An expert advisory committee will be constituted by the commerce and industry ministry for the overall execution and monitoring of the Rs 1,000 crore Startup India Seed Fund scheme, according to a notification. The scheme was announced by Prime Minister Narendra Modi this month to support startups and help budding entrepreneurs pursue innovative ideas.

The Department for Promotion of Industry and Internal Trade (DPIIT), an arm of the ministry, said the committee will evaluate and select incubators for allotment of seed funds, monitor progress, and take all necessary measures for efficient utilization of funds towards fulfilment of objectives of the scheme. The committee members would include representatives from DPIIT; departments of biotechnology, science and technology; Ministry of Electronics and Information Technology; Indian Council of Agricultural Research ; Niti Aayog; and at least three experts nominated by DPIIT Secretary.

It said the scheme shall provide financial assistance to startups through a corpus of Rs 945 crore that will be disbursed through selected incubators across India in 2021-25. To avail the benefits of the scheme the startup should have been recognised by DPIIT and incorporated not more than two years ago at the time of application, it should also be using technology in its core product or service.

Besides, the startup should not have received more than Rs 10 lakh of monetary support under any other central or state government scheme, and shareholding by Indian promoters in the startup should be at least 51 percent at the time of application to incubator for the scheme. Preference would be given to startups creating innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas, textiles, etc, it said.

Similarly, the incubator must be a legal entity; it should be operational for at least two years on the date of application to the scheme; must have at least 5 startups undergoing incubation physically on the date of application; and should not be disbursing seed fund to incubatees using funding from any third-party private entity.

Further, it said each of the incubators applying for the scheme will constitute a committee called the Incubator Seed Management Committee, consisting of experts who can evaluate and select startups for seed support. The DPIIT would evaluate the outcome of the scheme by the end of 2024-25, especially with reference to financial, social and economic returns.

First Published:Jan 29, 2021 2:55 PM IST