Startup India Seed Fund Scheme

Why is in news? 656 Startups Supported by Approved Incubators under Startup India Seed Fund Scheme (SISFS)

The Startup India initiative of the Government of India envisages building a robust Start-up ecosystem in the country for nurturing innovation and providing opportunities to budding entrepreneurs.

Startup India Seed Fund Scheme (SISFS) is one such scheme provides financial assistance to early-stage startups.

It has been created by the Department for Promotion of Industry and Internal Trade (DPIIT).

It aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialisation.

A sum of Rs. 945 crore has been allocated for the fund over the next four years for providing seed funding to eligible startups. Grants of up to Rs. 5 crore shall be provided to eligible incubators selected by an expert committee.

Significance:

The fund is expected to benefit around 3,600 startups through 300 incubators and boost the startup ecosystem, particularly in tier-2 and 3 cities.

It will secure seed funding, inspire innovation, support transformative ideas, facilitate implementation and start a startup revolution.

It will create a robust startup ecosystem, particularly in non-metros, which are often deprived of adequate funding.

It will allow incubators to apply for funds through an online portal created by the DPIIT.

An Experts Advisory Committee (EAC) has been created by DPIIT to execute and monitor the scheme.

It will evaluate and select incubators for allotment of Seed Funds, monitor progress, and take all necessary measures for efficient utilization of funds towards fulfilment of objectives of the scheme.

Other initiatives for Promoting Startups are Atmanirbhar Bharat, Make in India, Start-Up India Programme, Start-up India Digital Platform, Atal Innovation Mission (AIM), Project Chunauti, National Initiative for Developing and Harnessing Innovations (NIDHI), etc.