Premium| Listen to this article |
The central government will create a new equity fund for start-ups with a 20% limited stake to provide additional capital support to the entrepreneurs, Minister of State for Electronics and IT Rajeev Chandrasekhar said on Saturday.
The corpus will be managed by private fund managers, the minister said, adding that Finance Minister Nirmala Sitharaman has already made announcement in this regard.
Chandrasekhar said the finance minister has announced that there will be such a fund where the government will be a 20% limited partner and it will be managed by private fund managers.
"There will be a fund that will be sponsored by the government of course but it will be managed like any other private fund. That will create required private equity capital as an addition to what exists today," the minister said at an event conducted by CII.
Finance Minister Sitharaman has announced creation of government-backed funds to encourage important sunrise sectors, such as climate action, deep-tech, digital economy, pharma and agri-tech.
The centre has already created Startup India Seed Fund Scheme (SISFS) with an outlay of ₹945 crore to help start-ups in meeting their capital requirement.
Chandrasekhar today said it's a great time to be an entrepreneur and it is a great time to be a start-up. "It is an absolute mission and article of faith for our Prime Minister and our government that the expansion of the start-up ecosystem, funding it, fuelling it, and creating innovations in the start-up ecosystem...are out there in a post-Covid world in a manner where intellectual properties are created," he said.
With inputs from PTI
Never miss a story! Stay connected and informed with Mint. Download our App Now!!