Jharkhand Govt.gears up for a corpus of Rs 100 crore for start-ups
By Abha Manakatala - Thu Apr 28, 6:59 am
A good news in Jharkhand is all for the start-ups.It is here where the state government is planning to create Rs 100 crore venture fund for them.This project is slated to be launched by the state Industry Department soon.
“We are trying to get it launched by May 15,2016”,says Director(Industry)K.Ravi Kumar.
As it is,the start-up,an entrepreneurial venture or a new business in the form of a company,a partnership or temporary organization designed to search for a repeatable and scalable business model,always confronted a problem of fund not made available by the bank and financial institutions.
To overcome it,the plan is to provide fund to start-ups without any security deposit,says Kumar.
Inorder to set up the fund provider,the Union government is going to contribute Rs 60 crore while the remaining Rs 40 crore will be contributed by banks, and other government and private institutions.”Instead of security,the venure fund will demand equity participations in the business venture.
“We have also a plan to set up five incubation centres”,says Kumar.
Kumar points out that the state government is keen to help and encourage women entrepreneurship.To do so,the state is planning special relaxations by setting all bank branches a target of funding at least two entrepreneurs without security deposit every year,adds Director(Industry).
In January this year,Prime Minister Narendra Modi had alunched a $1.5 Billion fund and a sting of tax breaks for both the companies and their investors.As a result,Uttar Pradesh Government proposed Rs 100 crore corpus followed by Orissa Government deploying a VC fund of Rs 100 crore for the start-ups.
“Now,Jharkhand Government joins the upward moving scheme launched by the PM Modi.