Guidelines for advanced startups in phase II of the Fund of Funds scheme: Minister of Commerce Goyal Piyush

Commerce and Industry Minister Piyush Goyal on Friday said that the formulation of guidelines for operationalising the second phase of the government’s Fund of Funds scheme for startups is at an advanced stage and is expected to be rolled out soon.

To bolster the startup ecosystem, the government had set up a Rs 10,000-crore Fund of Funds in 2016 to provide seed capital and help startups take calculated risks. Following the successful utilisation of the first tranche, the Union Budget for the current fiscal sanctioned a second tranche of Rs 10,000 crore.

“The draft guidelines are ready and the process is at an advanced stage. It will be operationalised soon,” Goyal told reporters, adding that the guidelines would require Cabinet approval.

The minister said a significant portion of the second tranche would be deployed in deep-tech and high-tech sectors such as defence, space and aerospace, with the aim of further promoting youth entrepreneurship.

The announcement comes ahead of the 10th anniversary of the Startup India initiative, which the government will mark on January 16. According to Goyal, more than 2 lakh entities have so far been recognised as startups by the Department for Promotion of Industry and Internal Trade (DPIIT). These recognised startups are eligible for various incentives under the Startup India action plan.