Startups seek CSR Funds to Vanquish Covid-19 aftermath


Startups seek CSR Funds to Vanquish Covid-19 aftermath

The drastic step of maintaining a total lockdown to combat Covid-19 impact has hugely affected the functionality of the startup ecosystem. To overcome this economic erosion, startups are seeking help from the centre, expecting a 50 per cent reimbursement of the salaries for a month at least for the DPIIT-registered ones. They are also demanding a one-time grant of Rs 20 lakh each.

This idea is supported by both the new and the emerging businesses in the industry. They hold the opinion that this could help the businesses once again gain momentum and start ministering the ups and running positively. In a poll conducted about 38 per cent respondents agreed on keeping one per cent should be allowed to be put into startups/SMEs and the other  one per cent into CSR.  Whereas the other 27 per cent said the entire two per cent should be allowed to be put into Startups/SMEs and none into CSR.

However there are few startups who believe that governments intervention here can help a lot. Around 31 per cent of the startups said that the government should reimburse 50 per cent salaries of startup employees for one month for all DPIIT registered startups. The other 23 per cent opined that a one-time grant of Rs 20 lakh should be given to all DPIIT registered startups with ROC filings up to date.

Analysing the situation and the demand, Sanjeev Bedekar, director, Diginetic Technologies said that funds in the form of grants from the government would be of great help the startupsas they will be able to get their business back on track and keep creating the magic and impact in the society.