Ditch
Historical Baggage !
In Aug 2015, SIDBI launched a Rs 2000 Cr " Fund of
Funds ", to support Venture Capital Funds
By now, proposals from 24 VC Funds for an aggregate
amount of Rs 930 Cr have been cleared
A report in Economic Times ( 23 Dec 2015 ) quotes Shri Mohandas Pai :
" If Rs 10,000 Cr is given as seed capital, it can
enable at least 30,000-35,000 Start Ups with the multiplier effect in the next
5 years, with a total impact of Rs 60,000-70,000 Cr on the economy "
Now , what can Rs 20,000 Cr manage to do ?
Simple but compelling arithmetic !
If Mr Pai was
our Finance Minister , he would :
* Sell of 53 loss-making PSUs ( or at least
close them down )
* Save Rs 20,000 Cr of losses these PSUs
have been making , year after year
* Invest this Rs 20,000 Cr in " Fund
of Funds "
* Help create 60,000-70,000 new Start Ups
* Add 700,000 new jobs ( @ 10 jobs per
Start Up ? )
* Boost economy by Rs 140,000 Cr ( Capital
Output Ratio of 1 : 7 )
But , if we are really keen to help create millions of
Start Ups to raise India's GDP from Rs 2 Trillion to Rs 10 Trillion in the next
10 years, then Rs 20,000 Cr just won't suffice !
We would need Rs 20 Lakh*Crores ( 100 times more )
Not possible for Union Government to raise that kind of
money - either by borrowing or by raising taxes
But not at all difficult for 3 crore tax payers , if we
* Abolish Personal Income Tax
* Introduce Black Money Investment SPVs
Read following blogs ( sent to all Ministers / Chief
Ministers ) at www.hemenparekh.in,
* A New Economic Order / Start Up Act - 2015
* Create Wealth to Create Jobs
* Agenda for Reforms
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hemen parekh
25 Dec 2015
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