Govt sets up mechanism to support start-up businesses

New Delhi: A mechanism known as SETU to support all aspects of start-up businesses and other self- employment activities has been set up by the government, Lok Sabha was informed Wednesday.

Union Minister for Skill Development Rajiv Pratap Rudy said the National Policy for Skill Development and Entrepreneurs envisaged fostering entrepreneurship and grassroots innovation by providing support in terms of fiscal incentives, creation of grass root technology innovation hubs, legal support and market linkages.

"The government has established a mechanism to be known as SETU (Self-Employment and Talent Utilisation) under NITI Aayog to support all aspects of start-up businesses and other self employment activities, particularly in technology-driven areas," he said during Question Hour.

Rudy said government has also launched in August 2015 India Aspiration Fund (IAF) under the Small Industries Development Bank of India with a capital of Rs 2,000 crore to give a boost to start-up ecosystem in the country. "The objective of the IAF is to catalyse tens of thousands of crores of equity investment into start-ups and MSMEs creating employment of lakhs of persons, mostly educated youth, over the next four to five years," he said.

The Minister said the Department of Electronics and Information Technology is implementing a scheme entitled 'Technology Incubation and Development of Entrepreneurs' (TIDE) under which 147 start-ups have been supported at 25 TIDE centres established in premier institutes like IITs, NITs, IIMs etc.

Rudy said Prime Minister Narendra Modi in his Independence Day address had announced a 'Start-Up India' initiative in which each of the 1.25 lakh bank branches would provide funding support to at least one Dalit or Adivasi entrepreneur and at least one woman entrepreneur.