Startup India Seed Fund Scheme

Context

The Ministry of Food & Public Distribution launched the Startup India Seed Fund Scheme (SISFS).

About the Scheme

• The Scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization.
• The Seed Fund Scheme also envisage for the promotion of virtual incubation for startups by enabling 300 incubators to support startups from all corners of the country.
• The scheme will create a robust startup ecosystem.
• This will impact the innovations in tier 2 and tier 3 regions of India.
• It will encourage innovators from rural areas also.
• The Startup India Seed Fund Scheme will act as a bridge between ideas and their implementation.
• SISFS will Secure seed funding, Inspire innovation, Support transformative ideas, Facilitate implementation, and Start startup revolution.
• Online portal: Under the scheme, an online portal has also been opened up, which is created by DPIIT.
• It will allow incubators to apply for funds under this.
• Execution: An Experts Advisory Committee (EAC) has also been created by DPIIT for the execution and monitoring of the Startup India Seed Fund Scheme.
• Grants: Grants of upto Rs 5 Crores shall be provided to the eligible incubators which would be selected by the EAC.
• Under the scheme Rs. 945 Crore corpus will be divided over the next 4 years to provide seed funding for eligible startups through eligible incubators across India.