In a move to boost start-up ventures in the country, the Government is likely to soon push all profit-making Public Sector Units (PSUs) for creating the start-up funds to accelerate productivity and growth, especially in manufacturing and Information and Technology (IT) space. The Government has directed almost all ministries to prepare a list of such PSUs for this purpose, according to a senior Government official.The move comes at a time when the Government is making its all-out effort to develop a start-up ecosystem in the country. After launching ‘Start-up India’ this year, the Centre is looking into all possibilities to initiate a healthy business environment for the start-ups in almost all sectors in India, mostly in profit-making ones.
“The Government has shortlisted some profit-making PSUs in power, banking, oil & gas, energy, engineering among others to create funds in order to provide a support chain to the start-ups who are linked with the firms in some way or the other,” said the official.
With digital technology making greater inroads into banking and IT sectors, majority of financial institutions have upped their engagement promote start-ups in their fintech space. “The department of expenditure under Finance Ministry is working on it to encourage the budding entrepreneurs in the country. It will send the suggestions to different ministries for the concerned PSUs and will seek their feedback in this regard. I think both start-ups and concerned firms will share their innovative ideas to grow mutually in a common platform,” he added.
In line with the Government’s ‘Start-up India
According to Commerce and Industry Minister Nirmala Sitharaman, start-ups are the next big economic force in India. “Close to 4,400 technology start-ups exist in India and the number is expected to reach over 12,000 by 2020. The Government will facilitate to ensure that world’s best start-up ecosystem is in India,” she had said recently.
To make this initiative a big success in the country, the Department of Expenditure has already issued a directive to all ministries that all start-ups, be micro, small or otherwise, may now be allowed Relaxation from certain eligibility criteria in the tendering process.
The move will be the most helpful to start-ups in the manufacturing sector and enable them to participate in such Tenders with relaxed eligibility conditions.
In March this year, after Prime Minister Narendra Modi launched the ‘Start-up India’ campaign, the Micro, Small and Medium Enterprises (MSME) Ministry issued an order to all Ministries and central public sector units to relax conditions related to prior experience and turnover for start-ups in all public procurement.