Bhubaneswar, Aug. 4: The state government will provide a monthly allowance to recognised start-ups.

In the initial phase, a grant of Rs 20,000 per month will be provided to eight start-ups working in diverse innovative areas. One of the beneficiaries is Phoenix Robotix Private Limited, which is developing technologies based on Internet of things (IoT) and wireless sensor networks for industrial applications. The company has already employed 23 persons.

Another beneficiary is Maiestas Technologies Private Limited that is working on next generation LED luminaries. It provides direct employment to more than 75 persons.

Three start-ups founded by women entrepreneurs will also get aid. They are D.D. Bio Solution Technology, Krea Foods and Beverages, and Prantae Solutions.

"The grant would help create new avenues for the start-ups many of whom are suffering from monetary crunch," said Ananda Mishra, founder of Bhubaneswar-based online grocery store Grozip.

Also, the state government has given recognition to some 80 start-ups in the last two months in what is being considered as a major boost to the start-up sector in Odisha. Some 32 more start-ups are in the process of getting recognition.

This was revealed during the second meeting of the task force held under the chairmanship of L.N. Gupta, additional chief secretary of the state micro, small and medium enterprises.

"The task force also recommended to IDCO to consider giving priority to recognised start-ups in the matter of land allotment. It has also been decided to extend mentorship support to the applicant start-ups at IIT, Bhubaneswar, KIIT-TBI and IOT Centre of Excellence at Nasscom, Delhi," said Gupta.

The state government has set a target of creating 1,000 start-ups by 2020. The state also has more than 20 incubators at present.

Recently, the state government signed an agreement with Invest India, the national investment promotion and facilitation agency of the Union ministry of commerce and industries, to promote start-ups. A toll-free start-up helpline -1800-345-7100 - was also launched.