Life Insurance Corporation of India and other pension funds “must step in” to fund start-ups, Department of Industrial Policy and Promotion Secretary Ramesh Abhishek said on Friday.

“LIC and other pension funds must step in... definitely that money needs to be leveraged,” Abhishek said here at the India Economic Summit, jointly organised by the Confederation of Indian Industry and the World Economic Forum.

Speaking at a session on start-ups, Pinstorm founder and Seedfund co-founder Mahesh Murthy said big companies such as LIC and cigarette firms are found wanting as far as funding of start-ups is concerned.

“I am taking note (of this suggestion),” Abhishek said, adding that the government is engaging with start-ups to resolve issues to give a push to budding entrepreneurs.

On the ₹10,000-crore Fund of Funds, the Secretary said it would mobilise about ₹50,000 crore private investments in start-ups over a period of time. Small Industries Development Bank of India (SIDBI) is implementing the Fund of Funds.

“It has started the implementation; we want to fast-track it. Processes are rather slow; we are figuring it out.”

Abhishek said e-pharmacy firms are not flouting any law, contrary to the police’s claims.

“Police inspectors are not very trained in such matters. Now, we are trying to take up this matter with States,” he said.

The DIPP has identified some 25 problems faced by start-ups, and is sensitising departments and ministries on these.

Paytm founder Vijay Shekhar Sharma pointed to the need of large Indian companies to fund start-ups.

“We do not have that inspiration. We have to have Indian investors. Why are we not playing a big bet? We do not get support from local companies,” he said.

Ritesh Agarwal, founder and CEO of OYO, felt capital is not a big issue, but there are constraints at local levels.

Related Topics
comment COMMENT NOW