Sunday , October 23 2016

Pension funds of LIC need to invest in start-ups: DIPP Secretary

Abhishek said the Centre has been making an attempt to sensitise states on the requirement for supporting start-ups and incubators through their various policies.

Ramesh Abhishek
DIPP secretary Ramesh Abhishek.

In order to spice up start-ups, the govt. would contemplate a slew of policies that might, among different things, enable pension funds also as insurance corporations like LIC to take a position in start-ups, in line with Department of industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek.

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LIC and pension funds should step in (in the start-up segment). Employees’ Provident Fund Organization had recently taken steps to extend their exposure in stock markets. Therefore positively their cash has to be leveraged (for start-ups), Abhishek said at the planet Economic Forum’s India Economic Summit 2016.

Mr. Abhishek, who is answerable of DIPP, the nodal Central department for start-ups and its connected policy ‘Start-up India’, said he has in person written to over a hundred corporates to utilize their company Social Responsibility funds for start-ups and incubators. He said the govt. has already established an Rs 10,000 crore Fund of Funds, which can in four years facilitate mobilise non-public investments price around Rs 50,000 crore for investments into start-ups.

Mr. Abhishek was responding to a grievance advises by Seed fund India Managing Partner Mahesh Murthy that giant insurance corporations like LIC invests mainly in stock markets and in huge corporations that ar in sectors like cigarettes however not in start-ups. Srivatsan Rajan, chairman, Bain & Company India, said though insurance and pension corporations have an oversized pool of funds, it’s to this point been terribly tough for start-ups to access that resource attributable to difficult government laws. “We ought to notice the simplest way to open it (pension & insurance funds) up for start-ups,” he added.

Vijay Shekhar Sharma, founder and chief officer (CEO), Paytm India, said giant Indian corporations and investors haven’t been aggressive and proactive enough relating to funding India-based start-ups. Ritesh Agarwal, founder and chief executive officer, OYO Rooms, India, same it absolutely was the responsibility of start-ups to proactively inform lawmakers and governing body relating to the requirement for reforms in laws to make sure that they’re in correct with the most recent developments within the start-up sector.

Mr. Abhishek said the Centre has been making an attempt to sensitise states on the requirement for supporting start-ups and incubators through their various policies. Besides, the commerce & business ministry has asked all the opposite ministries to annually create public their overall merchandise and services necessities and procure from start-ups also. He asked start-ups to specialize in resolution issues in agriculture and producing sectors and facilitate produce employment in those areas additionally to their specialize in services sectors.

On complaints that on-line corporations are being annoyed by regulators and inspectors, Abhishek same the DIPP has haunted such problems with the involved authorities. Many such incidents are happening because the law and law-enforcement agencies haven’t maintained pace with the rising digital businesses, he said.

The DIPP has haunted with many state governments’ complaints relating to native inspectors harassing e-pharmacy corporations for merchandising medicines on-line even with doctors’ prescription, Mr. Abhishek same. Similarly, the ceiling on the quantity of taxi cars in sure cities is distressful on-line taxi cab aggregating corporations, he said, adding that such artificial restrictions ought to be done away with to assist start-ups within the phase flourish. “There shouldn’t be any laws which will choke the start-up system,” Mr. Abhishek same.

Post expires at 5:40pm on Sunday December 11th, 2016

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