The government has approved the Startup India Seed Fund Scheme (SISFS) with a corpus of Rs 945 crore to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization.
The funds will be disbursed through selected incubators across India from 2021-25, the Department for Promotion of Industry and Internal Trade (DPIIT) said in a notification.
“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 department said.
To be chaired by an individual of eminence, the committee will evaluate and select incubators for allotment of Seed Funds, monitor progress, and take all necessary measures for efficient utilization of funds.
The SISFS can be availed by a startup, recognised by DPIIT, incorporated not more than two years ago at the time of application. It must have a suitable commercially viable business idea and should use technology in its core product or service.
“Preference would be given to startups creating innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas, textiles, etc.,” the notification stated.
A National Seed Fund was announced in Budget 2020-21 to support ideation and development of early-stage startups whereas the credit guarantee scheme will enable startups to raise loans for their business purposes.
