Rs 2,000-cr credit guarantee fund for start-ups soon

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SME Times News Bureau | 17 Oct, 2016
In addition to softening regulations for Start-Ups to further motivate their entrepreneurship, the government would shortly set up a Credit Guarantee Fund with a corpus of Rs.2000 crores to support their ventures and risk taking abilities, says the Secretary, DIPP, Ramesh Abhishek.

Addressing a Conference on Start Up India, Challenges and Sustainability organized by PHD Chamber of Commerce and Industry in New Delhi on Saturday and which was presided over by Minister of State for HRD, Dr. Mahendra Nath Pandey, the Secretary added that with this corpus of Rs.2,000 crores in place, the Start-Ups would receive financial support from banks and financial institutions with collateral free guarantee.

Without prescribing any time limit as to when the Credit Guarantee Fund would come about, Mr. Abhishek, however, added that with this fund being operational in near future, the Start-Ups could look up for financial assistance for their ventures that would be available easily.

Elaborating on the issue of softening existing regulations for Start-Ups, Abhishek pointed out that DIPP would take up this issue with entities such as RBI, SEBI and Department of Corporate Affairs among others.

Responding to a suggestion mooted by the President, PHD Chamber, Dr. Mahesh Gupta seeking relaxations on existing taxes for Start-Ups, the Secretary, DIPP said that this issue was also being perused by the government among the various concerned stakeholders since the Start-Ups venture is one of the top priorities of the Modi government as it would not only create wealth for promoter of such ventures but also facilitate employment creation.

Speaking on the occasion, the Minister of State for HRD, Dr. Pandey also felt that sufficient incentives and motivations should be given to those that wish to set up their venture with the spirit of innovations and also suggested that the spirit of innovations need to be promoted at the basic levels of Indian education system through vernacular mode of communications.

Among others who spoke on the occasion demanding sufficient and adequate supportive policies to promote Start-Up ventures in India comprised Secretary, Department of Science and Technology, Prof. Ashutosh Sharma; Additional Secretary, DIPP, Sanjeev Gupta; Secretary, Department of Biotechnology, Prof. K Vijay Raghvan and President, Alumni Association, IIT Kanpur Outer Delhi Chapter, Anurag Goel.