Startup Fund: ₹10000 crore startup fund to be spent on new age technology, areas like AI to be benefitted
New Delhi| The Ministry of Commerce and Industry has made a big announcement related to the second Fund of Funds Scheme (FFS) of Rs 10,000 crore for startups. According to the government, a large part of this will be allocated to budding entrepreneurs in sectors like new age technology, artificial intelligence (AI) and machine manufacturing.
New plan along the lines of 2016 to help startups
In the budget, the government has announced a new FFS with a fund of Rs 10,000 crore. In 2016, the government had launched a similar scheme. “We are going to dedicate the bulk of this Rs 10,000 crore fund to new age technology, AI and machine building”, an official said
This scheme for the year 2016 was launched to promote capital investment in domestic enterprises. It is operated by Small Industries Development Bank of India (SIDBI). Under this, capital is provided to AIFs (Alternative Investment Funds) registered with the Securities and Exchange Board of India (SEBI), who in turn invest in startups.
Startup India initiative was launched on 16 January 2016
The official has expressed hope that SIDBI will manage the second scheme also. The Government had launched the Startup India initiative on January 16, 2016 with the intention of creating a strong ecosystem in the country to promote innovation and promote startups.
As per the eligibility conditions of the government, entities under the Startup India initiative are recognized as ‘Startups’ by the department. So far more than 1,50,000 entities in more than 55 industries have been recognized as startups. These units are eligible to receive tax and non-tax incentives under the Startup India Action Plan.
