The State government has announced the setting up of the ‘Beyond Bengaluru Cluster Seed Fund’ of ₹75 crore to encourage start-ups in Mysuru, Hubballi, and Mangaluru.

“This will be the initial fund to promote start-up entrepreneurs to invest in the three cities. A sum of ₹20 crore will be set aside for 2024-2025 and ₹55 crore will be made available in 2025-2026,” said Law and Parliamentary Affairs Minister H.K. Patil while briefing reporters on the Cabinet decisions.

He also said that a semiconductor future accelerator lab 2.0 will be set up at the cost of ₹79.8 crore of which the State government would invest ₹50 crore and the rest would be borne by the Centre. He said the lab would be established under the Companies Act over a period between 2025 and 2030.

The Cabinet also approved amendments to the Karnataka Pawn Brokers Act, Karnataka Prevention of Exorbitant Interest Act, and Money Lenders Act to bring the punishments and penal fines in line with the Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance, 2025, promulgated recently.

For water security

It also cleared the action plan and proposal to float tenders for 16 works to be taken up under the World Bank-funded ₹2,000 crore water security and disaster resilience project for Bengaluru city. Comprehensive development of Mysuru exhibition grounds at a cost of ₹20 crore, development of Renuka Yellamma temple at Saundatti, Chamundeshwari temple in Mysuru, and Papanash temple in Bidar would be taken up.

The Cabinet also asked Deputy Chief Minister D.K. Shivakumar-led group of Ministers, including the Public Works and RDPR Ministers, to study the recommendations made by a committee on preparing estimates for civic works.