DISCLAIMER: – As we embark on this journey together, it’s essential to note that the content presented here is derived from the resources available on the STARTUP India website. However, the startup landscape is ever-evolving, and policies may undergo changes. Therefore, we encourage our readers to stay informed and verify the latest updates directly from the source.
Aspiring entrepreneurs must conduct thorough research and seek advice from industry experts before making crucial decisions. Our blog serves as a starting point, offering valuable insights into various startup schemes, but nothing can replace personalized guidance tailored to your unique situation.
INTRODUCTION: –
STARTUP INDIA INITIATIVE
The Hon’ble Prime Minister of India, Shri Narendra Modi, announced the launch of the “Startup India, Standup India” initiative on 15th August 2015. The Initiative aims to foster entrepreneurship and promote innovation by creating an ecosystem that is conducive to the growth of Startups. Further to this, an Action Plan for the Startup India Initiative was unveiled by the Hon’ble Prime Minister of India on 16 January 2016. The initiative strives to provide a long-due impetus to the entrepreneurial set up in the economic landscape of India.
It has been established globally that startups are driving the economic growth of nations, creating employment, and fostering a culture of innovation. It is therefore incumbent on the Government of India to nurture emerging talent and entrepreneurship as part of the larger goal of Atmanirbhar Bharat. The objective is to make India a nation of job creators instead of just job seekers.
The Government of India has been making efforts towards making the vision of the Startup India initiative a reality. Since the launch of the initiative in January 2016, several strategic amendments to the existing policy eco-system have been introduced.
Startup India is a flagship initiative of the Government of India, intended to catalyze startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India.
An entity shall be considered as a Startup:
- Up to a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
- Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
- Entity is working towards innovation, development, or improvement of products processes, or services, or if it is a scalable business model with a high potential of employment generation or wealth
Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.
ABOUT – COMPENDIUM OF STARTUP-SPECIFIC SCHEMES/ INITIATIVES
The Government of India through its various Central Ministries and PSU has undertaken numerous initiatives to foster innovation and develop a culture of entrepreneurial mindset. These initiatives have been both in policy form and other affiliated support to the ecosystem. The Compendium of Startup Specific schemes has been developed by Startup India, DPIIT with the following objective:
- To create a knowledge repository of Government Schemes and Policies specifically benefiting directly or indirectly the Startup Ecosystem
- To share different policies/schemes/initiatives taken by different Ministries/Departments/CPSUs regarding the Startup Ecosystem with all ministries, departments and CPSUs
- To encourage Ministries, Departments, and CPSUs to take up more policy initiatives to foster innovation and support the Startup Ecosystem of the country
Please note that the list of schemes/initiatives mentioned below is exhaustive in nature and has been collated from #startupindia
Sustainable Finance Scheme
Nodal Ministry/Department: Ministry of Finance
Key Sector Covered: Energy
Eligibility Criteria:
Renewable energy projects like solar power plants, wind energy generators, mini hydel power projects, biomass gasifier power plants, etc. for captive/ non- captive
Any potential CP investments that include waste management
Suitable assistance to OEMs that manufactures energy efficient/ cleaner production/ green machinery/ equipment. Either the OEM must bean MSME, or it has to be supplying its products to a substantial number of MSMEs
Brief: The scheme develops the entire value chain of energy efficiency (EE)/ cleaner production (CP) and sustainable development projects that lead to necessary improvements in EE/ CP/ sustainable development in the MSMEs that are presently not covered under the viable financing lines of credit.
Benefits:
Suitable assistance using term loan or working capital is granted to the ESCOs that implements EE/ CP/ Renewable Energy Project. To be eligible for this grant, the ESCO must be an MSME or otherwise the unit to which it renders its services has to be an MSME.
Link to Application: https://www.startupindia.gov.in/content/sih/en/government- schemes/sustainable-finance-scheme.html
Scheme to Support IPR Awareness Workshop/Seminars in E&IT Sector
Nodal Ministry/Department: Ministry of Electronics and Information Technology
Key Sector Covered: IT Sector
Eligibility Criteria:
This startup scheme is eligible for educational institutes and industry bodies, like MAIT, ELCINA, CII, NASSCOM, FICCI, IESA, ASSOCHAM, etc., DeitY
Society(ies) or DeitY Autonomous Body(ies).
It is mandatory that the organisation should be registered with the Central Plan Scheme Monitoring System (CPSMS) portal, in order to apply for support for IP Awareness Workshop(s)/Seminar(s).
Brief: The aim of the scheme is the establishment of Centre of Excellence in Intellectual Property:
- Providing IP Facilitation Support to MeitY Societies and Grantee Institutions
- Providing Financial Support to Startups and SMEs for International Patent Filing through SIP-EIT Scheme IPR Awareness through Financial Support to Industry Bodies and Academia
- Providing Help-Desk services for IPR
- Creation of IPR Awareness through Digital Media
Benefits: The organisations are provided with a grant of INR 2 Lakhs to INR 5 Lakhs. This includes educational institutes – INR 2 Lakhs, industry bodies – INR 3 Lakhs and Deity Society(ies) or DeitY Autonomous Body(ies) – INR 5 Lakhs.
Link to Application: https://www.indiascienceandtechnology.gov.in/funding- opportunities/startups/scheme-support-ipr-awareness-seminarsworkshops-eit-sector
Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)
Nodal Ministry/Department: Ministry of Electronics and Information Technology
Key Sector Covered: Information and Technology
Eligibility Criteria:
Brief: IP-EIT is a scheme to provide financial support to MSMEs and Technology Startup units for international patent filing to encourage innovation and recognize the value and capabilities of global IP along with capturing growth opportunities in ICTE sector.
Benefits: Reimbursement will be limited to a total of Rs 15.0 Lakhs per invention or 50% of the total expenses incurred in filing and processing of patent application upto grant whichever is lesser.
Link to Application: https://www.meity.gov.in/content/support-international- patent- protection-electronics-information- technology#:~:text=SIP%2DEIT%20is%20a%20scheme,growth%20opportunities%2 0in%20ICTE%20sector.
Entrepreneurial and Managerial Development of SMEs through Incubators
Nodal Ministry/Department: Ministry of Micro, Small and Medium Enterprises
Key Sector Covered: Technology
Eligibility Criteria:
Brief: The main objective of the scheme is to promote emerging technological, and knowledge based innovative ventures that seek the nurturing of ideas from professionals beyond the traditional activities of Micro, Small & Medium Enterprises (MSMEs). There are multiple objectives of the scheme, some of which are:
To promote emerging technological and knowledge based innovative ventures that seek the nurturing of ideas from professionals.
To promote and support untapped creativity of individual innovators and also to assist individual innovators to become technology-based entrepreneurs.
- To promote networking and forging of linkages with other constituents of the innovation chain for commercialization of their
Benefits:
Funding support for setting up of ‘Business Incubators (BI)’: The cost may vary from Rs 4 to 8 lakh for each incubate/idea, subject to overall ceiling of Rs 62.5 lakh for each BI.
- Upgradation of infrastructure Rs 50 lakh
- Orientation/training Rs 28 lakh
- Administrative expenses Rs 0.22 lakh
Total assistance per BI Rs 66.50 lakh
Link to Application: https://www.startupindia.gov.in/content/sih/en/government- schemes/entrepreneurial_managerial_development.html
High Risk – High Reward Research
Nodal Ministry/Department: Ministry of Science & Technology, Science and Engineering Research Board (SERB)
Key Sectors Covered: Science and Technology
Eligibility Criteria:
The applicant should be an Indian citizen residing in India.
The applicant(s) must hold a regular academic/research position in a recognized institution.
The proposals can be submitted by an individual or by a team of investigators. Proposals submitted by a team of investigators must identify a Principal Investigator, who will spearhead the research objectives and administer the grant.
Brief: The Scheme for Funding High Risk – High Reward Research aims at supporting proposals that are conceptually new and risky, and if successful, expected to have a paradigm-shifting influence on the S&T. This may be in terms of formulating new hypotheses, or scientific breakthroughs which aid in emergence of new technologies.
Benefits:
The funding is provided normally for a period of three years. In exceptional cases, the duration can be up to 5 years as assessed by the expert committee.
- No budget limit is prescribed for this type of project. The research grant covers equipment, consumables, contingency, and travel apart from overhead
Link to Application: https://serbonline.in/SERB/HRR
Promoting Innovations in Individuals, Startups and MSMEs (PRISM)
Nodal Ministry/Department: Ministry of Science & Technology, Department of Scientific and Industrial Research
Key Sector Covered: Science and Technology
Eligibility Criteria: The scheme runs in two phases.
For PRISM I, any Indian citizen including student innovators can apply.
For PRISM II, PRISM innovators or innovators who have successfully demonstrated proof of concept with the support of government institution/agency, PRISM-R&D proposals and public funded – R&D institutes/ autonomous institutions/ laboratories/ academic institutes etc. are eligible.
Brief: The scheme provides grants, technical guidance and mentoring to individual innovators by incubating their idea towards the creation of new enterprises in phases. It also provides grant-in-aid support to technology solution providers developing technology solutions aimed at helping MSME cluster. The scheme runs in two phases
Benefits: PRISM Phase-I Category-I: For proof of concept/prototype/models, with project cost upto INR 5 Lakhs, a maximum of INR 2 Lakhs or 90% of the total project cost (whichever is less) is provided.
PRISM Phase-I, Category-II: For fabrication of working model/ process know- how/testing & trail/ patenting/ technology transfer, etc. with a project costing between INR 5 Lakhs to INR 35 Lakhs, a maximum of INR 20 Lakhs or 90% of the total project cost (whichever is less) is given.
- Prism-Phase-II: Enterprise incubation, with a project costing between INR 35 Lakhs and INR 100 Lakhs, up to INR 50 Lakh limited to 50% of the total project cost is provided. For PRISM-R&D Proposals, up to INR 50 Lakhs limited to 50% of the total project cost is
Link to Application: https://www.indiascienceandtechnology.gov.in/funding- opportunities/startups/promoting-innovations-individuals-startups-and-msmes- prism
NewGen Innovation and Entrepreneurship Development Centre
Nodal Ministry/Department: Ministry of Science & Technology
Key Sector Covered: Science and Technology
Eligibility Criteria:
The institution should be a University/Deemed University or a premier Institute/College offering Engineering, Technology, Science courses at degree level or above for at least 5 years.
- The institution must have at least two faculty members trained in Entrepreneurship through DST sponsored Faculty Development Programme and should have a minimum dedicated space of about 5000 square feet for housing the NewGen IEDC
Brief:
The New Generation Innovation and Entrepreneurship Development Centre (NewGen IEDC) is the programme launched by the National Science and Technology Entrepreneurship Development Board (NSTEDB), Department of Science & Technology (DST), Government of India and implemented by EDII, Ahmedabad. NewGen IEDC aims to inculcate the spirit of innovation and entrepreneurship amongst the young S&T students and encourage and support start-up creation through guidance, mentorship & and support. NewGen IEDCs would be established in academic institutions where students will be encouraged to take up innovative projects with the possibility of commercialization.
Benefits:
Financial assistance to the selected institutions for the establishment of NewGen IEDC, towards its non-recurring
As a one-time establishment cost) of up to Rs. 25 Lakhs and recurring expenditure (Project Development Cost, Travel, Training and Contingencies, etc. of up to Rs. 10 lakhs for five full operational years would be provided.
Biotechnology Ignition Grant
Nodal Ministry/Department: Ministry of Science & Technology, Biotechnology Industry Research Assistance Council (BIRAC)
Key Sector Covered: Science and Technology
Eligibility Criteria: Please refer to the following link: chrome extension://efaidnbmnnnibpcajpcglclefindmkaj/https://birac.nic.in/webcontent/BIG_G uidelines_Version_8_Jul_2020.pdf – Section 6 (Page 5)
Brief: The Biotechnology Ignition Grant (BIG) is a flagship scheme of BIRAC which recognizes and invests in innovative ideas in the biotech sector. The ideas should have clear potential to translate into commercial products/technologies. BIG supports individual entrepreneurs/ start-ups from ideation to Proof of Concept (PoC)..
Benefits: Under BIG scheme, BIRAC provides grant-in-aid of up to INR 50 lakhs (approx. USD 75,000) for a period of 18 months.
BIG Partners and BIRAC provide continuous mentoring support to the grantees, including but not limited to the following:
- Technical Mentoring (Connect with Technical Experts)
- IP Support
- Legal Support
- Networking and Outreach
- Trainings
- Regulatory Advice
- Business Mentoring
- Connect with Investors
- Any other assistance on case basis
Link to Application: https://birac.nic.in/big.php
Small Business Innovation Research Initiative (SBIRI)
Nodal Ministry/Department: Ministry of Science & Technology, Biotechnology Industry Research Assistance Council (BIRAC)
Key Sector Covered: Science and Technology
Eligibility Criteria:
Eligibility Criteria for Industry
- Minimum 51% of the shares of the Company should be held by Indian Citizens holding Indian passport (Indian Citizens do not include Person of Indian Origin (PIO) and Overseas Citizenship of India (OCI) holders)
- Minimum half of the persons who subscribed their names to the LLP document as its Partners should be Indian citizens.
- Participating companies should have adequate in-house facility to address the project implementation aspects (which shall be evaluated during the site visit) OR Incubated with any of the recognized Incubation
Eligibility Criteria for Academic Collaborator
- Public/private university/colleges in India
- National research laboratories
- Not-for-profit private research labs/societies/foundation
Brief: The Small Business Innovation Research Initiative (SBIRI) scheme of the Department of Biotechnology, Ministry of Science & Technology was launched in 2005 to boost Public-Private- Partnership (PPP) efforts in the country. It has facilitated innovation, risk taking by small and medium companies and bringing together the private industry, public institutions, and the government under one roof to promote the research and innovation in the Indian Biotech Sector. The projects supported under the scheme have resulted in prominent outcomes in the form of some products which have already come to the market.
Benefits:
- Up to 50 lakhs: 100% grant from BIRAC (primary applicant + collaborating company, if any)
More than 50 lakhs: BIRAC grant would be Rs. 50 Lakhs + 50% of the Cost over and above Rs. 50 Lakhs. Remaining cost would be borne by the company
Link to Application: https://birac.nic.in/desc_new.php?id=217
Name of the Scheme: Financial Assistance to Professional Bodies & Seminars/ Symposia
Nodal Ministry/Department: Ministry of Science & Technology, NSERB INDIA
Key Sector Covered: Science and Technology
Eligibility Criteria:
Applicant should be and Indian Citizen residing in India.
The applicant(s) must hold a regular position in a recognized academic institution or in a national laboratory / recognized R&D institution.
Application should be submitted not earlier than 180 days and not later than 60 days, before the date of the event.
Brief: The primary focus of the scheme is to support events having strong orientation towards scientific research in the areas of basic sciences, engineering, technology, agriculture & medicines. Events dealing with social science, management and those purely concerned with policy matters are generally not encouraged but may be considered as an exceptional case if there is a strong interface with mainstream areas of support. The scientific/technical contents of the events, thematic relevance, contextual impact and extent & level of participation are key components for deciding the support worthiness and quantum of support for individual events.
Benefits:
SERB extends partial financial support, on selective basis, for organising such events (National as well as International).
Academic institutions, research laboratories, professional bodies and other non-profit organisations, engaged in promoting scientific research, are eligible for financial support under the scheme. The support is primarily given to encourage participation of young scientists and research professionals in such events along with nominal support for pre-operative expenses like announcements brochures etc.
Link to Application: https://serbonline.in/SERB/seminar_symposia
Extra Mural Research Funding
Nodal Ministry/Department: Ministry of Science & Technology, NSERB INDIA
Key Sector Covered: Science and Technology
Eligibility Criteria:
Applicant should be an Indian citizen residing in India.
The applicant(s) must hold a regular academic/research position in a recognized institution.
The proposals can be submitted by an individual or by a team of investigators. Proposals submitted by a team of investigators must identify a Principal Investigator, who will spearhead the research objectives and administer
the grant.
Brief: Individual centric competitive mode of funding will be provided under the EMR funding schemes. SERB supports potential scientists for undertaking research in frontier areas of S&T in Life Sciences, Physical Sciences, Chemical Sciences, Engineering Sciences, Earth & Atmospheric Sciences & Mathematical Sciences. The Science and Engineering Research Board has decided to invite Core Research Grant (EMR PAC) proposals through Call for Proposals twice a year.
Link to Application: https://indiabioscience.org/grants/extra-mural-research- funding-individual-centric
Technology Development Programme
Nodal Ministry/Department: Ministry of Science & Technology, Department of Science and Technology
Key Sector Covered: Science and Technology
Eligibility Criteria:
- Proposals can be submitted for financial support by scientists/engineers/technologists working in academic institutions/registered societies/R&D institutions/laboratories having adequate infrastructure/facilities to carry out technology development The Programme encourages multi-disciplinary Proposals envisaging network/collaboration of various Organizations having diverse expertise and facilities for synergistic implementation of the Projects. Participation of industry is encouraged.
Project Proposals from academic/R&D Institutions in collaboration with Industry having DSIR-recognized R&D Laboratories will be preferred
Brief: The primary objective of the Programme is to facilitate and support the development of products or techniques/technology aimed at specific end-use. The specific objectives of the Programme are to develop and integrate technologies following a holistic approach in identified areas
Develop and integrate technologies following a holistic approach in identified areas.
Promote application of modern/advanced technologies to socio-economic problem-solving.
Promote modernization of traditional technologies, tools, and skills. Facilitate enhancing quality and performance of the traditional/non- non-non-traditional items.
- Encourage developments in the application of R&D activities
Link to Application: https://dst.gov.in/technology-development-program-tdp
Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)
Nodal Ministry/Department: Ministry of Electronics and Information Technology
Key Sector Covered: Science and Technology
Eligibility Criteria:
Brief: IP-EIT is a scheme to provide financial support to MSMEs and Technology Startup units for international patent filing to encourage innovation and recognize the value and capabilities of global IP along with capturing growth opportunities in ICTE sector.
Benefits: Reimbursement will be limited to a total of Rs 15.0 Lakhs per invention or 50% of the total expenses incurred in filing and processing of patent application upto grant whichever is lesser.
Link to Application: https://www.meity.gov.in/content/support-international- patent- protection-electronics-information- technology#:~:text=SIP%2DEIT%20is%20a%20scheme,growth%20opportunities%2 0in%20ICTE%20sector.
Enhancement of Competitiveness in the Indian Capital Goods Sector
Nodal Ministry/Department: Ministry of Heavy Industries
Key Sector Covered: Technology
Eligibility Criteria:
Mapping of Skill Gap by SSC and formulating QPs
Industry validation from 30 Industries and hereafter approval from the Line Ministry
Proposal along with all necessary enclosures is submitted to NCVET. Draft QPs are scrutinized by NCVET against checklist
Proposals are uploaded on public domain and shared with stakeholders, hereafter, feedback from stakeholders is shared with submitting body
Final proposals are tabled at NSQC meeting by NCVET. Approved proposal becomes part of National Qualification Register Existing testing and certification
Brief: The scheme encourages investment in technology up gradation, skill development and augmentation of modern manufacturing capacities for holistic growth of the industry
Benefits:
To make the sector globally competitive To create technology depth
To create common industrial facility centres to foster Industry Academia partnerships
Link to Application: https://heavyindustries.gov.in/writereaddata/UploadFile/Notification%20for%20Capital%20Goods%20%20 Phase%20II%20.pdf
Entrepreneurial and Managerial Development of SMEs through Incubators Nodal Ministry/Department: Ministry of Micro, Small and Medium Enterprises
Key Sector Covered: Technology
Eligibility Criteria:
Brief: The main objective of the scheme is to promote emerging technological, and knowledge-based innovative ventures that seek the nurturing of ideas from professionals beyond the traditional activities of Micro, Small & Medium Enterprises (MSMEs). There are multiple objectives of the scheme, some of which are:
To promote emerging technological and knowledge-based innovative ventures that seek the nurturing of ideas from professionals.
To promote and support untapped creativity of individual innovators and also to assist individual innovators to become technology-based entrepreneurs.
- To promote networking and forging of linkages with other constituents of the innovation chain for commercialization of their
Benefits:
Funding support for setting up of ‘Business Incubators (BI)’: The cost may vary from Rs 4 to 8 lakh for each incubate/idea, subject to overall ceiling of Rs 62.5 lakh for each BI.
- Upgradation of infrastructure Rs 50 lakh
- Orientation/training Rs 28 lakh
- Administrative expenses Rs 0.22 lakh
Total assistance per BI Rs 66.50 lakh
Link to Application: https://www.startupindia.gov.in/content/sih/en/government- schemes/entrepreneurial_managerial_development.html
Self Employment and Talen Utilisation (SETU) Scheme
Nodal Ministry/Department: Niti Aayog
Key Sector Covered: Technology
Eligibility Criteria: This scheme is for Budding entrepreneurs who will be able to get incubation and other support while doing a startup.
Brief: SETU will be a Techno-Financial, Incubation and Facilitation Programme to support all aspects of startup businesses, and other self-employment activities, particularly in technology-driven areas. It aims to create around 100,000 jobs through start-ups.
Benefits: This scheme aims to increase the number of startups by incubation and extending other services to reduce the rate of unemployment in the country.
Link to Application:https://www.startupindia.gov.in/content/sih/en/government- schemes/setu_scheme.html
AUTHOR: – CA RAJESH BALDUWA (Principal Partner)
Chartered Accountant (FCA), Diploma in IFRS.
Expert Domain- CFO services, FDD and MIS services
