Ministry of Electronics and Information Technology (MEITY) approved, Center for Technology Incubation and Development of Entrepreneurs (TIDE) at the Indian Institute of Management-Visakhapatnam pledges to promote startups.
IIM-V is the fifth IIM in the country to have the TIDE Centre.
The centre will receive a grant of Rs 1.7 crore from Meity to allow it to play the role of an angel investor in technology start-ups.
IIM-V will run the centre as a Section 8 company with a mission to promote and support technology start-up companies.
Agriculture and water management, health and nutrition, education and skills development, financial inclusion and smart cities and smart transport should be core areas of technical start-ups.
Talking to TOI, IIM-V Director Professor M Chandrasekhar said the Rs 1.7 crore grant can be invested in five technology start-up companies.
"Each business selected for incubation will obtain financial support in the form of a soft loan for a maximum duration of three years.
By the end of three years, the company will have to repay by least half of the funds invested in the respective start-up.
The remaining 50% of the assets will be turned into equity.
The company of Section 8 proposed by the IIM-V to set up the centre has already earned the approval of the IIM-V board, "said Prof. Chandrasekhar.
Prof Chandrasekhar added that the IIM-V incubation of a specific start-up and representation on the board of the company would raise investor confidence.
"IIM-V, as the host institution, will extend its full support to the centre's start-ups, including mentoring, entrepreneurial training, offering business connections, market research, expertise and facilities. This will help to promote creativity at IIM-V, paving the way for more indigenous products. Institutional students can also gain hands-on experience and will help start-ups build business models, "said Prof. Chandrasekhar.
Prasad Dahapute, one of the members of the IIM-V Board of Directors, will be the Chairman of the Section 8 Company, while IIM-V will be the Chief Executive Officer. The Chairman of the Entrepreneurship Development Cell and the IIM-V Faculty, Mohammad Schandeem Jawed, will be Chief Operating Officer.
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