Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry has given the approval for setting up of Startup India Seed Fund Scheme (SISFS) with a Corpus of INR 945 crores for the period 2021-25. The Scheme will come into force from April 1, 2021 & DPIIT will be the implementing agency of the scheme.
- The scheme will provide funds to startups for proof of concept, prototype development, product trials, market entry & commercialization.
- The funds will be disbursed through selected Incubator facilities across India.
- During the Budget 2020-21, Union Finance Minister proposed the setting up of a National Seed Fund for development of startups & provide Credit Guarantee for startups.
i.Experts Advisory Committee (EAC) will be constituted by DPIIT for execution & monitoring of SISFS. The EAC will be led by an eminent individual, the committee will be responsible
- Evaluation and selection of Incubators for allotment of Seed Funds
- Monitoring progress
- Taking steps to ensure proper utilization of funds
- Any startup recognised by DPIIT, incorporated not more than 2 years ago
- Preference will be given to startups who are working in sectors like Social Impact, Waste Management, Water Management, Financial Inclusion, Education, Agriculture, Food Processing, Biotechnology, Healthcare, Energy, mobility, defence, space, railways, oil and gas, textiles.
- The startups should also not have received more than INR 10 Lakh of monetary support from the Central or State Government scheme (excludes prize money from competitions and grand challenges).
- Shareholding by Indian Promoters in the startup must be at least 51%.
- Startups who have already availed seed funds once will not be eligible.
Criteria for Incubators:
- It should be a legal entity
- Must have facilities to seat at least 25 individuals
- Should have at least five startups which are undergoing incubation physically.
- Must have a full-time Chief Executive Officer supported by a team.
Selected Startups will receive an amount of up to INR 20 Lakhs after successful validation of their concepts, prototype development & product trials.
- Amounts will be disbursed on anMilestone-based instalments.
- Startups would qualify for amounts of upto INR 50 Lakh through Convertible debentures or debt or debt-linked instruments that can be used for market entry, commercialisation or scaling up process.
Recent Related News:
i.On September 11, 2020 DPIIT released the 2nd Edition of ‘States on Support to Startup Ecosystems 2019’. Gujarat, Andaman & Nicobar Emerged as Best State &UT in providing Strong Ecosystem for Startups.
About Ministry of Commerce & Industry:
Union Minister – Piyush Goyal
Minister of State (MoS) – Hardeep Singh Puri, Som Parkash