Feb 3, 2021
Startup India Seed Fund gets Rs. 126 crore from the government for the financial year 2021-22. This fund aims to provide financial assistance to startups especially in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defense, space, railways, oil and gas, and textiles.
The Startup India Seed Fund Scheme, which was notified last week will look to back DPIIT-registered startups that are less than two years old at the time of their application.
The fund, announced by PM Modi last month, will become effective on April 1 and is looking to spend Rs. 945 crore over a period of five years. It will back suitable startups and incubators that will be assessed by an Experts Advisory Committee (EAC) constituted by the Department for Promotion of Industry and Internal Trade (DPIIT).
“We are trying to create a startup system which is based on the mantra — of the youth, by the youth, for the youth,” Modi had said in his address at ‘Prarambh: Startup India International Summit’ last month. “The aim for the next five years should be that our startups become global giants.Under the scheme, the government will provide grants of up to Rs. 5 crores to eligible incubators in three or more installments, based on the milestones they are able to achieve.
Incubators assisted by the state or central government that is at least two years old will be eligible, while those not supported by the government will need to be at least three years old.