Chhavideep Singh
Source: Chatur Ideas
Startup India Seed Fund Scheme (SISFS) is early-stage funding for start-ups, an initiative which has recently been approved by the Indian government. The scheme is worth INR 945 crore which will be operational from April 1, 2021, to 2025.
The SISFS is an initiative taken by the government to boost India’s start-up economy by providing initial capital to these young start-ups which turn out to be extremely significant for their growth. The implementation body of this scheme will be the Department of Promotion of Industry and Internal Trade (DPIIT).
According to several reports, this capital funding will be disbursed to those start-ups that will be recognised by the implementing body i.e., DPIIT and the conditions to be a valid participant include that the start-up should not be more than two years old at the time of filing the application. Furthermore, incubators will play a significant role in the funding provided under this scheme as the government will disburse the capital to these start-ups through selective incubators across the country.
According to the government’s notification on the scheme, the DPIIT will constitute an Expert Advisory Committee that will be responsible for the overall execution and regulation of the Startup India Seed Fund Scheme, as mentioned in a report by YourStory.
This Expert Advisory Committee will serve its purpose by selecting incubators for the allotment and disbursement of Seed funds. This committee will be responsible for monitoring and regulating the smooth functioning of the scheme and will also proactively work towards the utilisation of these capital funds to ensure its best use by these selected start-ups.
The notification also mentioned that the government will give preference to start-ups that are offering solutions in sectors including agriculture, defence, education sector, biotechnology, railways, oil and gas, textiles industry, financial inclusion, social impact solutions, waste management, food processing, healthcare sector, mobility providers, energy sector among many others.
Recently, Prime Minister Narendra Modi spoke at the Prarambh- Start-up India International Summit where he announced the INR 1,000 crore Startup India Seed Fund to support young start-ups and give a boost to their growth with financial aid.
Prime Minister Modi also said that this fund will accelerate the growth of these budding entrepreneurs and boost the start-up ecosystem in India which will help in employment generation, improving the lives of others while still coming up with innovative ideas to make the world a better place.
These schemes are an initiative taken by the Indian government to strengthen the Indian economy and give a boost of confidence to young entrepreneurs and start-ups to develop innovative products and services in different sectors.
Furthermore, the government also mentioned eligibility criteria for start-ups and incubators in its notification. The EAC will monitor the regulation and progress under the scheme and provide grants of up to INR 5 crore in three to four instalments based on milestone achievements.