Govt asks top 50 cos to fund incubators as CSR spend

0
107

NEW DELHI: The government has asked the country’s top 50 companies to fund incubators as part of their corporate social responsibility (CSR) spend, a move meant to strengthen the startup ecosystem.

Large companies have to allocate 2% of their profits towards CSR but have competing demands – from building toilets to funding education. In a letter to companies, industrial policy and promotion secretary Ramesh Abhishek has added funding existing incubators in government-recognised institutions or setting up new ones to the list, said sources. “It will help upgrade the existing ones and create linkages for new companies that entrepreneurs are setting up,” said an official.

The lack of incubation facilities has been identified as a key gap in the startup ecosystem which help in providing mentorship support apart from access to networks and markets.

The government had planned to set up 35 new incubators in existing institutions, with Centre and states chipping in with 80% of the funding, while the rest coming from the private sector. An equal number is to come up in the private sector with the Centre giving 50% grant.

The government has listed 68 incubators across the country and has also asked for applications for registration of new ones.

The move comes ahead of a meeting that has been convened by the Centre on Saturday where states such as Karnataka, Gujarat, Rajasthan, Telangana and Kerala, which have put in place startup policies, have been asked to share their experience with other states. Similarly, angel investors and venture capital funds have asked to address the funding concerns, while central government ministries would list the steps on implementation of the startup action plan that was finalised by Prime Minister Narendra Modi earlier this year.

Times of India, 21 July 2016

Comments

comments

SHARE
Previous articleGurgaon gets its first water ATM; all thanks to Maruti Suzuki
Next articleSony India wins CSR Excellence Awards 2016 For Promoting Rural Development and Education
India CSR Network
India CSR Network is India's biggest and most trusted news portal in the domain of CSR & Sustainability. India CSR welcomes stories, statements, updates, reports on issues that interest you. Feedback, comments will make it more purposeful and resourceful. It is designed and maintained by India CSR Group. Contents are non-fiction. Though all efforts have been made to verify the accuracy, the same should not be construed as a statement of law or used for any legal purposes. In case of any ambiguity or doubts, readers are advised to verify with the source(s). Statement, articles, views and contributions can be sent to editor@indiacsr.in