Start-ups and incubators can apply online for support under the ₹1,000-crore Startup India Seed Fund Scheme (SISFS) which would become operational from April 1, according to Anil Agrawal, Joint Secretary at the Department of Promotion of Industry and Internal Trade (DPIIT) under the Commerce Ministry.
The Scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. Rs. 945 Crore corpus will be divided over the next 4 years for providing seed funding to eligible startups through eligible incubators across India. The scheme is expected to support about 3600 startups.
Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. This would enable these startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists, or seek loans from commercial banks or financial institutions.
The Seed Fund will be disbursed to eligible startups through eligible incubators across India.
Measures for businesses/startups including MSMEs -
- Rs 3 lakh crore Emergency Working Capital Facility for Businesses, including MSMEs.
- Rs 20,000 crore Subordinate Debt for Stressed MSMEs.
- Rs 50,000 crore Equity infusion for MSMEs through Fund of Funds.
New definition of MSME:
The definition of micro manufacturing and services unit increased to Rs. 1 crore of investment and Rs. 5 crore of turnover. The limit of small unit increased to Rs. 10 crore of investment and Rs 50 crore of turnover. Similarly, the limit of a medium unit increased to Rs 20 crore of investment and Rs. 100 crore of turnover.
The limit for medium manufacturing and service units was further increased to Rs. 50 crore of investment and Rs. 250 crore of turnover. It has also been decided that the turnover with respect to exports will not be counted in the limits of turnover for any category of MSME units whether micro, small or medium.
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