Are we really serious ?

Economic Times ( 14 March 2017 ) carries following news :

“ Start-ups may get Rs 5 crore Boost “

DIPP’s Credit Scheme for New Ventures

According to the scheme, the loan will be provided without any collateral

Govt to guarantee corpus of fund

Scheme to help flow of venture debt from banks

To give 80 % risk cover for collateral-free credit

Feedback taken from Start-ups , VCs, Angel Investors

Start ups must meet the criteria defined for them by the department to access any benefit announced in the START UP INDIA ACTION PLAN last year , including loans under the Credit Guarantee Scheme

No doubt , you have read the " CRITERIA of a START UP " in the " Start Up Action Plan Document "

For the benefit of the readers , I have tried to list these  below :

*   Is yours a Private Ltd Co / LLP / Partnership  ?...........................................  Yes  /  No

*   Is your Company more than 5 years old ?....................................................Yes  /  No

*   Is your Start Up formed by splitting an existing business ?............................ Yes  /  No

*   In last 5 yrs, has your turnover exceeded Rs 25 Crores ?.............................  Yes  /  No

*   Is your product/service " DIFFERENTIATED "  ?............................................ Yes  /  No

*   Is your product / service " COMMERCIAL "  ?............................................... Yes  /  No

*  Is your product / service " INNOVATIVE "  ?................................................  Yes  /  No

*  Is your product / service driven by ,

    " TECHNOLOGY  / INTELLECTUAL PROPERTY "  ? ............................................Yes /  No

*  Is your product/service ,

   " NEW / SIGNIFICANTLY IMPROVED "  version "  ?.................... ...................... Yes / No

  

*  Does your product/service add " VALUE " to customers  ?................................ Yes / No

*  Does your product/service add " VALUE " to " WORKFLOW " ?.........................   Yes / No

*  Have you got CERTIFICATION  from Inter-Ministerial Board ?................................  Yes /  No

*  Have you got RECOMMENDATION from Incubator in Post Grad Indian College ?....... Yes / No

After a passage of two years , of the 200 Start Ups which applied for the tax exemption , only 10 start ups have qualified !

No prize for guessing how many will manage to get that loan of Rs 5 crore !

Government has provided Rs 500 crore per year – to help out 100 start ups ( @ Rs 5 cr each )

With the prescribed CRITERIA , only those 10 Start Ups will qualify to get the loans !

I wonder if we are really serious about this Start Up initiative

During his forthcoming visit to Israel , Shri Narendra Modiji , will find out that , in 2016 alone , Israeli Start Ups received VC funding to the tune of $ 4.8 billion ( approx. Rs 33,000 Cr )

In his VICTORY ACCEPTANCE SPEECH, two days back , Shri Modiji spoke of the birth of NEW INDIA

“ NEW INDIA “ can learn a lesson or two from :

 Spirit of  Israel 

{  https://myblogepage.blogspot.com/2017/02/spirit-of-israel.html  }

15  March  2017

www.hemenparekh.in / blogs