Government
has approved the establishment of “Fund of Funds for Startups” (FFS). The
corpus of FFS is of INR 10,000 crore over a period of 4 years (i.e. INR 2500
crore per year) which shall be released subject to progress of the scheme and
availability of funds.
Rs. 500 crore was released to Small Industries Development Bank of
India (SIDBI) as first tranche in March 2016. Rs. 600 crore has been provided
in the budget for the current financial year. Applications received from
various Alternative Investment Funds (AIFs) for FFS support are under various
stages of processing and approval. Key features of FFS
are annexed.
An
amount of Rs. 500 crore has been provided to the corpus of FFS in 2015-16.
No such data is maintained centrally for assessing the impact of funds provided
through FFS. However, such a provision of funds supplements the domestic
capital of startups and has a multiplier effect in stimulating economic growth
leading to increased production and employment generation.
A
Monitoring Committee comprising of Department of Industrial Policy and
Promotion, Department of Revenue, NITI Aayog, Ministry of Micro, Small and
Medium Enterprises, Department of Science and Technology, Department of
Bio-technology, Department of Electronics and Information Technology,
Department of Higher Education and Small Industries Development Board of India
to monitor implementation of the Action Plan of Start-up India initiative has
been constituted by this Department.
The Committee
shall have the following roles:
1. Review the progress of Action Plan
2. Evaluate the quality and effectiveness of work done
3. Strategic and operational planning for
implementation of various measures
4. Ensure that initiatives meet the needs of
beneficiaries
5. Ensure that the initiative is able to demonstrate
its impact in full measure
6. All measures taken comply with the law and are within
the policy framework.
This information was given
by the Minister of State (Independent Charge) in the Ministry of Commerce &
Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.
ANNEXURE
ANNREXURE REFERRED TO IN REPLY TO PART (b) OF THE
LOK SABHA UNSTARRED QUESTION NO. 1350 FOR ANSWER ON 25.07.2016.
Key
Features of FFS
|
Name of Fund
|
Fund of Funds for Startups
|
|
Fund Manager
|
Small Industries Development Bank of India (SIDBI)
|
|
Fund size
|
Rs.
10,000 crore.
The
proposed corpus of Rs. 10,000 crore would be built up over the 14th
and 15th Finance Commission cycles.
|
|
Investment Focus
|
The
Fund shall be sector agnostic and ensure support to a broad mix of sectors
such as manufacturing agriculture, health, education etc.
|
|
Purpose
|
The
FFS shall contribute to the corpus of Alternative Investment Funds (AIFs).
AIFs
supported under FFS would in turn take up equity in various Start-ups at
early stage, seed stage and growth stage (as defined under Startup Action Plan
notified on January 16, 2016, as modified by Government of India from time
to time)
|
******
MJPS