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Probe On Startup Odisha

Bhubnaeswar: The State government today formed a three-member committee headed by the Director of Industries to inquire into various aspects of Startup Odisha.

Additional Secretary/ Joint Secretary, Finance Department and Additional Secretary/ Joint Secretary, Public Enterprises Department have been appointed as two other members of the probe panel, according to a notification issued by the MSME Department.

The Committee will look into financial grant of Startups within and outside the State, fund distribution/grant to different private institutions stating them as incubator, output of project management consultants, contribution of NPS and EPF of project officials and use of office space by MNCs.

The Committee has been asked to submit the report by August 21, this year.

Last month, the State government has restricted the financial powers of the Startup Odisha authorities, following a field visit of MSME Minister Gokulananda Mallik to the O-Hub, the state’s maiden centralised incubation centre, following allegations of irregularities and negligence to Odisha startups.

The financial power of executive chairman has been limited up to Rs 1 crore and that of board of directors up to Rs 10 crore. However, the MSME Department (100 percent shareholder of Startup Odisha) has the full power for sanctioning and incurring expenditure of any type, including schematic, non-schematic, recurring, non-recurring, revenue and capital, etc.

The MSME Department is now taking the decision for the engagement of consultants, hiring or outsourcing of services, construction works, procurement of goods and services, undertaking new projects etc.