Hyderabad, Feb 10 (PTI) Andhra Pradesh Government isset to enter into an agreement with Israel to boost theopportunities for start-ups, small and medium enterprises(SMEs) in the IT sector, a top state official said today.
Both Governments may sign an MOU in this regardduring Advantage AP 2011'', a two-day corporate event to beheld here from March 1, K Ratna Prabha, PrincipalSecretary-IT, said.
"This will be a unique agreement where the APGovernment is putting about Rs 10 crore and Israel Governmentanother Rs 10 crore as seed money. The MOU is exclusively tosupport start-ups and SMEs in IT and IT-enabled services. Weare still working out modalities," Ratna Prabha told PTI.
As Israel is ranked No. 2 in terms of supporting SMEsto grow their business, the West Asian country will helpAndhra Pradesh-based SMEs identify markets for products andalso arrange for finances for product development, she said.
"The proposed agreement will be basically abouthelping SMEs find market for their products and services. Thetie-up will also help in tying up for funds. This is more of agiving them psychological support."
Speaking about the Government initiatives, she said APis the first state in the country to have mandated that bigcompanies which bagged Government projects should outsource atleast 10 per cent of the work to SMEs.