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.
- a) SISFS shall provide financial assistance to startups via corpus of Rs. 945 Crore that will be disbursed through selected incubators across India in 2021-25.
b)The scheme shall provide financial assistance to start-ups for the product trials, market-entry, proof of concept, prototype development and commercialization.
- c) Department for Promotion of Industry and Internal Trade (DPIIT) shall monitor the execution of the SISFS.
d)The DPIIT shall form an Experts Advisory Committee (EAC). EAC will select the incubators to allot the Seed Funds.
- e) A Grant of up to Rs. 5 (five) crore would be provided to a selected incubator in milestone-based three (or) more installments.
f)Seed Fund to an eligible start-up by the incubator shall be disbursed to an eligible start-up as follows:
(i) up to Rs. 20 Lakhs as grant for validation of Proof of Concept, or prototype development, or product trials (this will be milestone based installments);
(ii) Up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments and the Seed fund shall be utilized for the purpose it has been granted.
Notification – http://www.egazette.nic.in/WriteReadData/2021/224761.pdf