- Prime Minister Modi approved Startup India Fund of Funds 2.0 with Rs 10,000 crore corpus
- The Fund supports deep tech, early-stage ideas, advanced manufacturing, and breakthrough tech
- FFS invests in SEBI-registered AIFs, which then invest in Indian startups via equity instruments
Prime Minister Narendra Modi on Friday approved the 'Startup India Fund of Funds 2.0' with a corpus of Rs 10,000 crore. The fund will power India's innovation ecosystem, especially in deep tech, early-stage ideas, advanced manufacturing and breakthrough technologies, the government said.
The Fund of Funds for Startups (FFS) Scheme was approved and established in 2016 with a corpus of Rs 10,000 crore, with contribution spread over the 14th and 15th Finance Commission cycle based on progress of implementation, to provide much-needed boost to the Indian startup ecosystem and enable access to domestic capital.
Under FFS, the Scheme does not directly invest in startups, instead provides capital to SEBI-registered AIFs, known as daughter funds, who in turn invest money in growing Indian startups through equity and equity-linked instruments. Small Industries Development Bank of India (SIDBI) has been given the mandate of operating this Fund through selection of suitable daughter funds and overseeing the disbursal of committed capital. AIFs supported under FFS are required to invest at least 2 times of the amount committed under FFS in startups.
The PM also signed important files relating to PM RAHAT Scheme, doubling of target of Lakhpati Didis to six crore and Agriculture Infrastructure Fund doubled to Rs 2 lakh crore.
Under the PM RAHAT scheme, accident victims will get cashless treatment of up to Rs 1.5 lakh, ensuring that no life is lost due to lack of immediate medical help.
The government has crossed the landmark of three crore Lakhpati Didis, more than a year ahead of the original March 2027 timeline. The PM has now set a new, ambitious target of six crore Lakhpati Didis by March 2029.
In a move aimed at strengthening India's entire agriculture value chain, Modi approved doubling the outlay of the Agriculture Infrastructure Fund from Rs 1 lakh crore to Rs 2 lakh crore.
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