Start up India Seed Fund Scheme to be launched with corpus of Rs 945 Cr
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New Delhi, Jan 30: The Union govt has announced for the launch of Start up India Seed Fund Scheme (SISFS) on Jan 29, 2021. The scheme will be launched with a corpus of Rs 945 crore, with the aim of providing financial assistance to start-ups for the product trials, market-entry, proof of concept, prototype development and commercialization. The funds under the 'Start up India Seed Fund Scheme' will be disbursed through the selected incubators across the country.
The scheme will be in mission mode for the year 2021-25. The official notification on the launch of SISFS was released by the Department for Promotion of Industry and Internal Trade (DPIIT). The overall execution and monitoring of the SISFS will be done by the DPIIT. The DPIIT will form an Experts Advisory Committee (EAC) to look after the same. The Expert Advisory Committee (EAC) will evaluate and select the incubators in order to allot the Seed Funds, take all required measures for efficient utilization of funds and to monitor the progress, where the seed support will be provided only once to any start-up.
The funds under SISFS can be availed by start ups that are incorporated not before the duration of 2 years ago, at the time of application. The eligible start ups will be recognized by the DPIIT. The start up seeking funds under the scheme must have a suitable and commercially viable business idea. It should use technology in its core product or service. The notification highlights that, preference will be given to start-ups that create innovative solutions in sectors such as waste management, social impact, healthcare, textiles, agriculture, water management, defence, food processing, education, energy, railways, financial inclusion, mobility, space, oil, gas and biotechnology.
The Start ups should not have received monetary support of more than Rs 10 lakh under any other central or state government scheme. It should have at least 51 per cent shareholding by Indian promoters at the time of application to the incubators in accordance with the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.
In regard of the eligibility of the incubators, according to the eligibility conditions, the incubators must be legal entities. It must be operational for at least 2 years on the date of application to the scheme. Further, it should have at least five start ups undergoing incubation physically and should have the seating capacity for at least 25 individuals. They should have a full-time CEO and a capable team.
