Government wants LIC to support startups industry by channelling a part of their social responsibility funds towards building startups. LIC hasn’t made investment in startup firms. Investment in startups are risky and insurers want to put their money in safer options. LIC manages more than Rs15 lakh crore of assets and can emerge as a major source of funds if it decides to accept the idea.
Ramesh Abhisek, Secretary at the Departrment of Industrial Policy and Promotion(DIPP) said that the “fund of funds” that government has unveiled in the budget to support startups would generate 50,000 crore private investment in startups over a period of time. He also said that government is working to get rid of the futile regulations that choke up startup ecosytem.
Source- The Economic Times