Rs 10,000 crore Fund of Funds Scheme to focus on manufacturing, high-tech startups: DPIIT Secretary

The recently announced Rs 10,000 crore Fund of Funds Scheme (FFS) for startups, unveiled successful the Budget, volition absorption connected manufacturing and high-technology sectors, which necessitate longer-term funding, a apical authorities authoritative stated connected Tuesday.

Secretary successful the Department for Promotion of Industry and Internal Trade (DPIIT) Amardeep Singh Bhatia said this caller strategy would beryllium an wholly antithetic money that volition code the needs of startups that prevarication betwixt those dealing with high-end exertion and the ones focussed connected improving nationalist work delivery.

The authorities connected Saturday announced a caller FFS with Rs 10,000 crore corpus to beforehand maturation of budding entrepreneurs successful the country. In 2016 also, the authorities launched a akin scheme, with a corpus of Rs 10,000 crore, with contributions dispersed implicit the 14th and 15th Finance Commission cycles.

Bhatia said the archetypal bid of FFS has helped successful gathering the AIF (alternate concern fund) ecosystem successful the state which provided much-needed superior to startups.

For the 2nd series, announced successful the Budget, "We already had consultations with AIFs, with SIDBI...We expect that this should assistance successful covering the ample spectrum of startups which request longer duration of funds, which request antithetic types of backing beyond the equity infusion," helium added.

He stated that the caller strategy would not beryllium topping up the already functional FFS.

Through the archetypal FFS launched successful 2016 concern of much than Rs 21,700 crore has already been catalysed by Alternative Investment Funds (AIFs) successful much than 1,180 startups.

These AIFs are mobilising a corpus of astir Rs 91,000 crore by raising funds from different investors.

"We privation to grow it (new FFS). There was a 10-year bounds successful the archetypal one, present we tin marque it for 14-15 years that volition conscionable the longer backing requirements which are into high-tech areas, whose gestation play is more," the caput said, adding that the per startup headdress tin besides beryllium relooked.

Debt funds are besides an enactment nether discussions, helium added.

Speaking astatine the briefing, Joint Secretary successful the DPIIT Sanjiv said: "This volition beryllium antithetic from the archetypal one. We volition effort to bring thing more. We volition framework the strategy successful a mode truthful that 20 times money mobilisation happens. In the first, 10x money was mobilised".

The Budget besides announced a FFS for Deep Tech Startups to alteration diligent capital, enactment disruptive innovations and for backing of larger summons size.

"We volition research however we volition bring FFS for heavy tech startups arsenic it requires semipermanent funds," Bhatia said, adding that consultations with the stakeholders are on.

On the Budget announcement astir the Jan Vishwas Bill 2.0 for decriminalising much than 100 provisions successful assorted laws, the caput said that 11 ministries person been progressive successful the workout and the amendments person been projected successful areas similar Motor Vehicles Act, Textile Committee Act and Legal Metrology Act.

The Jan Vishwas (Amendment of Provisions) Act, 2023 decriminalised 183 provisions crossed 42 Acts.