Startup India Seed Fund Scheme (SISFS)

About Startup India Seed Fund Scheme (SISFS):

• It is a flagship scheme launched in April 2021 under the Startup India initiative.
• Aim: Financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization.
• It is implemented with effect from 1st April 2021 for the period of 4 years with a corpus of Rs.945 crores.
• Nodal Department: Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce & Industry.
• Funding:
  • An Experts Advisory Committee (EAC) has been created by DPIIT to execute and monitor the SISFS.
  • The EAC will select eligible incubators who will be provided grants of upto Rs 5 Crores each.
  • In turn, the selected incubators will provide startups with up to Rs 20 lakhs for validation of Proof of Concept, prototype development, and product trials to startups.
• Eligibility criteria for Startups:
  • A startup recognized by DPIIT incorporated not more than 2 years ago at the time of application.
  • The startup must have a business idea to develop a product or a service with a market fit, viable commercialization, and scope of scaling.
  • The startup should be using technology in its core product or service, or business model, or distribution model, or methodology to solve the problem being targeted.
  • Startup should not have received more than Rs 10 lakh of monetary support under any other Central or State Government scheme. 
  • Shareholding by Indian promoters in the startup should be at least 51% at the time of application to the incubator for the scheme.

 

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Q1) What is the Department for Promotion of Industry and Internal Trade (DPIIT)?

DPIIT functions under the Ministry of Commerce and Industry, Government of India. It is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector, keeping in view the national priorities and socio-economic objectives.

Source: DPIIT undertaking third-party assessment of Startup India Seed Fund scheme