DIPP Secretary Ramesh Abhishek has announced that the Union Cabinet is expected to approve the $300 Mn (INR 2,000 Cr.) fund for startups by the end of July 2017. This announcement was made at the Startup India Hub launch yesterday.
The Finance Ministry has already approved the proposal for the Credit Guarantee Fund last week.
“One startup will get a maximum of $775K (INR 5 Cr). We are hoping to get the cabinet approval on this by end of July to operationalise this fund. About 7,500 startups will benefit from this. Also, it will generate an additional funding of $2.32 Bn (INR 15,000 Cr),” he added.
The Department of Industrial Policy and Promotion (DIPP) had proposed to set up a Credit Guarantee Fund in October 2016. The fund aims to support the ventures’ and entrepreneurs’ risk-taking abilities. With this fund in place, the startups would receive financial support from banks and financial institutions with a collateral-free guarantee.
The DIPP has been playing a key role in executing the Modi Government’s ‘Startup India, Stand Up India’ mission.
Out of all the applications received, 1,333 have been recognised as startups by the DIPP. 39 Startups have been approved for availing tax benefits by the IMB, as of June 2017.