The piece today focuses on State that came into being two years ago! It was off course part of Andra State previously. The breadth of innovation is exemplary. The State is driven by a Startup ethos. In Sri Lanka we had such visions in the post 2015 era. If every Province were to take off in similar manner what could we not achieve. However, what have we not done, to destroy it brick by brick.
The appointment of a Chief Innovation Officer for overseeing startup activities, formation of an “Innovation Policy” and the establishment of T-Hub have propelled the State to be heralded as the “Leader” in the Union Ministry of Commerce and Industry’s State Startup ranking 2018. However, at the same time, it was below the national average in areas such as ‘easing public procurement’, ‘funding support - angel and venture funding’ and ‘seed funding support’, the report said. On easing public procurement, the report said, “Government of Telangana has removed criteria such ‘prior experience’, ‘prior turnover’, and submission of EMD’ to Startups that have technology-based solution. However, these criteria restrict the benefit to only to those Startups that have technology-based solution.”
The report highlighted, T-Hub, the PPP between the State Government, three academic institutions — IIIT Hyderabad, ISB and NALSAR — and key private sectors, and termed it as “the fastest growing incubator in India”. The state aims to set aside INR 2000 Cr for its startup fund called “T-Fund” to help deserving entrepreneurs financially.
Hyderabad, a historical melting pot situated in the centre of multiple trade routes, and host to multiple kingdoms and cultures over the centuries, has evolved in to a very nuanced, highly sophisticated commercial centre. Large enterprises across sectors such as IT, Pharma, infrastructure etc. have been nurtured from within and grown out of Hyderabad.
It is probably fair to say that the original IT boom was very much centred around Hyderabad, with large companies such as Micros oft, Oracle, TCS and their ilk choosing to base large offices here, attracted by the combination of a skilled work force, great infrastructure and moderate climate all year round.
In addition, there is a cluster of world-class research centres in the City, such as Central Pharma Research Institute, the Defence Research Development Organization laboratories and numerous world class pharmaceutical labs.
Funding models and capital
A fund-of-funds will be set up, drawing upon lessons from global leaders such as Singapore, in which the Government will actively invest with matching capital in select Venture Capital investors (VCs) with significant potential.
Telangana Government will also expedite the launch of its early-stage investing vehicle T-Fund (Telangana Innovation Fund), which is being launched in concert with leading global investors,
T-SEED fund to fund startups in the seed stage
This fund with an initial size of INR 250 Crore is aimed at encouraging innovators who need early stage funding to work on their research discoveries, college project ideas etc. T-Seed Fund aims to ease the costs incurred at an early stage such as company registration, patent filing, quality certifications, travel etc.
A ‘Phoenix fund’ will also be launched in collaboration with the private sector. The aim of the Phoenix fund will be to identify and attract entrepreneurs who have attempted at least one venture previously (and have met with some degree of success and derived learnt key learnings).
Human Capital
Linking entrepreneurship and education - The policy shall encourage budding school and college entrepreneurs by providing them with highly beneficial and attractive options and programs such as entrepreneur in residence, credit allotment for innovative ideas and startups, etc.
Role of Academia
Given the critical role University research and academics have played in fostering innovation in young minds, the Government has set the following goals in this sector-
* Shift from a marks-driven to an innovation powered educational system
* Establish an entrepreneur friendly academic apparatus
* Create a barrier free environment for free flow of ideas
Students, innovators and entrepreneurs
a. Student entrepreneur in residence - Universities shall be encouraged to introduce the concept of student entrepreneur in residence. Outstanding students who wish to pursue entrepreneurship can take a break of one year, after the first year, to pursue entrepreneurship full time
b. IT and entrepreneurship at College level
i. All Universities in Telangana shall be encouraged to grant 5% grace marks and 20% attendance every semester for student Startup teams. Guidelines for the same shall be framed in consultation with the institutions.
ii. Students shall be encouraged to undertake their Industrial Seminar, Project Seminar and Industrial Visit at Technology Business Incubators where the additional facilities are being setup.
iii. Student’s entrepreneurs working on a Startup idea from first year of college shall be encouraged to convert their Startup project as their final year project towards degree completion. Mentors assigned by Incubators may be allowed to conduct Viva Voce. Project reports certified by the Incubators may be sent back to the respective colleges for forwarding to university
c. International Startup Culture and Exchange Programme – An international Startup programme would be setup to send the most brilliant startups, college and school students to leading Startup destinations around the world for getting global exposure at a young age. Select College Principals and Teachers would also be sent for gaining international exposure to learn about Startup culture in universities like Stanford, Harvard and MIT and see how MOOC’s are being used in various schools and colleges for education. Similarly, tie-ups may be setup to bring world class Startups to work alongside Startups in Telangana for faster learning and cultural exchange.
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Telangana Government Innovation Policy: Key measures taken
The state’s government has chosen large IT majors such as Microsoft, Oracle, and TCS to base their offices in the city. With the help of corporates, it will set up device-testing labs to provide enterprise software at subsidised rates.
The T-Hub model will be replicated in life sciences, defence and aerospace, hardware and electronics manufacturing.
There will be a separate fund for the development of infrastructure for incubation facilities that will be built under the PPP mode.
A Startup council will be created with CIO and the relevant ministers and government officers.
A major focus will be on sectors such as IoT, healthtech, sustainability, and fin tech and a social impact accelerator will be set up.
Telangana also plans to develop 1 Mnsqft of coworking space for startups in the next five years.
The Telangana Government will partner with 20 global accelerators/incubators to build facilities in PPP mode and will build two incubators in Tier II locations of the State. It will also create outposts in Silicon Valley and Singapore.
A Startup council will be created with CIO and relevant ministers and government officers.
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The innovation policy of the Government of Telangana is based around five broad pillars
* Developing physical infrastructure & program management capabilities
* Focus on creating sustainable funding models, through funds and other instruments
* Develop human capital, by creating the right environment and support systems for learning, experimentation and innovation from the early phases of education
* Proactive engagement with industry to continuously promote and identify innovation
* Encourage startups in the Rural and Social Enterprise space by providing additional incentives
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