Govt launches $125 million seed fund focused on startups
The government has launched a Rs 945 crore (about $125 million) Startup India Seed Fund Scheme, media reports said.
The scheme, which will be implemented from April 1, was announced by Prime Minister Narendra Modi in January.
The idea behind the scheme is to ensure adequate availability of funds, particularly to startups with good ideas in different fields, the Press Trust of India reported.
The fund would be divided over the next four years to provide seed funding to eligible businesses through eligible incubators across India.
Grants of up to Rs 5 crore shall be provided to eligible incubators selected by an expert committee, the Mint reported.
These incubators will be offered grants of up to Rs 20 lakh for validation of proof of concept, prototype development or product trials.
The government has appointed an advisory panel that will overlook the overall execution and monitoring of the scheme.
The scheme, which is expected to support around 3,600 entrepreneurs through 300 incubators, is being launched by the Department for Promotion of Industry and Internal Trade.
