gfiles magazine

February 12, 2016

Bumpy road ahead!

PRIME Minister Narendra Modi has reiterated that his government doesn’t want to run and manage businesses, but act as a facilitator. If this is the case then the Start-Up India Action Plan (SIAP), with its 19 broad points encompassing capital, labour, incubation, industry-academia partnership, financial incentives, and handholding, is a non-starter. The reason: one of its lynchpin is the ‘Fund of Funds’, a corpus of Rs.10,000 crore to be set up by the government, where the state-owned Life Insurance Corporation of India (LIC) will be a co-investor, which will decide the venture funds to invest in, and whose representative(s) will sit on the boards of these venture funds.

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