New norms for startups on anvil

New norms for startups on anvil
Highlights

With an objective of promoting startups across the country, the Centre along with other states are working on several issues for an ideal framework for budding entrepreneurs, said an official at DIPP.

Hyderabad: With an objective of promoting startups across the country, the Centre along with other states are working on several issues for an ideal framework for budding entrepreneurs, said an official at DIPP.

Ramesh Abhishek, Secretary at Department of Industrial Policy and Promotion (DIPP), said that Centre and state governments were keen on removing regulatory hurdles.

Abhishek was speaking at a session of the Global Entrepreneurship Summit (GES-2017) here on Thursday. “With a view to encouraging budding entrepreneurs in the country, the central and state government will arrive a common solution for entrepreneurs. There’s a need for a differential treatment of sectors such as startups, smart technology and disruptive businesses.”

He further said that “governments need to be far more sensitive in responding to regulations for disruptive business models and this is something which we are working on state and central governments and even regulators are trying to work together and many laws we have been able to change in the last one and a half years.”

To enhance funding facilities to budding entrepreneurs, the government is in the process of setting up a Rs2,000- crore credit guarantee fund. This fund will be used to lend to startups without any collaterals. As many as 5,000 startups have registered so far with the Department of Industrial Policy and Promotion (DIPP).

"We are hoping that Rs 1,600 crore more will be committed by March," he said, adding that the disbursement depends on the stage of the startup. The secretary further said the government has relaxed norms to increase startups in public procurement processes.

NITI Aayog said it was working with industry bodies such as Ficci for supporting budding entrepreneurs particularly women. Anna Roy, Advisor, NITI Aayog, said: “We can have a UBER or Ola kind of company, which can buy machinery and lease it out to farmers, as it is expensive for a farmer to go for it. Some startup can buy machines and aggregate the demand and provide the service.

This way not only the startup will earn, one of the problem areas gets resolved. If we have more such problem solving startups, it will be a win-win situation for all. NITI would like to collaborate with FICCI and provide a platform where we can bring various stake holders together and enable you all to prosper.”

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