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Kerala: Skewed policy upsets startups

Little space for local firms in IT parks

KOZHIKODE: Startups are at the receiving end in the Malabar region although the government says it is committed to promoting them. Little space has been provided to startups in the government Cyber Park that is to be opened soon and the one owned by the Uralangal Labour Cooperative Society here though turning Kozhikode district as the next IT hub of Kerala after Ernakulam and Thiruvanthapuram was the dream of IT Minister Kunhalikutty.

The major portion of space in the parks has been reserved for multinational companies. The IT minister has justified it saying, “the presence of more MNCs is needed to brighten up the IT sector of Kerala and we require more investment in the sector for future prospects.”

The government cyber park, the third one owned by the state government, will provide space for leading MNCs and their names will be disclosed after the completion of the entire procedures, he added.

The majority of the startup representatives in Malabar region are sore over the government neglect towards them. “Though Kozhikode city can boast of two major cyber park projects and other IT agencies, they are not of use for startups like us,” said Arjun Hari, founder of a start-up incubated at Technology Business Incubator at NIT-K.

The startups require only minimum space to run their companies comprising some 15 to 25 staff members, said Mr M.T. Ramakrishnan, CEO, Calicut Forum for Information Technology (CAFIT). But cyber parks offer large space keeping in mind the MNCs. The government will provide incubating facilities for startups in Kozhikode, he added.

“Financial constraints do not allow us to opt for large space in cyber parks,” said Akhil K. Joseph, a startup founder with KINFRA. The government should allot small space for startups, which will indirectly help in promoting more companies here and develop the IT sector locally, he opined.

Government Cyber Park CEO R. Ajith Kumar said that the government had proposed projects to promote startups. Incubators will be set up attached to the cyber park to provide space for them, he said.

( Source : Deccan Chronicle. )
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