Mains Paper 2: Governance | Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
The following things are important from UPSC perspective:
Prelims Level: Particulars of the FFS
Mains level: The article shows the inability of implementing the FFS scheme, by the government. Government needs to counter the issue.
Fund-of-Funds for start-ups (FFS) is showing slow progress
- FFS was launched in line with the Start-up India Action Plan of the Government
- It is a Rs 10,000-crore Fund
- The fund under the plan has made slow progress with only about Rs 70 crore having been disbursed to start-ups until the beginning of this month
Aim of launching the fund
- The Fund was launched with aim to invest in local venture capital funds
- It has made commitments to 62 start-ups
- All these 62 start-ups were backed by Alternative Investment Funds (AIFs) where state-owned SIDBI (Small Industries Development Bank of India) acted as a limited partner
- What is an AIF: An AIF is any fund established or incorporated in India that is a privately pooled investment vehicle, which collects funds from investors(Indian or foreign) for investing it in accordance with a defined investment policy for the benefit of its investors