Commerce and Industry Minister Piyush Goyal on Monday officially announced the Startup India seed. This fund scheme would benefit domestic entrepreneurs and their business ideas that often cannot see the light of day because of investment.
However, the scheme was announced by Prime Minister Narendra Modi in January to help startups and enable budding entrepreneurs pursue innovative ideas.
In January, at the Startup India’s international summit, ‘Prarambh’, PM Modi had declared his government is trying to “create a startup system, which is based on the mantra ‘of the youth, by the youth, for the youth,”.
“The idea behind the scheme is to ensure adequate availability of funds, particularly to startups with good ideas in different fields. I do hope that this scheme will support our domestic entrepreneurs and their business ideas that often cannot take off due to the absence of critical capital at an early stage,” Piyush Goyal announced during the launch of the scheme.
He informed that smaller towns are often denied sufficient funding and this scheme will create a powerful startup ecosystem in Tier 2 and Tier 3 regions of India.
The Rs 945 crore corpus will be allocated over the next four years for giving seed funding to eligible startups through qualifiedd incubators across India.
The government has constituted an Experts Advisory Committee(EAC) which will be responsible for the overall execution and monitoring of the scheme.
The scheme is being inaugurated by DPIIT (Department for Promotion of Industry and Internal Trade) to support this early-stage startup funding.
The online portal created by DPIIT for the scheme will allow incubators to apply for funds under it.
The selected incubators would give grants of up to Rs 20 lakh for validation of Proof of Concept, or model development, or product trials to startups.