Karnataka to release rules for Rs 200

MC INTERVIEW Karnataka to release rules for Rs 200-crore startup fund, launch Nipuna Edge AI skilling programme: IT Secretary

Karnataka is stepping up its technology push with focus on artificial intelligence (AI), startup funding, sustainable data centres and decentralising the technology ecosystem beyond Bengaluru.

In an interview to Moneycontrol, Karnataka IT-BT and science & technology secretary Dr N Manjula outlined plans to launch Nipuna Edge AI skilling programme, Rs 200-crore fund of funds, promote treated wastewater for industrial use and make the government a first customer for startups.

You have completed a year as IT-BT secretary. What have been your priorities?

One of our immediate priorities was the Bengaluru Tech Summit 2025. We also scaled up the event and organised the Future Makers Conclave, where more than Rs 400 crore of investment was committed, of which around Rs 350 crore has been disbursed.

The Future Makers Conclave highlighted the need to strengthen the student innovation ecosystem, particularly beyond Bengaluru. We want to improve the quality and industry relevance of student projects by deepening industry-institutional linkages and encourage students to work on projects that address real-world challenges and deliver meaningful outcomes.

Also read: Bengaluru to get INNOVERSE, a deep-tech innovation campus; work to start next year: Karnataka IT secretary

What are the key focus areas for the next year?

AI will be a major focus, including responsible AI, AI skilling, certification programmes and an AI hub, which we are initially considering at IIIT-Bengaluru. The proposed AI university will focus primarily on higher education and R&D. Other key priorities will include data centre policy, sustainable data centres, Rs 200-crore fund of funds and deep technologies.

How can startups be tapped for government projects?

The key element will be government-first policy. Government departments face several challenges that startups can potentially help solve, including in areas such as water, agriculture and weather monitoring.

Instead of immediately going through the full procurement process, we want to facilitate pilots. The finance department has approved funding of up to Rs 25 lakh per project, with the aim of supporting up to 100 projects.

A technical committee comprising representatives from the user department, IT department and industry or domain experts will assess the technologies. Successful pilots can then move to larger-scale implementation through the regular procurement process.

Also read: Karnataka's state-backed venture funds invest Rs 171 crore in 59 startups

Karnataka has earmarked Rs 200 crore for a fund of funds. What is the plan?

We will shortly issue the guidelines, and are primarily examining a co-investment model. Where an investor has completed due diligence and invested in a startup, the government could come in alongside the investor, helping to catalyse further investment and provide additional support to the startup.

A committee headed by an experienced investor, with participation from venture capital community, including Indian Venture Capital Association, is being constituted to recommend the framework.

How is Beyond Bengaluru progressing?

There is growing interest. Mysuru is progressing well, with Global Technology Centre ready and companies occupying space. We are also focusing on Mangaluru, Hubballi-Dharwad-Belagavi and Kalaburagi.

What does Karnataka’s responsible AI framework seek to achieve?

It will provide a roadmap for the responsible and ethical adoption of AI across governance and the public and private sectors. It will cover areas such as AI skilling, citizen service delivery and ways in which the government can leverage AI effectively.

The committee’s recommendations are ready and we are working on the formal launch. It is also examining the structure of the proposed AI university, which is expected to focus primarily on postgraduate and postdoctoral programmes and R&D.

Also read: Karnataka open to partnering with Sarvam and other AI firms, not just Anthropic, says Priyank Kharge

How is Karnataka addressing concerns over AI-driven layoffs?

As AI becomes increasingly integrated across industries, skilling and upskilling will be essential to ensure our workforce is prepared for the opportunities it creates. Under Nipuna, we are encouraging corporates looking to hire talent to use the platform for skilling and developing the talent they need.

We are also developing Nipuna Edge, an online programme that learners can pursue at their own pace over six months to a year, supported by one-on-one mentorship.

We will also introduce more capstone projects where students, fresh graduates and young professionals work on real-world industry projects. This will provide practical experience and improve employability.

Also read: Anthropic delegation meets Karnataka CM; state proposes opening govt datasets to develop AI-powered public solutions

How is Karnataka addressing water and power concerns around data centres?

Newer data centres are increasingly adopting technologies such as air cooling and water recycling. Under the proposed data-centre policy, efficient use of water and power will be incentivised.

Bengaluru consumes around 2,600 MLD of water and generates around 1,300 MLD of wastewater. As another 1,000 MLD is added in the next phase, we want to explore using treated wastewater for industrial purposes, including data centres. At the same time, we are looking at a more achievable data centre capacity target of around 500 MW to 1 GW.

Also read: Karnataka, Anthropic to form AI working groups; expand AI skilling via Claude certifications

What is the status of INNOVERSE and MIST at the old NGEF factory in Byappanahalli?

Heneghan Peng Architects has been onboarded as the design consultant and we plan to lay the foundation stone for the first phase during Bengaluru Tech Summit. INNOVERSE will focus on startups and deep-tech innovators, while MIST (Museum of Innovation, Startup & Technology) will showcase Karnataka’s digital transformation and Bengaluru’s technology journey.

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