The latest report from New Delhi, as reported in Bengaluru, the government is fast forming the council with India’stop-performing start-ups to boost the country’s fast-growing digital economy.
Creating more space and knowledge to help build and invest in a sound start-up, the government has taken the initiative to help the upcoming start-ups understand their longstanding roadblocks.
The dice rolled, finally!
Ride-hailing firm Ola founder Bhavish Aggarwal, ed-tech platform Byju’s founder Byju Raveendran, Infosys cofounders Nandan Nilekani and Kris Gopalakrishnan, and a number of global and home-grown venture capital investors, including Siddarth Pai, the founding partner of 3one4 Capital.
Are all expected to be part of the Start-up Advisory Council, people who were briefed on the developments told ET.
The Council will also be represented by government officials and regulators, they said.
“It was felt that there should be a structured way in which the government engages with start-ups at regular intervals. So, we’re arranging the concerned people who deal with start-ups from the relevant ministries, people from the start-up ecosystem — be it entrepreneurs, investors and thought leaders,” a senior government official told ET in case of anonymity.
Commencing before the Budgetary!
Aggarwal, Raveendran, Gopalakrishnan and Nilekani did not respond to emails till press time. Over more, Pai declined to comment.
The decision to create the council was discussed at the 2019 Global Venture Capital Summit, organised by the Department for Promotion of Industry and Internal Trade (DPIIT) and the Goa government last month, one of the people told ET.
A number of closed-door meetings were held between industry representatives and policymakers at the second edition of the two-day summit, the sources said, where the industry veterans had listed out their requirements from the lawmakers.
Over a month ago, ET reported that the alternative investment funds were set up.
ET reported last month that India’s private equity and venture capital industry had urged domestic pension funds to allocate 1% of their overall assets to alternative investment funds.
They proposed the creation of multiple start-up-focused fund-of-funds backed by the government, to channel such investments.
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The Indian Venture Capital Association (IVCA), the nodal body representing the sector suggested the idea of seeking tax breaks as incentives to create such pools of domestic capital.
The first meeting of the council is expected to take place before the upcoming Union Budget, where issues plaguing the start-up sector are likely to be tabled.
Key among these will be providing investors exemption from the capital gains tax, to promote redeployment of capital into start-ups and taxing of employee stock ownership plans (Esops) only at the time of sale rather than when the shares are vested.
Read More: 10 Startups, Bengaluru Out Scored!
India Vision 2024!
The move to create a Start-up Advisory Council is also in sync with the DPIIT’s Start-up India Vision 2024, which has proposed significant cuts in compliance time for start-ups and to ease regulatory requirements for entrepreneurs.
The vision document also envisages several measures to boost start-ups, including setting up 500 incubators and accelerators.
Further, creating better facilities for debt financing and deploying the entire corpus of Rs 10,000 crore fund-of-funds.
ET reported on December 27 that DPIIT was also in talks with the finance and corporate affairs ministries, the Sebi and the RBI over a plethora of regulatory changes covering start-ups.
“We are working on regulatory changes that would aim at easier incorporation of a company, easier compliances, reduction of tax compliance to less than one hour per month,” DPIIT secretary Guruprasad Mohapatra had told ET at the time.