The government will set up a startup review council to look into resolution of issues faced by entrepreneurs and their businesses, Guruprasad Mohapatra, the secretary of Department for Promotion of Industry and Internal Trade (DPIIT), told CNBC-TV18 at the Startup India Global Venture Capital Summit. He added that there is a need for a permanent body to oversee the startup ecosystem.

“Today the commerce minister had a very useful interaction with venture capital fund association and members representing both Indian venture capital funds as well as foreign venture capital funds. While they keep meeting the secretaries, keep meeting ministers, they wanted a more structured and permanent body, so honourable minister agreed to head this council which we are talking about. Very soon he will be issuing those orders. This will comprise of secretaries of the relevant departments—there are only 5-6 departments involved which is entire startup ecosystem and then there will be some regulatory bodies like the Securities and Exchange Board of India (Sebi), the Reserve Bank of India (RBI) and all, we will be talking to them and first meeting will take place in February,” he said.

“Regulatory issues pertained to certain clarification, certain concessions to be given under the direct taxes and indirect taxes — certain are clarification, certain concessions. Whenever there is a revenue implication, it has to be seen in a lot of details.

"Similarly, there are issues like certain clarifications required from Sebi, certain faster disposal required from Sebi or RBI, this is a unique platform where apart from the startup, all the regulatory bodies are present, they have been listening to them intently, they are interacting on the sidelines, so we will engage with them and see how many of those can be addressed before the budget in the timespan of next couple of months and those which need to be continuously engage thereafter,” he added.

On lending for startups, Mohapatra said: “This came on the background that the Indian banks do not invest in the venture capital area which keeps the investment low. So there is a feeling that in a priority sector lending, if a certain carve out can be given to the startup or financing in the venture capital area in the startups. This will require discussion with the relevant ministry.”

First Published:Dec 9, 2019 3:21 PM IST