MoI and MoF at odds on overseeing Startup Fund
KATHMANDU:
Even before anything concrete could materialise from the Startup Fund announced by the government in the fiscal budget 2014-15, it has been hit by an unforeseen setback — whether the Ministry of Industry (MoI) or the Ministry of Finance (MoF) will take its ownership.
Finance ministry officials claim that since it envisaged the programme and forwarded the recommendation for the budget, it should be given the authority to oversee the programme.
MoI officials, on the other hand, are also seeking to lay their claim on the programme since the MoF has earmarked the budget for the fund under the title of MoI.
The fiscal budget has earmarked a budget of Rs 500 million for the Startup Fund as seed money to provide financing facility for innovative business proposals and invited the private sector and non-resident Nepalis (NRNs) to contribute to the fund. The budget earmarked for the programme, however, is entitled under MoI.
The dispute between MoI and MoF surfaced when MoI recently sent a letter to MoF seeking consent to merge the Startup Fund and Technology Fund before preparing the operating guidelines for the two.
On this, MoF refused to give its consent saying it would prepare the operating guidelines for the Startup Fund.
“It’s true that we didn’t envision the programme, but when MoF allocated the budget for the Startup Fund from the budget of MoI, it’s our programme — as simple as that,” said Yam Kumari Khatiwada, joint secretary at the MoI. “So, we are fully authorised to prepare the guidelines for the fund.”
She further informed that MoI had sought consent of MoF to merge the Startup Fund and Technology Fund (which is under MoI) since both were set up with similar objectives. The Technology Fund has a budget of Rs 10 million.
MoF, however, is adamant that the objectives of the Startup Fund and Technology Fund vary and hence both of them will be operated separately.
“The objective of the Startup Fund is to support innovative entrepreneurs,” Baikuntha Aryal, chief of the Budget Division under MoF said, adding, “Such programmes will be supportive in expanding entrepreneurship across the country in the long run.”
Complicating the matter further, MoI has clearly said that if MoF prepares the guidelines for the Startup Fund, MoI will not be able to take ownership of the programme. The fund is to be administered by Nepal Rastra Bank and venture capital to be provided to innovative entrepreneurs on the recommendation of MoI. Hence, MoI will be responsible for screening the proposals.
“But if MoF prepares the guidelines for the Startup Fund, how can we take ownership on the programme?” Khatiwada questioned. According to her, MoF itself should oversee the fund if it prepares the guidelines.
Aryal believes the situation is being blown out of proportion. “The concerned ministries have not held discussions on who will prepare the guideline yet, so there is no need to fret about ownership just yet,” he said, reiterating that MoI will oversee the programme.
Source: THT
