Karnataka Cabinet clears Rs 100 crore fund for startups

The Karnataka Cabinet on Monday is understood to have approved a venture capital fund of Rs 100 crore that will be used to invest in startups from emerging technology sectors.

The fund will be set up under the Department of Electronics, IT/BT, and Science & Technology.

According to sources, the fund will be to pump capital into startups that deal with artificial intelligence, machine learning, electric vehicles and other cutting-edge technologies.

In another decision, the Cabinet granted administrative approval for the Dharwad-Kittur-Belagavi railway project.

The 73-km rail line will come up at a cost of Rs 927.4 crore, sources said. The long-standing demand to connect the two cities received some momentum earlier this year when funds were allocated for the project in the budget. The new line will have 11 railway stations of which seven are new stations. The Railway Board had cleared the project in 2020.

The Cabinet also cleared a proposal to raise loans worth Rs 1,650 crore for agencies under the Water Resources Department. With this, the Karnataka Neeravari Nigam Ltd (KNNL), Visvesvaraya Jala Nigam Ltd (VJNL), Cauvery Neeravari Nigam Ltd (CNNL) and Krishna Bhagya Jala Nigan Ltd (KBJNL) can raise term loans of Rs 1,650 crore with a government guarantee.

Of the amount, Rs 650 crore will be raised under the Internal and Extra Budgetary Resources heads as term loans for KNNL. And, Rs 250 crore each will be raised by VJNL and CNNL and Rs 500 crore for KBJNL.

Haveri gift

Chief Minister Basavaraj Bommai's home district Haveri received a gift in the Cabinet in the form of a drinking water project worth Rs 645 crore. Administrative approval was granted for the project being taken up under Jal Jeevan Mission by the Rural Development & Panchayat Raj department.

The DBOT project will provide water to 285 villages of Savanur, Shiggaon, Hanagal and Haveri taluks. Bommai represents the Shiggaon constituency.

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