The ministry of commerce and industry will allot the majority of its second Rs 10,000 crore Fund of Funds Scheme (FFS) for startups to power sectors such as new-age technology, artificial intelligence, and machine building, news agency PTI said quoting an official.
"We are going to dedicate a lot of this Rs 10,000 crore fund of funds largely for the new age tech, AI, and machine building," PTI quoted the official.
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Notably, the central government announced a new FFS with Rs 10,000 crore in the Budget. Moreover, a similar scheme was launched in 2016, as well.
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The 2016 scheme was operated by SIDBI, and it aimed to boost venture capital investments in startups by providing funds to SEBI-registered Alternative Investment Funds (AIFs), which were to invest in startups. According to the report, SIDBI will be managing the second scheme also.
Startup India initiative was launched by the government of India on January 16, 2016. With this, the government aimed to build a strong ecosystem of the country for nurturing innovation and promoting startups.
According to the government's eligibility conditions, entities are recognised as 'startups' under the Startup India initiative by the department. As of now, more than 1.50 lakh entities have been recognised as startups across more than 55 industries.
Moreover, these startups are eligible for tax and non-tax incentives, according to the Startup India action plan.