DPIIT engaged on credit score assure, seed fund schemes for start-ups

New Delhi, September 13

The Department for Promotion of Industry and Internal Trade (DPIIT) is engaged on two schemes — credit score assure and seed funds — to help start-ups within the nation, a high authorities official has mentioned.

DPIIT Secretary Guruprasad Mohapatra mentioned that an inter-ministerial session course of is on to work out the contours of the 2 schemes.

“We are working on a credit guarantee scheme and a seed fund scheme. Both are under inter-ministerial consultations,” the secretary advised PTI.

He mentioned there could be a corpus within the credit score assure scheme which might be given to banks and they’ll leverage that to lend to start-ups.

This scheme would give banks a consolation to lend, he mentioned including that it was for credit score not for enterprise capital.

“This is for CAPEX credit,” Mohapatra added.

On the seed fund scheme, Mohapatra mentioned most start-ups truly confronted issues in elevating finance or funds within the ideation to the proof of idea stage.

“Some states like Gujarat and Kerala already have schemes like seed funds but they are small. The Central Government ministries also have but we want to put a pan India scheme,” the secretary mentioned.

Both the schemes would require the approval of the Finance Ministry after which the DPIIT would search the nod of the Union Cabinet for these two schemes.

He additionally mentioned sure start-ups had raised some points pertaining to ESOPs (worker inventory choice plans) and “that we have forwarded to the revenue department”.

Talking concerning the subsequent version of the rating of states and Union Territories (UTs) on their start-up ecosystem, the secretary mentioned the division had already began the method for that.

The division is encouraging states to develop their start-up coverage to advertise budding entrepreneurs. In the 2019 rankings, Gujarat has once more emerged as one of the best performer in growing start-up ecosystems for budding entrepreneurs.

The authorities had launched Start-up India Action Plan in January 2016 to advertise budding entrepreneurs within the nation. The plan goals to provide incentives comparable to tax vacation and inspector raj-free regime and capital positive aspects tax exemption. PTI

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