Guidelines for phase II of Fund of Funds scheme for startups at advanced stage: Goyal

New Delhi, Jan 16 (PTI) Commerce and Industry Minister Piyush Goyal on Friday said the formulation of guidelines for the operationalisation of the second phase of the Fund of Funds scheme for startups is at an advanced stage.

To strengthen the startup ecosystem, the government constituted a Fund of Funds worth Rs 10,000 crore in 2016 to provide seed capital and enable startups to take calculated risks.

Following the successful utilisation of the first tranche, a second tranche of Rs 10,000 crore was sanctioned in the last Union Budget.

He said the government aims to deploy a significant portion of this fund in deep tech and high-tech sectors such as defence, space, and aerospace to further encourage youth entrepreneurship.

"Draft guidelines are ready... it's at an advanced stage... it will be operationalised soon," Goyal told reporters here.

He said the guidelines will require cabinet nod.

On January 16, the government is celebrating the 10th anniversary of the Startup India initiative. So far over 2 lakh entities are recognised as startups by the Department for Promotion of Industry and Internal Trade (DPIIT).

These entities are eligible for incentives under the startup India action plan. PTI RR TRB