College graduates and professionals who wish to start a new business using emerging technology can now avail a stipend from the government of Karnataka for a period of 12 months. In a bid to further develop the state as a hub of emerging technologies, the government of Karnataka has released the Rajiv Gandhi Entrepreneurship Encouragement Scheme (RGEES) through its Startup Cell, and Karnataka Biotechnology and Information Technology Services (KBITS).
RGEES in Brief
· Name of the Scheme: Rajiv Gandhi Entrepreneurship Encouragement Scheme
· Nodal Agencies: Startup Cell, Karnataka Biotechnology and Information Technology Services (KBITS)
· Stipend per month: Rs 10,000 to Rs 30,000
· Eligibility: Fresh college graduates or experienced professionals
The programme is meant for potential innovative entrepreneurs who are either students passing out of colleges, or experienced professionals who are eager to start on their own.
“The idea is to encourage graduating students or professionals with experience to pursue entrepreneurship related to a technology business idea by providing initial fellowship support for risk mitigation. We want to make entrepreneurship in the field of technology a more lucrative and attractive career option. The programme encourages enterprising individuals to venture out and pursue daring entrepreneurial ideas, in due course enhancing the quantity and quality of start-ups. This will further foster innovation in Karnataka,” says Priyank Kharge, minister of IT, BT and ST, Government of Karnataka.
Funds and processing
The implementation of the scheme will be done by Startup Cell of Karnataka. One founder of the startup will be given an amount ranging from Rs 10,000 to Rs 30,000 per month for a period of 12 months. The amount will be transferred directly to the recipient's account on a month-on-month basis.
The KBITS shall announce annual calls for applications, after which the department will shortlist based on the eligibility criteria. The shortlisted startups will have to present in front of the Startup Cell Karnataka who will then make the final call on who should get the funds.
What the government expects out of the scheme?
While there would be funds, it is not always a clear indication of a successful profitable startup. Hence, the government is expecting or aiming at converting at least 30 percent of the support recipient’s ideas into start-up business products. The government would also be looking at elvating at least 10 percent of such supported business products to raise funds or further investment for their company within 12 months of programme support.