DIPP secretary Ramesh Abhishek said that the present regulatory framework is not favourable for external commercial borrowings.
The industry department has identified roadblocks faced by startups and is in talks with other departments to resolve the issues to provide favourable policies for budding entrepreneurs. "We have identified a number of problems of the startups," Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek said on Thursday.
Elaborating on roadblocks, he said that for external commercial borrowings, the present regulatory framework is not favourable and there are many conditions. The secretary said that DIPP has taken up the matter and they "have done a serious meeting" on the issue. "ESOPs to promoters and independent directors are not allowed. We have been told that it is an important subject and startups need that ... this is a good incentive, so we are working on these," he said further.
Favourable tax regime for Intellectual Property Rights is also one of the issues which is on the radar of the DIPP, he said, adding on this "we are working with various ministries". Speaking at a function organised by industry body Federation of Indian Chambers of Commerce and Industry (Ficci), he said that the DIPP is working on all the 19-action points announced in the Startup India initiative.
On the Fund of Funds, the official said that the ministry is trying to fast forward that and "we are in the middle of discussion on how this can be expedited". The secretary said that the DIPP will soon approach the Cabinet on the credit guarantee scheme of Rs 2,000 crore.
Speaking at the event, Commerce and Industry Minister Nirmala Sitharaman exhorted women to get into the startups as their number is less. She also sought views of young entrepreneurs to further strengthen the ecosystem for startups. "We are here as a facilitator and not regulator," she said.
The minister also said that huge opportunities are there for startups in the project exports as it would help them in accessing markets abroad and becoming a component in a large project.
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