Karnataka allocates over Rs 160 crore to boost startups beyond Bengaluru

The Karnataka Cabinet has approved over Rs 160 crore to promote startups, focusing on semiconductor technology and expanding entrepreneurial activity beyond Bengaluru.

At a meeting chaired by Chief Minister Siddaramaiah, the Cabinet sanctioned Rs 75 crore for the Ministry of Electronics, IT, and Biotechnology to establish a cluster seed fund. This initiative aims to foster startup growth and employment generation in cities such as Mysuru, Mangaluru, and Hubballi. The state will allocate Rs 20 crore in the current fiscal year and Rs 55 crore in the next.

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Additionally, Rs 89.80 crore has been earmarked for the Semiconductor Fabless Accelerator Labs (SFAL) 2.0 project. This initiative, backed by the Department of IT/BT and the Karnataka Innovation Technology Society (KITS) in partnership with the India Electronics and Semiconductor Association (IESA), seeks to strengthen India’s semiconductor ecosystem. A sum of Rs 50 crore will be disbursed between 2025 and 2030 to support this effort, with the lab operating as a Section 8 company.

The Cabinet also approved a Rs 285 crore contribution toward infrastructure development at the Indian Institute of Information Technology, Bengaluru (IIITB), as part of an Rs 818 crore project co-funded by the central government. Other decisions include Rs 12.88 crore for a planetarium and science center in Vijayapura and land allocation for a Congress party office in Hubballi.