Start-ups to get nod in 10 days under TN govt’s new policy

The detailed policy note drafted by the Micro, Small and Medium Enterprises (MSME) Department, also issued validity period of five years for the policy.

The Tamil Nadu Start-up Seed Grant Fund (TNSSGF) (Rs 50 crore), will have an initial investment of Rs 5 crore for the first year. To support the corpus, institutions and universities will be roped in for early stage financial  requirement of IT-enabled start-ups, the policy note said.

According to officials, a company has been registered in the State under the Tamil Nadu Start-up Innova TN Mission (TANSIM) and this body will govern the start-ups and attract further investments through NRIs, angel investors, ventures and private equity investors. Land will be given by Small Industries Development Corporation on concessional rates and lease. The project aims to create a minimum of 1,00,000 high skilled jobs, direct and indirect catering to the start-up ecosystem, sources said.

“TANSIM policy 2018-2023 aims to provide a ‘knowledge capital’ and ‘innovation Hub’. Climate change, Fintech, Textile, IT,  Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML) and Software as a Service (SaaS) are areas of focus in this policy,” the note stated. Brand start-up hubs in places like Chennai, Coimbatore, Salem-Erode, Madurai, Tiruchy-Thanjavur, Tirunelveli will receive a boost, the document read.

In case of biotechnology, artificial intelligence and machine learning sectors, the period shall be up to 10 years from the date of its registration. The policy will encourage start-ups from Tamil Nadu to follow Government of India norms so that central benefits are availed of, the policy explained.

TANSIM shall identify and empanel private internet protocol (IP) centres to either partner or engage with networks, associations, co-working spaces to provide IPR guidance to such projects. 

Existing IP support centres will also be strengthened to serve as Patent Information Centres (PICs) and Property Facilitation Centres (IPFCs), the policy note explained. Demergers, franchises, subsidiaries will not be covered by the policy and it will be reviewed every five years.