A blessing for startups in India.
As mentioned by our Prime minister Mr Narendra Modi the startups in India has the potential to change the future of our country. The government of India on 29th, January 2021 declared to disburse Rs 945 crore to seed-stage startups through selected incubators across India, starting from 1st April of this year till 2025. To encourage and support the startups. It is great news for various startup companies. This scheme will be implemented by the Department for Promotion of Industry and Internal Trade (DIIT) according to a gazette notification. Preference will be given to the startups having innovative ideas in the sectors like- education, textile, agriculture, food processing, oil and gas, railways etc.
Let’s see the eligibility criteria of this scheme:
- The startup must have such a business idea to produce a product or a service which can fit the market requirements, has feasible commercialisation and there is a scope of scaling for such product or service.
- Only those startups which use technology in developing its product or service, or in distribution model can apply for this scheme
- The startups which are recognised by DPIIT and were incorporated not more than two years ago at the time of their application for the scheme will be eligible for this scheme.
- Only those startups which have at least 51% shareholding by Indian promoters at the time when they apply for the scheme are eligible.
- Only Startups which has not received more than 10 lakh of monetary support under any other state government or central government scheme. Provided, this amount does not include prize money, subsidised working space etc.
- Any startup applying for this scheme will not receive seed support for more than once as per the notification by the government.
- The eligibility criteria for incubators include-
- It must be a be a legal entity
- It is operational for at least two years on the date of application to the scheme,
- and have the facilities to seat at least 25 individuals as well as having at least five startups undergoing incubation physically.
- The incubators should have a full-time Chief Executive Officer, supported by a proficient and team.
- An eligible startup would receive an amount of up to INR 20 lakh as a grant after validation of proof of concept, or prototype development, or product trials. This grant will be disbursed through milestone-based instalments. The startup would also be qualified for an award of up to INR 50 lakh through convertible debentures or debt or debt-linked instruments, which can be utilised for market entry, or commercialisation, or scaling up.