Department for Promotion of Industry and Internal Trade

Department for Promotion of Industry and Internal Trade

• Existing Government Schemes for startups
  • Biotechnology Industry Research Assistance Council (BIRAC), D/o Biotechnology #Biotechnology Ignition Grant (BIG);
    #Launching Entrepreneurial Driven Affordable Products (LEAP) Fund
  • Department of Science and Technology #DST-NSTEDB Seed Support System – Corpus of 2 crore. Quantum of financial assistance to the incubated entrepreneur • Minimum: Rs. 2 lakh • Maximum: Rs. 50 lakhs.#Startup Research Grant – Research grant of Rs. 30 lakh plus overheads is provided for a period of two years to researchers in a new institution.
  • Department of Defence Research and Development – Technology Development Fund (TDF) Scheme; Innovations for Defence Excellence (iDEX)
  • Ministry of Agriculture [Rashtriya Krishi Vikas Yojna (RKVY)]
  • Quantum of Funding Support from State Governments – A few venture fund and funds of funds for a few State Governments are – Karnataka Information Technology Venture Capital Fund (KITVEN), UP Startup Fund, Bhamashah Techno Fund, Govt. of Rajasthan.
  • Ministry of Electronics and Information Technology # Technological Incubation and Development of Entrepreneurs (TIDE) – It assists institutions of Higher learning to strengthen their Technology Incubation Centres. Each TIDE center is given financial support as Grant-in-aid of up to Rs 155 lakhs – payable in instalments. These funds can be used for improvement in infrastructure – up to Rs. 30 lakhs and for providing financial support to the incubating companies – Rs 125 Lakhs (@ Rs 25 lakhs per company). # Electronic Development Fund (EDF) – Important strategy to enable creation of electronics industry ecosystem in the country. EDF has invested Rs. 144 crores in Daughter Funds, which in turn have made investments of INR 604 Cr in 80 Ventures/Startups. CANBANK Venture Capital Funds Ltd. (CVCFL) a subsidiary of Canara Bank, is the Fund Manager for EDF.
• Startup Funds under DPIIT – DPIIT doesn’t directly funds startups under Startup India initiative but provides capital at various stages of business cycle of a startup through FFS and SISFS.
  • SIDBI Funds of Funds Scheme (FFS) – Rs. 10,000 crore fund formed to enhance capital availability as well as catalyze private investments and thereby support growth of Indian startup ecosystem. FFS provides capital to SEBI-registered Alternate Investment Funds (daughter funds), who in turn invest money in high-potential Indian startups. FFS is being managed by SIFBI. The commitment of INR 6,494.45 crores by SIDBI has catalyzed INR 42,740 crores in the Indian startup ecosystem, a ~7X multiplier effect.
  • Startup India Seed Fund Scheme (SISFS) – It provides financial assistance for proof of concept, prototype development, product trials, market entry and commercialization. It enables startups to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions. Rs. 945 Crore has been allocated under the Scheme for period of 4 years starting from 2021-22. Two startups funded are closer to telecom domain – (i) Pantherun Technologies Private Limited (protect communication devices from hacking) and (ii) Banyan Intelligence Private Limited (automate freight management processes).
• Success story of Telecom startup working with corporate
  • Covers the success story of WiSig Networks and its corporate partnership with Cyient to enable volume production of India’s first architected/ designed NB-IoTSoC chip.
  • Nuronics (in AI domain) became part of Airtel Startup Accelerator Program.
  • Tejas Network (in transmission products and solutions) partnered with Tata Sons Pvt. Ltd which bought its 43.35% stake for Rs. 1,884 crore in 2021.