Government to set up panels to sort out startups issues

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Department for Promotion of Industry and Internal Trade (DPIIT) will set up two high powered panels to look into the issues raised by the startup industry and venture capitalists for their quick redressal, its secretary said here on Saturday. At present there is no structured system of engagement with the venture capitalists. Startups have raised various issues on some RBI and Sebi circulars, On CBDT and GST clarifications, ministry of corporate affairs, pharmaceuticals sectors, with the minister.

It has been decided that initially in every two months and then in every quarter, a review Council will be set up under the chairmanship of Commerce and Industry Minister Piyush Goyal, which will comprise of secretaries of finance, Corporate Affairs, chairmen of CBDT and CBEC, RBI, Sebi, Department of Financial services, venture capital association members and startups, Guru Prasad Mohapatra, secretary of DPIIT told IANS in an interview.

The secretary further said the issues raised by the industry - both venture capitalists and startups will be examined if they would be brought pre budget or those long terms issues that can be continued.

"We will form an empowered group to deal with those issues," he said adding that the main issue is how to bring more foreign capital into the sector.

"The apex committe will be chaired by the Commerce and Industry minister. I will chair one committee. We will soon call a meeting on inter-ministerial discussion with department of revenue, department of financial services, corporate affairs ministry, health ministry, CBDT, CBIC, regulatory bodies like Sebi, RBI to examine the issues raised by the startups," the secretary told IANS.

On issues of further opening up of the sectors, Mohapatra said without divulging any particular sector that "it is our efforts to bring more sectors into the fold of 100 per cent automatic approval which are currently not in that list keeping National interest and prohibitive sectors in minds. There is also MHA guidelines for security concerns.

According to sources, these sectors could be chit funds, real estate, nidhi companies, lotteries among others. But discussion will have to weigh on security parameters also, said a source.

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