 "An electronics plant in Amberg (Germany) is an example of a digital factory")
The STPI, which also acts as a single-window clearance facilitator for the software exporters, has been changing its focus over the past few years, after the income tax benefits came to an end in 2011 and more software companies moved to special economic zones. It has started creating incubation centres across the country, to facilitate infrastructure to IT and electronics-related startups.
"We are trying to come up with angel funding management, for which a proposal has been submitted to the government. If anything has to come up, it should be within March, 2017," said Rai. He added that STPI will discuss with various financial institutions and alternate fund managers, and has to form a Special Purpose Vehicle to start investing into start ups.
It can utilise various funds launched by the government, to bring in money into the fund and together with the private partners' fund, will invest in IT and electronics start ups. A screening committee of experts will be formed to advise on such funding activities.
With STPI getting into angel funding, the idea is to promote entrepreneurship in tier II and III cities, where the private angel funding is not reaching at present. STPI has around 29 incubation centres with over 10,000 sq ft across various parts of the country and in the rural area also. It has around 56 centres across the country at present and plans are to expand to 66 centres in future.
The funding plan would apart from India BPO, another incubation programme where it has a corpus of Rs 550 crore, which would be disbursed as viability gap funding or subsidy to the BPOs in the tier II cities. In the first round of the fund, it has around 11,000 seats funded and based on a bid, those who has the least requirement of VGF were offered money. The plans are to create 1,50,000 direct jobs through this, he added.
STPI currently has around 3000 exporting units registered under it, which together registered a Rs 3.13 lakh crore during 2015-16, as against Rs 2.19 lakh crore during the previous year. The growth is expected at around seven to 10 per cent this year. Owing to the expiry of income tax benefits for the units registered under STPI, around 2,000 units could have left from its umbrella, though there are new registration of around 100 per year, which shows that the STPI's attractiveness has not diminished, he added.
