Thiruvananthapuram, Sep 12 (IANS): Kerala Thursday decided that one percent of its budget would be earmarked for entrepreneurship schemes of the young, Chief Minister Oommen Chandy said, adding the amount would be approximately Rs.500 crore.

"On this day last year we announced the Student Entrepreneurship Policy (SEP) and it has had a huge response from the young, mostly students who have turned to the IT sector. This time, we are now extending this to other sectors also," Chandy said.

"We have decided to see that the amount that we have earmarked will be given to the youth who venture out for projects in agriculture, tourism, entertainment, industries and similar sectors," Chandy explained.

Chandy was addressing the media soon after he connected with more than two million school and college students through Google Plus Hangout.

He also announced that all colleges in the state have been asked to begin entrepreneurship development clubs.

He added that all student entrepreneurs will now get 20 percent grace on attendance and four percent on marks.