Startup India Seed Fund to be operational from April 1
The Rs 945 crore Startup Indian Seed Fund Scheme will provide financial assistance to startups, and will be disbursed through selected incubators.
The Rs 945 crore Startup India Seed Fund Scheme (SISFS) will be operational from April 1, 2021, to 2025 as the government looks to boost the ecosystem, providing the crucial capital for young companies.
The scheme will be implemented by the Department for Promotion of Industry and Internal Trade (DPIIT).
In a gazette notification, the government announced that Startup India Seed Fund Scheme will provide financial assistance to startups that have been recognised by the DPIIT and incorporated not more than two years ago at the time of application. This money will be disbursed through selected incubators across India.
The Startup India Seed Fund Scheme is sector-agnostic and will have a central common application on Startup India portal for startups and incubators on an ongoing basis.
The notification also said that an Experts Advisory Committee (EAC) will be constituted by DPIIT, which will be responsible for the overall execution and monitoring of the Startup India Seed Fund Scheme.
The EAC will evaluate and select incubators for the allotment of Seed Funds, monitor progress, and take all necessary measures for efficient utilisation of funds towards the fulfilment of objectives of the scheme.
The government added that preference would be given to startups that are innovating in areas of agriculture, education, food processing, healthcare, social impact, waste management, water management, financial inclusion, biotechnology, energy, mobility, defence, space, railways, oil and gas, textiles, etc.
Earlier, on January 16, Prime Minister Narendra Modi had announced the launch of this Rs 1,000-crore 'Startup India Seed Fund' to support startups and help budding entrepreneurs pursue innovative ideas.
Speaking at the 'Prarambh: Startup India International Summit', Modi exuded confidence that the growth of startups will help in generating jobs and improving the lives of people in the region.
"In order to provide initial capital for startups, the nation is launching a Rs 1,000 crore Startup India Seed Fund. This will help in setting up new startups and promote their growth," the Prime Minister had said.
The summit marked the fifth anniversary of the Startup India initiative launched by Modi on this day in 2016. The government, Modi said, has been implementing the Fund of Fund Scheme to help startups raise equity capital.
Going forward, the government will also help startups in raising debt capital, he added.
Learn more about the Startup India Seed Fund Scheme (SISFS) here - http://bit.ly/YSSISFS
Edited by Saheli Sen Gupta