Key Areas of Review
· The committee’s mandate includes a comprehensive examination of several critical areas:
· Financial Grants: Assessment of the distribution and allocation of grants to startups within and outside the state.
· Private Institutions: Evaluation of funding provided to private institutions designated as incubators.
· Project Management: Review of the performance and output of project management consultants.
· Contributions and Utilization: Analysis of contributions from NPS and EPF by project officials and the use of office space by multinational corporations (MNCs).
In-Depth Examination of Startup Odisha’s Operations
The Mohan Majhi administration has established a three-member committee tasked with evaluating various aspects of Startup Odisha. The committee, chaired by the Director of Industries, includes the Additional Secretary/Joint Secretary from the Finance Department and the Additional Secretary/Joint Secretary from the Public Enterprises Department.
The committee’s responsibilities encompass a thorough review of several critical areas. These include the allocation and distribution of financial grants to startups both within and beyond the state, as well as funding given to private institutions that act as incubators. Additionally, the committee will assess the performance of project management consultants, contributions of NPS and EPF by project officials, and the utilization of office space by multinational corporations (MNCs).
Recent Developments
The committee is expected to deliver its report by August 21. This review comes in response to recent concerns about the management of Startup Odisha. In July, MSME Minister Gokulananda Mallik’s visit to O-Hub, the state’s primary centralized incubation center, revealed allegations of irregularities and negligence. As a result, the government-imposed limits on the financial authority of Startup Odisha officials. The executive chairman’s financial power is now capped at Rs 1 crore, while the board of directors is limited to Rs 10 crore.
Despite these restrictions, the MSME Department, as the sole shareholder of Startup Odisha, retains full authority to approve and manage all types of expenditures, including schematic, non-schematic, recurring, non-recurring, revenue, and capital expenses.
Future of Startup Odisha
Startup Odisha was launched in 2016 by the Naveen Patnaik-led BJD government with the goal of supporting 5,000 startups in the state by 2025. The formation of this committee represents a significant step in ensuring the effective and transparent functioning of the initiative as it continues to grow and evolve.
(With inputs from agencies)
