Govt Makes No Al­lo­ca­tion for Startup Fund for Next Fis­cal

The Economic Times - - Companies & Economy - Press Trust of In­dia

New Delhi: The gov­ern­ment has made no pro­vi­sion for its am­bi­tious In­dia As­pi­ra­tion Fund, part of Startup In­dia ini­tia­tive, for the next fi­nan­cial year and has re­duced the al­lo­ca­tion to .₹ 100 crore from .₹ 600 crore made ear­lier for the cur­rent fis­cal.

In or­der to pro­vide sup­port to star­tups through Fund of Fund op­er­a­tions, IAF, with a cor­pus of .₹ 2,000 crore, was launched by Fi­nance Min­is­ter Arun Jait­ley in Au­gust 2015 to en­hance the eq­uity avail­abil­ity to MSMEs. LIC was also made part­ner and co-in­vestor in the In­dia As­pi­ra­tion Fund man­aged by SIDBI.

As per the Bud­get 2017-18 doc­u­ment, the gov­ern­ment had made al­lo­ca­tion of .₹ 500 crore for 2015-16 when the fund was launched. In the fol­low­ing year, a pro­vi­sion of .₹ 600 crore was made but re­duced sig­nif­i­cantly to .₹ 100 crore as per the re­vised es­ti­mate an­nounced in the Bud­get 2017-18. The Bud­get, an­nounced ear­lier this month, has not made any al­lo­ca­tion un­der this head for the next fis­cal.

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