12 July 2009- COIMBATORE: PSG College of Technology Science and Technology Entrepreneurial Park (PSG STEP) has distributed seed funds, under the seed fund support system of the Technology Development Board, to two start-up companies. K. Suresh Kumar, Manager of the park, told The Hindu that the Department of Science and Technology had parked Rs. 1 crore at the STEP to support technology-related start-up firms in three years. In the first round, the park received five applications. It short-listed two firms – Kalycito Infotech of total project cost of Rs. 15 lakh and Vidvus Technology Solutions, with total project cost of Rs. 30 lakh – for support.

The companies would receive Rs. 10 lakh and Rs. 20 lakh respectively as support from the board in three phases, depending on the progress of the project. The first phase of funding was released recently. He said funds were given without collateral security at five per cent interest. The repayment period was five years apart from one year moratorium. Any technology oriented project with commercial potential could apply for assistance. Selected projects should be users of the PSG STEP incubator facility. Each project would receive a maximum of Rs. 25 lakh as support. The next round of selection was likely in September and project proposals were invited from this region, he said. A panel with members from the board, the host institution, industrial associations and industry would evaluate and finalise project for assistance, he said.

Ref: The Hindu