Benefits Of Fund Of Funds Not Reaching Start-Ups

Benefits of fund of funds not reaching start-ups, recommendation to provide additional funds.

Of the start-ups recognized by the Department of Industry and Internal Trade Promotion (DPIIT), only 0.51 percent have benefited from the Fund of Funds.

This information is given in the report of the Parliamentary Standing Committee attached to the Ministry of Commerce and Industry.

The committee has also recommended additional allocation under the Fund of Funds scheme for start-ups. The DPIIT has been asked to talk to the Finance Ministry about this work.

According to the report, 43,186 start-ups are DPIIT accredited. To provide financial support to start-ups, a Government of India fund of Rs 10,000 crore has been set up.

Financial assistance is provided to start-ups from this fund through the Small Industrial Development Bank of India (SIDBI).

The committee expressed concern over the financial benefits of accredited start-ups of only 0.51 percent, saying that this would adversely affect the business viability of these companies.

The committee has told DPIIT that the reasons for such a small number of start-ups getting funds should be investigated.

Benefits of fund of funds: The committee also asked the Fund of Funds to take appropriate steps to the DPIIT to ensure the right amount of financial assistance to start-ups.

The committee found that 58.5 percent less allocation was made by SIDBI as compared to the requirement of funds. The committee expressed concern that start-ups need funds to recover from the impact of Corona, increase capacity and create jobs.

Only 18 percent of the start-ups registered on DPIIT, according to the Registered Report on the Gem portal, 7,929 start-ups are registered on the Government e-market (Gem), which is 18.36 percent of the total DPIIT recognized start-ups.

The committee expressed surprise that despite the huge opportunity of selling on the government portal, the reasons for the registration of such a small number of portals should be ascertained.

The committee has asked start-ups to encourage them to register on the Gem portal.

Gold Price Today: Gold price in futures market, the silver price also goes up, know what has become the rate.

The futures prices of gold and silver saw a sharp trend on Thursday. On the Multi Commodity Exchange (MCX) at 10:38 am in April 2021, the price of delivery gold was trending at Rs 45,220 per 10 gram, with an increase of Rs 380 i.e. 0.85 percent.

On Wednesday, the price of gold for the April contract was Rs 44,840 per 10 grams. Similarly, in June 2021, the rate of contract gold was down by Rs 379, which was 0.84 percent, at Rs 45,585 per 10 grams.

In the previous session, the price of gold in the June contract was Rs 45,206 per 10 grams.