To boost innovation, govt to set up Rs. 5,000cr plan
In a bid to boost innovation, the government will soon be setting up Rs. 5,000 crore fund to help entrepreneurs to see their ideas become a reality.delhi Updated: Oct 31, 2012 23:30 IST
In a bid to boost innovation, the government will soon be setting up Rs. 5,000 crore fund to help entrepreneurs to see their ideas become a reality.
The department of science and technology will soon be seeking finance ministry approval to set up Indian Opportunities Venture Fund to provide initial seed money to innovators to start companies having potential to take innovation to the market.
India provides only about Rs. 1,200 per year for taking innovations to the market whereas United States gives Rs. 29,000 crore and China Rs. 3,000 crore annually. Even smaller European countries provide more for entrepreneurs than India.
Through the new fund the government envisages to start new public private partnerships with young bright minds, those can provide jobs and attract foreign investment.
"The sector has potential to attract annual investment of Rs. 14,000 crore every year and therefore the government help is required for the kick start," a senior government official said.
The money is likely to be provided under the National Entrepreneurial Mission to be headed by Prime Minister and having a national level steering committee under the department to coordinate with other stakeholder ministries.
According to officials, the job of the mission would be to create appropriate measurements, methodologies and systems to track performance across various industries to help entrepreneurs to start business in new sectors.
The mission would also take up the government target to increase the number of incubators --- hubs for innovation --- from present 120 to about 1,000 by 2020.
"Most of the hubs are in the educational institutions having poor linkage with the industry," an official said.
He added the new incubators would have definite linkage with the industry to ensure that the ideas reach market.
Sasha Mirchandani, who started India's first angel investment group Mumbai Angel Network, said funding to take make ideas a reality is difficult and the government help would provide fillip to the sector.
"There is no dearth of talent. We just need to provide them right direction," he told HT.
A department's senior official the government is also looking at how the entrepreneurial mission could be linked with National Skill Development Mission headed by the Prime Minister.