Aiming to get its state among the top three in the race of competitive federalism pushed by the central government, Odisha government on Tuesday has approved the startup policy, which will be launched in the investor meeting in Bangalore later this week.
The development was first reported by Economic Times. Among other states that have already announced their state-specific policies are Telangana, Karnataka, Uttar Pradesh, Gujarat and Rajasthan.
Naveen Patnaik, the Chief Minister of Odisha, will also be travelling to Bengaluru on August 26 to attend the two-day investor conclave.
Odisha will also co-host a startup conclave with TiE Bhubaneshwar and TiE Global later this November. Rajib Sekhar Sahoo, president of TiE-Bhubaneswar, said, “The policy extends hand-holding to individual startups while supporting, with logistics and finances, institutional incubators,”
With Bhubaneshwar being the home to an IIT, NISER and XIMB, finding young entrepreneurs to groom will not be a problem, he added. As per the policy approved, universities will be offered financial help for incubation centres.
Aspiring to figure in the top three startup destinations in India by 2020, Odisha is aiming to set up 1,000 startups in the next five years, for which the state’s MSME Department will provide a Rs 25 crore seed fund.
The press note at the cabinet meeting state that the department will also participate in private state-specific funds.
Odisha’s mining sector has seen many billionaires over the years, particularly iron ore. However, Patnaik’s controversy-filled regime, especially the bauxite supply scam has left many investors sceptical.
The perception among one set of investors, primarily based on high-profile exits of the likes of steel giants ArcelorMittal and Posco from the state, is that Odisha remained a difficult state to do business in.
Sahoo clarified, “That is unfair and not based on ground realities. The issues pertained to one sector that suffered due to weaknesses in mining laws and global recession.”