Govt launches Startup India Seed Fund Scheme to support the domestic entrepreneurs

New Delhi, April 20: Union Minister for Commerce and Industry, Piyush Goyal launched the Startup India Seed Fund Scheme (SISFS), saying that this would support the domestic entrepreneurs. The scheme has been approved for a period of four years, starting 2021-22.

 

It should be noted that the Startup India Seed Fund scheme was announced by Prime Minister Narendra Modi in January. This scheme will provide financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization.

 

According to the ministry, a sum of Rs 945 crore will be provided for seed funding to eligible startups through incubators over the next four years. The scheme is expected to support about 3,600 startups. Under the scheme, startups shall be offered grants of up to Rs 20 lakh for validation of proof of concept, prototype development, or product trials.

 

 

 

While launching the scheme Goyal said that this Scheme will create a robust startup ecosystem, particularly in Tier 2 and Tier 3 towns of India, which are often deprived of adequate funding. He especially encourages innovators from rural areas to come forward and benefit from this scheme.

 

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DPIIT has created an online portal for the scheme, which will allow incubators to apply for funds under it. Experts Advisory Committee (EAC) will execute and monitor the Startup India Seed Fund Scheme. Grants of up to Rs 5 Crores shall be provided to the eligible incubators selected by the EAC. The selected incubators shall provide grants of up to Rs 20 lakhs for validation of Proof of Concept, or prototype development, or product trials to startups.

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