MVA mulls ways to push start-up fund

One such plan is to convert the State Skill Development Society – with Rs 100-crore corpus -- into a company under Section 8 of the Companies Act

The MVA government, in a bid to promote skill development, is mulling over a proposal to convert the Maharashtra State Skill Development Society into a company under Section 8 of the Companies Act. The society with Rs 100-crore corpus can provide funds to start-ups.

“The society happens to be the single nodal agency for planning, coordination, execution and monitoring of skill development initiative. After its makeover into a company, it can provide money for startups. As the start-up grows the company can pick up shares. In due course of time, the company can pay dividend to the government and this will help increase the company's corpus,” Minister of Skill Development Nawab Malik told FPJ.

(A Section 8 company can be registered for charitable purposes. The Section 8 companies are similar to trusts and associations.)

This is in addition to the various initiatives taken by the state government to promote start-ups under its new policy. It aims at propelling economic growth and generating jobs by encouraging entre-preneurs to offer novel solutions in new-age sectors such as biotechnology, artificial intelligence, internet, clean energy as well as helping revamp traditional sectors.

Malik said the society’s Rs 100 crore corpus can be effectively harnessed in this direction.

Furthermore, the department plans to join hands with IT companies for carrying out placements. ‘

“Already, a couple of IT companies have made presentations. However, the department is yet to select one for the purpose of placements.

The company will release placement advertisements and connect with companies from various sectors on a special website with the department's support.

The department and the IT company can share the placement charges,” he noted. Malik said it is the government's attempt to work as a bridge between the employers and the job seekers. Moreover, the minister mentioned that skill development is being undertaken through corporate social responsibility funding.

“However, the department plans to involve the Board of Vocational Training which can ultimately issue a certificate to the trainee. This is to send a signal that the department and the Board are strongly supporting the initiative,” he added.