Chennai, Sept 21 (KNN) On Wednesday, Chief Minister MK Stalin unveiled the updated ‘Tamil Nadu Startup and Innovation Policy 2023’.

The revamping policy features more than 50 action points to help the state become a leading start-up ecosystem. According to the policy, the state government will create a Rs 100 crore fund called the Tamil Nadu Co-Creation Fund, for investing in regional and thematic funds.

Drawing inspiration fr0m Israel's successful Yozma model fr0m the 1990s, where innovative industries were jump-started through investments in new venture capital funds, the fund will be managed by individual investors and overseen by StartupTN.

A start-up has also been redefined under the policy. Ventures by persons fr0m socially marginalised communities that apply proven innovative techniques in other sectors for the betterment of the socio-economic conditions of their communities will also be considered startups. This is in addition to the existing criteria of a startup, according to the policy.

As per the new policy, the state will contribute 40 per cent (with a ceiling of Rs 10 crore) in regional, rural impact, women and climate action-focused funds and 20 per cent (with a ceiling of Rs 5 crore) in other thematic funds promoted by the private sector.

The fund size should be Rs 20 crore and above in case of a new fund. The government will bear 75 per cent and 50 per cent of the fund setup costs, respectively, for the above-mentioned categories.