Karnataka Polls: After BJP, Congress Woos Startups With Subsidies & Sops

Ahead of the Assembly elections in Karnataka, the Indian National Congress released its manifesto on Tuesday (May 2) which promised a number of steps to promote startups in the state.

Karnataka will vote on May 10, while the election results will be declared on May 13. The campaign fever has reached its peak, with top leaders of all parties touring the state to woo voters. On Monday, the Bharatiya Janata Party (BJP), which is currently in power in the state, also released its manifesto with big promises for startups. Besides BJP and Congress, the Janata Dal (Secular) is another major contender in the elections.

Congress Bets Big On Startups

Congress promised a fund of INR 10 Cr for each constituency in the state to promote startups. Besides, the party said it would offer subsidies of up to INR 25 Lakh to startups and a soft loan of INR 1 Cr at an interest rate of 6%.

The manifesto also pledged to support 4,000 women entrepreneurs every year.

Congress said it would set up tech parks in Mysuru, Mangalore and Hubbali-Dharwad to create 1 lakh employment opportunities. Besides, it pledged a support of INR 100 Cr for businesses solving societal issues in the state such as housing, flooding, waste management and zero carbon transport.

It also promised to develop world-class fintech innovation hubs and incubation parks in Devanahalli and Davangere.

Under the ‘Krishni Unnathi Nidhi’ scheme, Congress said it would set up an INR 500 Cr seed fund to encourage startups and innovation in agricultural and allied sectors.

In order to tackle the rising cyber crimes, the party said it would set up a cyber police station in each district of the state. Besides, it would also set up an INR 200 Cr seed fund for creating the necessary infrastructure to tackle cyber crimes.

The manifesto also laid down plans to increase EV adoption in the state. Congress said it would make it mandatory to have EV charging points in all apartments if it comes to power. Besides, it would also install EV charging stations at all important junctions and highways. The party said it would offer 50% exemption in SGST and other subsidies to establish EV charging infrastructure and battery manufacturing units.

It is important to note that the BJP, in its manifesto, also promised a fund of funds (FoF) worth INR 5,000 Cr for startups in ‘sunrise sectors’. It also pledged to make Karnataka an EV hub. “We will transform Karnataka into a premier hub for electric vehicles, under ‘Mission Connect Karnataka’,” its manifesto said.

Gig Economy In Focus

Considering the fast-rising gig economy in the country, Congress promised to set up a ‘Gig Workers’ Welfare Board’ for Karnataka with a seed money allotment of INR 3,000 Cr. The manifesto said that if Congress came to power, the government would come out with a new transparent policy to out-source employment for gig workers.

“This is to mandate a minimum hourly wage for all gig and organised workers in domestic and personal care, logistics, food delivery, e-pharmacy, transportation and other relevant sectors,” the manifesto said.

As per government think tank NITI Aayog, around 7.7 Mn workers were engaged in the gig economy in 2020-21 and this number is expected to soar to 23.5 Mn by 2029-30. However, the rise in the number of gig workers has also been accompanied by protests by them to demand higher wages and better working conditions.

Recently, driver partners of Zomato’s quick-commerce platform Blinkit in the Delhi NCR region went on a strike after the company rolled out a new payment structure. Earlier, Swigyy also saw protests by its delivery executives in Kochi, while Dunzo riders in Bengaluru protested over a slew of issues, including changes in login timings and in incentive structure, last year.

As per a report by Fairwork, Indian startups such as Ola, Uber, and Dunzo were among the worst performers when it came to the working conditions of gig workers.