The Ministry of Commerce and Industry has launched the Startup India Seed Fund Scheme on 21 January 2021 to promote new startups related to innovation and technology in the country. However, to promote self-employment in the country, schemes like Mudra Loans are already available. Let us know in this article what are the special things about this new initiative released by the Department for Promotion of Industry and Internal Trade –
Apply for Startup India Seed Fund –
Friends, let us tell you that under the Startup India Seed Fund Scheme, the Modi government has prepared a plan to spend Rs 1000 crore. First of all, this scheme will be run in a mission mode in the country from 2021 to 2025. After that, a further strategy will be prepared based on the results.
The Startup India Seed Fund Scheme, as its name honors the innovative approach of the youth, will provide it with unfettered financial support for technology and necessary resources. Which will give them a chance to prove their abilities.
This scheme of the Modi government has been launched under Startup India Mission to ensure the availability of appropriate resources, entrepreneurship consultancy, and testing facilities to new entrepreneurs. Which will give a boost to the self-sufficient campaign in the country.
The objective of the Scheme –
Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization. This would enable these startups to graduate to a level where they will be able to raise investments from angel investors or venture
capitalists, or seek loans from commercial banks or financial institutions.
Under Startup India Seed Fund Scheme, incubators shall provide physical infrastructure, testing facilities, mentorship, etc. to the selected startups. If a startup does not want to utilize physical infrastructure of the incubator, the incubator shall offer all other resources.
— Startup India (@startupindia) January 29, 2021
Special Features of Startup India Seed Fund Yojana –
This scheme will remain in force till 1 April 2025. During this, the Central Government will provide financial assistance of Rs 945 crore to promote enterprises related to new technology and innovation. Under the Startup India Seed Fund scheme, startups having good business ideas will be provided up to Rs 20 lakh. Also, up to 50 lakhs can be availed for commercialization-related equipment.
Seed Fund Scheme Eligibility Details –
Some special eligibility details regarding applications for new startups and incubators have been issued by the Department for Promotion of Industry and Internal Trade –
Eligibility Criteria for Startups
- The startup must be recognized by DPIIT.
- The establishment of the business should not be more than 2 years old.
- The startup should be fit as per the Indian markets and a particular product or service provider.
- The enterprise must be a technology user. Also, its business and distribution model must be predetermined and regulated.
- Under Startup India Seed Fund Scheme Social Impact, Waste Management, Water Management, Financial Inclusion, Education, Agriculture, Food Processing, Biotechnology, Healthcare, Energy, Mobility, Defense, Space, Railways, Oil & Gas, Textiles, etc. Enterprises associated with the sectors are included.
- Startups already getting loans under any other scheme will not get the benefit of this scheme.
- As per the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018, the stake in startups with an Indian incubator should be at least 51% to get the scheme benefits.
Eligibility Criteria for Incubators
- Incubators must be registered under one of the Societies Registration Act 1860, Indian Trusts Act 1882, Companies Act 1956, Companies Act 2013 to join the Startup India Fund Scheme.
- Applicant incubator business must be running for at least 2 years or more.
- Incubators should have a seating capacity of at least 25 persons.
- Incubators must have at least 5 startups connected at the time of application.
- Incubators should have a full-time Chief Executive Office, experienced in business development and entrepreneurship capable and responsible team.
- The incubator should be assisted by the central or state government.
To see the official guideline pdf of the Startup India Seed Fund Scheme – click here
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