BJP Promises INR 5,000 Cr Fund Of Funds For Karnataka Startups Ahead Of Polls

SUMMARY

“We will institute a fund of funds of INR 5,000 Cr to sunrise sector startups,” said the BJP’s manifesto

The ruling party, looking for a second successive term, has promised to transform Karnataka into an EV hub

BJP’s manifesto also promised the establishment of a new startup incubator, along with support for private incubators

Ahead of the state elections in Karnataka, the Bharatiya Janata Party (BJP) has made sure to woo the country’s largest startup ecosystem by promising a slew of favourable reforms, including a fund of funds (FoF) worth INR 5,000 Cr to invest in startups in ‘sunrise sectors’.

“We will institute a fund of funds of INR 5,000 Cr to sunrise sector startups,” said the manifesto, to invest in sectors such as green energy, healthtech, deeptech and electric vehicles, among others.

The state government further emphasised increasing the number of startups outside Bengaluru from 2,955 now to 10,000 by 2032, a vision revealed in an action plan prepared by the Department of Planning, Programme Monitoring and Statistics and FICCI to make Karnataka a $1 Tn economy by 2032.

To be sure, the BJP is seeking a second successive term in Karnataka. The ruling party has also laid down plans to transform Karnataka into an EV hub.

“We will transform Karnataka into a premier hub for Electric Vehicles, under ‘Mission Connect Karnataka’,” the manifesto read, adding that the party plans to achieve India’s net zero emissions goal by implementing several EV-friendly policies.

These policies include developing an EV city on the outskirts of Bengaluru, developing a Formula E circuit in the state, exempting registration fees and road tax for EVs, creating EV charging stations across the state and electrifying the existing BMTC bus fleet.

Further, the BJP’s manifesto promised to incentivise 1,000 EV startups in Karnataka.

The ruling party, which is also the ruling party in the Centre, has further promised a global innovation hub with a startup incubator and accelerator, based on Israel’s startup incubation approach.

Called the Yuva-Karunada – Digital 4.0, the incubator will provide 250 selected youth every year a seed capital of INR 50 Lakh each and an enabling policy environment.

Also, the ruling party promised to support private incubators and accelerators in establishing incubation centres in Bengaluru, under the YuvaGuru-Digital 4.0 scheme.

“We will provide a one-time capital grant of a maximum of 50% or INR 1 Cr (whichever is less) for Fixed Cost Investment (excluding land & building) along with providing incubator setups,” said the BJP via its manifesto.

Karnataka votes on May 10 and the elections results will be declared on May 13. In the only southern state where the BJP is in power, the incumbents would have to see off competition from the Indian National Congress and the Janata Dal (Secular).