Govt Makes No Allocation for Startup Fund for Next Fiscal
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.