rs 5 crore in incentives and in the current fiscal year it has been increased to Rs 7 crore.

Leave a Reply

Your email address will not be published. Required fields are marked *