New Delhi: In a push to the government’s Startup India campaign, the Cabinet on Wednesday approved Rs 10,000 crore ‘Fund of Funds for Startups’ to support them with an aim to generate employment for 18 lakh persons.
“The fund is expected to generate employment for 18 lakh persons on full deployment... A corpus of Rs 10,000 crore could potentially be the nucleus for catalysing Rs 60,000 crore of equity investment and twice as much debt investment,” an official statement said.
The Cabinet has approved the establishment of ‘Fund of Funds for Startups’ (FFS) at Small Industries Development Bank of India (SIDBI) for contribution to various Alternative Investment Funds (AIF), registered with Sebi which would extend funding support to startups, the statement added. “This would provide a stable and predictable source of funding for startup enterprises and thereby facilitate large scale job creation,” the sources added.
Further provisions will be made as grant assistance through gross budgetary support by DIPP which will monitor and review performance in line with the ‘Start up India Action Plan’.
