Lok Sabha Question No. 45 (STARRED), answered on 2016-04-27
Subject: Start Up India Stand Up India
Ministry: MINORITY AFFAIRS
Asked by: ASADUDDIN OWAISI

## GOVERNMENT OF INDIA MINISTRY OF MINORITY AFFAIRS

## LOK SABHA STARRED QUESTION No. 45

## TO BE ANSWERED ON 27.04.2016

## Start Up India Stand Up India

## *45.  SHRI ASADUDDIN OWAISI:

Will the Minister of MINORITY AFFAIRS be pleased to state:

- (a) whether Start Up India Stand Up India Programme which guarantees loans uptoRs. 10  lakh  to  one  crore  to  SC/ST  and  women  entrepreneurs  at  lower  rates  has  been launched recently and if so, the details thereof;
- (b) whether minorities are also being extended the benefit of this scheme and if so, the details thereof and if not, the reasons therefor;
- (c) whether  the  Finance  Ministry  has  cleared  establishment  of  two  credit  guarantee funds whereby banks would not be reluctant to lend money and if so, the details thereof;
- (d) whether the National Minorities Development and Finance Corporation also proposes to be part of Start Up India Stand Up India Scheme and provides loans to minorities in the guarantee schemes on the lines to SC/ST and women; and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF MINORITY AFFAIRS (DR. NAJMA A. HEPTULLA)

- (a) to (e): A Statement is laid on the Table of the House.

Statement referred  to  in  reply  to  part  (a)  to  (e)  of  the  Lok  Sabha  Starred Question No. *45 for reply on 27.04.2016 raised by Shri AsaduddinOwaisi on 'Start Up India Stand Up India'.

(a) & (b):'Startup India' initiative of the Government of India has been launched on  16 th January,  2016  to  build  a  strong  eco-system  for  nurturing  innovation  and Startups  in  the  country.  This  initiative  aims  to  empower  Startups  to  grow  through innovation  and  design  by  supporting  various  components  of  the  startup  ecosystem. The Action plan includes the following-

## 1. Simplification and Handholding -

-  Simple Compliance Regime for startups based on Self-certification.
-  Launch of Mobile app and Portal for compliance and information exchange.
-  Startup India Hub to handhold startup during various phases of its development.
-  Legal support for and fast-tracking patent examination at reduced costs.
-  Relaxed norms of public procurement for startups.
-  Faster exit for StartUps.

## 2. Funding support and Incentives

-  Providing funding support through a Fund of Funds with a corpus of Rs.l0,000/crore.
-  Credit guarantee fund for startups.
-  Tax exemption on capital gains invested in Fund of Funds.
-  Tax exemption to startups for 3 years.

## 3. Industry-Academia Partnership and incubation

-  Organizing Startup Fests to showcase innovations and  providing collaboration Platforms.
-  Launch  of  Atal  Innovation  Mission  (AlM)  with  Self  -Employment  and  Talent Utilization (SETU) Program of NlTlAayog.
-  Harnessing private sector expertise for setting up incubators.
-  Setting  up  of  7  new  research  parks  modeled  on  the  Research  Park  at  llT Madras.
-  Launching of innovation focused programs for students.
-  Annual Incubator Grand Challenge to promote good practices among incubators.

' Stand Up India ' scheme has been launched on 5 th  April, 2016. The objective of the Stand-Up India scheme is to facilitate bank loans from Scheduled Commercial Banks (SCBs) between Rs 10 lakh and  Rs. 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise in trading, services or manufacturing.

(c): Government  of  India  has  established  two  credit  guarantee  funds  viz  Stand  up India and Mudra, details of which are as under:-

(i)  Stand  Up  India  Loans: TheGovernment  of  India  has  established  a  credit guarantee fund for loans extended under Stand Up India with a total corpus of Rs. 5000 crores in the next five years, beginning with Rs. 500 crore in 2016-17. The Fund envisages guarantee cover to the extent of 80% of the amount in default for credit facility above Rs.10 lakh and upto Rs.50 lakh, subject to a maximum of Rs.40 lakh. For credit facility  above  Rs.50  lakh  and  upto  Rs.100  lakh  -  Rs.40  lakh  Plus  75%  of amount in  default  above  Rs.50  lakh  subject  to  overall  ceiling  of  Rs.65  lakhs of  the amount in default.

(ii)  Mudra  Loans :  The  Government  of  India  has  established  the  Credit  Guarantee Fund  for  Micro  Units  (CGFMU)  with  a  corpus  of  Rs  3000  crores  for  loans  extended under the Pradhan Mantri Mudra Yojana (PMMY) is provided on portfolio basis upto 50% of the amount in default.

(d)  to  (e): National  Minorities  Development  and  Finance  Corporation  (NMDFC) already extends concessional credit of uptoRs. 30.00 lakh to notified minorities under the Term Loan scheme for economically viable ventures. Skilling/Reskilling/Upskilling of  the  target  group  is  also  undertaken  under  the  Vocational  Training  Scheme  of NMDFC  leading  to  employment  of  trainees.  The  trainees  desirous  of  starting  selfemployment ventures are given preference under the concessional credit schemes of NMDFC.  Further,  concessional  credit  uptoRs.  20.00  lakh  for  domestic  course  and uptoRs.  30.00  lakh  for  courses  abroad  is  being  extended  under  Education  Loan scheme  of  NMDFC  for  pursuing  technical  and  professional  courses  with  maximum duration of 5 years.

The schemes of NMDFC are implemented for the socio-economic development of the backward  sections  amongst  the  notified  minorities  viz.  Muslims,  Sikhs,  Christians, Buddhists, Parsis and Jains, through the State Channelising Agencies (SCAs) nominated by respective State Governments/UT Administrations.

***