Assam govt to launch 'Angel Fund' to promote start-ups

The Assam government will soon launch an Angel Fund to help first generation entrepreneurs of the state to start business start-ups.

However, the eligibility criteria - that only those "individual, skilled youth and prospective entrepreneurs who have undergone skill development training in the department of industries and commerce or any other government department would be eligible to avail loan from the Angel Fund" - makes it appear as just another addition to the list of myriads of government sponsored employment generation schemes, called Aasoni in Assam, which remain mired in red-tape.

"The Angel Fund scheme is designed to give gainful employment to the first generation entrepreneurs of Assam for overcoming the problems of shortage of start up capital in terms of equity to establish their new ventures or expanding existing ventures," said Pradyut Bordoloi, Assam's industry minister.

Assam's chief minister had announced to launch an Angel Fund in his 2013 budget speech.The department of industries and commerce of Assam has initiated the scheme for implementation throughout the state and has partnered Assam Gramin Vikas Bank (AGVB) as the financial institution, informed Bordoloi.

He said for the current fiscal, which is due to end on March 31, the state government has earmarked Rs 12 crore for the Angel Fund. The minister also said the state government would request corporate houses, including Oil India Ltd (OIL), ONGC, Tata, Reliance, etc. to donate money for the Angel Fund. "If you remember top industrialists of India, including Ratan Tata, had come to Guwahati in 2010 and all pledged to help Assam develop industrially. Now we will request them to come and donate generously to this Angel Fund and help entrepreneurship grow in the state," said Bordoloi. No co-lateral would be required to get funding from the Angel Fund. The maximum project cost under this scheme would be Rs. 10 lakh with maximum of 80 per cent on loan amount or Rs. 5 lakh whichever is less. Loan would be given to "all small bankable employment generation projects" and the interest rate would be just 5 per cent per annum. No interest would be charged during the moratorium period subject to maximum 10 months.