The Department of Industrial Policy and Promotion (DIPP) is working with the tax department and regulators to ease the rules and laws for startups to support budding entrepreneurs, a top government official said Wednesday.
"We are easing regulations for startups. We are also working with tax department and regulators, and we have been able to simplify 24 regulations so far," DIPP Secretary Ramesh Abhishek said here.
He said that easing the processes and norms are the biggest agenda for the department so that it supports growth of startups.
The secretary also said that to increase availability of funds for startups, the department has asked Small Industries Development Bank of India (SIDBI) to commit Rs 3,300 crore by March next year.
"SIDBI has already taken equity in 30 alternate investment funds (AIFs), committing more than Rs 1,500 crore and those funds have raised Rs 7,500 crore," he said.
The government has established Rs 10,000 crore Fund of Funds for startups (FFS) to meet their needs. SIDBI is the operating agency for the FFS.
As per the guidelines, the FFS contributes to the corpus of Sebi-registered AIFs. These AIFs in-turn have to invest at least twice the contribution under FFS in startups.
Under the 'Startup India Action Plan', the government announced incentives, including tax holiday and inspector raj-free regime, besides capital gains tax exemption.
Talking about patent facilitation programme for budding entrepreneurs, Abhishek said that so far patents were granted to 41 startups with an average time of one year.
Normally, it takes about 5-7 years for grant of a patent.
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