Boost for startups: DIPP proposes Rs 2000 cr credit guarantee scheme for entrepreneurs

New Delhi: The commerce and industry ministry on Monday said it has proposed a Rs 2,000 crore credit guarantee scheme for startups to help them access funds.

For the scheme, a corpus contribution of “Rs 2,000 crore is proposed keeping in mind the challenges faced by startups in accessing funds,” Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.

The proposed scheme, she said, will provide credit guarantee of up to Rs 500 lakh per case inclusive of term loan, working capital or any other instrument of assistance extended by member lending institutions to finance an eligible startup recognized by the Department of Industrial Policy and Promotion (DIPP).

Replying to a separate question on tobacco, she said to address the concerns of farmers, the Tobacco Board coordinated with ITC Ltd and other trade members to procure medium and low grades of the commodity at a remunerative price.

“The companies have responded positively and the volumes are picking up.

“Out of the total estimated production of 104 million kg in the current season, as on July 6, a quantity of 64.51 million kg was marketed and the average price of Rs 136.94 per kg which is higher by Rs 14 per kg for the corresponding volume marketed during the last year,” she added.