Tamil Nadu Government’s Amma Venture Capital Fund is going to be made operational soon, in order to boost entrepreneurship in the state. This fund will have a corpus of USD 29.5 Mn (approx. Rs 200 Cr), and will work in conjunction with the functioning biotech incubation centre in Chennai.
According to sources, Ministry of Finance of Tamil Nadu has started the groundwork for the fund. With this initiative, selected startups will get USD 150K (approx Rs 1 Cr) equity funding. The fund will receive cash inflow from the central government. Funding could be a combination of equity and debt. About 25% of equity capital will be given in the form of subsidy. The other 75% capital requirement could be in the form of debt. This could be, loans at a concessional rate as announced in former Chief Minister J Jayalalithaa’s manifesto.
With all these efforts one thing is very clear that the Tamil Nadu Government putting in all efforts to promote entrepreneurship in the state. In September 2015, Uber announced that it signed a Memorandum of Understanding (MoU) with the Tamil Nadu Government to create thousands of work and entrepreneurship opportunities, foster technical innovation and support development in the state. This year in March 2016, Nasscom as well announced a partnership with Tamil Nadu Government to open its first warehouse in Chennai. Then later in September 2016, the state’s government decided to offer maximum support to startups, provided they follow the mandatory rules and regulations in order to create a fair economic system in the state.