The Cabinet approved the setting up of a Rs.10,000 crore fund to support start-ups in becoming full fledged business entities.
The fund is expected to generate employment for 18 lakh persons.
The approval will pave the way for setting up “Fund of Funds for Startups” at the Small Industries Development Bank of India for contributions to various Alternative Investment Funds registered with the Securities and Exchange Board of India, according to an official statement. This is in line with the Start-up India Action Plan of the government unveiled this year .
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The Rs.10,000 crore-corpus will be built up over the 14th and 15th Finance Commission cycles subject to progress of the scheme and availability of funds, it said. Already Rs.500 crore has been provided.