Government looking at deploying larger funds for startups: Piyush Goyal

Amiti Sen Panaji | Updated on December 07, 2019 Published on December 07, 2019

Commerce and Industry Minister Piyush Goyal   -  PTI

Startups and investors asked to share regulatory concerns

The government is looking at deploying larger funds for startups through the banking process and simplifying regulations further, Commerce and Industry Minister Piyush Goyal has said.

"With deployment of larger funds and changes in regulatory process based on inputs given by the sector, we are looking at a further simplified regime for the startup community," Goyal said addressing participants at the ' Startup India Global Venture Capital Summit' in Goa on Saturday through video conferencing.

The startup community has been pushing for faster release of funds for investors from the government's Rs 10,000 crore Funds managed by the Small Industries Development Bank of India (SIDBI).

According to data from SIDBI, the total allocation from the Rs 10,000 crore corpus stood at Rs 2,265.70 crore on March 31, 2019, up from Rs 1,750.70 crore as on December 31, 2018. The fund was launched in 2016.

A total of 134 investors from various countries, including the US and Japan, are participating in the on-going two-day startup summit in Goa.

Senior officials from the Department for Promotion of Policy and Internal Trade (DPIIT), SIDBI, SEBI and the RBI are also participating in the event to discuss regulatory issues.

 Goyal asked startups and venture capital investors to share their concerns with the government so that they can be suitably addressed.

"Whatever difficulties and concerns that startups and investors are facing must be communicated to the government. I assure you that they will be addressed," Goyal said.

While startups are now relieved with the government doing away with angel tax, they are unhappy with low deployment of government funds as well as imposition of GST on fund managers.

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Published on December 07, 2019
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