Startup India Gets an "F", Will be Tweaked!

Recently, a review meeting on the initiative was held by the government and it was observed that fewer-than expected startups applied for recognition and only few could make it for incentives. Going by the reviews, the Department of Industrial Policy and Promotion (DIPP) is revamping the initiative in a fiery way, such that it attracts more participation as reported by BI INDIA BUREAU. Some sources told that only Hyderabad-based Cygni Energy was selected while most others failed to provide the required paperwork. In order to attract more startups, DIPP is designing a learning module to educate the startups in areas, including incorporation of a company, business models.

All the remaining applications will be sorted by the government within a day now. Also, a certificate of recognition will now be needed by the startups in order to access legal help to file patents. According to a senior executive at a think tank, government is caught up in the role of being a beneficiary and incentive provider, it need not become a coach but a facilitator by reducing compliances.

Under all this falling hail and rolling thunder, the approval of 930 crore INR for disbursals by Small Industries Development Bank of India (SIDBI) is playing as an umbrella, saving this initiative for now. SIDBI launched a fund-of-funds in August for 2,000 crore INR for supporting venture capital funds for startups. It is also expected that the 10,000 crore INR startup corpus that was announced in the Startup India Action Plan will also be put to use very soon. But till that happens, it is a choppy ride for the government’s boat to float in the Start-up waters!

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