Which Of These Government Startup Schemes Are Best For You?
India is gradually constructing a hefty startup environment. In the process of supporting and promoting entrepreneurs, the government has formulated a department (ministry) that is dedicated to helping startups in India grow. This ministry offers various government startup schemes that will allow the entrepreneurs to initiate their business on a good note. So if you are wondering what these schemes are and all details related to them, then you are at the right place. In this following piece of article, we will try to give you a sneak peek into various government schemes for startups in India.
3 Government Schemes For Startup In India
The prevailing lockdown and restriction strategy of the Indian government as a measure to prevent the spread of the deadly coronavirus has affected some sectors badly like Aviation, Tourism, and Hospitality. The Indian government is planning for a robust package for these sectors to support the economic breakdown that these sectors are encountering. The finance ministry is working to support all the affected sectors in the economy by introducing various government startup schemes and enabling new businesses to come into the market. Here is the list of all the government schemes for entrepreneurs for the year 2021.
The Venture Capital Assistance Scheme
Ministry: Agriculture and Farmers Welfare
Among the government schemes list of startups, the first one is the Venture Capital Assistance scheme. This is a financial aid in the form of a loan that is free of interest offered by SFAC to selected projects to cater to the shortfall in the requirement of capital to implement the project. This is a government scheme for farmers.
- This is a government scheme 2021 for agripreneurs for making investments for their agricultural startup through the participation of finance.
- Offers financial support for preparing bankable DPRs (Detailed Project Reports) through PDF (Project Development Facility).
- Producer Groups
- Partnership/Proprietary Firms
- Self Help Groups
- units in Agri export zones
- Agriculture graduates either Individually or in groups for creating agribusiness projects.
The Samridhi Fund
The next government funding for startups in India is the Samridhi Fund which is a roughly Rs 430 crore social venture capital fund. This fund is being offered by the Small Industries Development Bank of India (SIDBI). The SIDBI has anticipated the formulation of the Samridhi Fund to offer capital to social startup businesses that can successfully offer both social and financial returns. This government startup scheme is available for startups in Bihar, Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Odisha, Rajasthan, Jharkhand, and West Bengal.
- The investment will be offered in the companies that are in the growing stage, undertaking expansions that have a prevailing business base.
- Samridhi can offer capital for growth to enterprises via a variety of funding tools that are used in the market.
- This startup in India scheme typically offers capital between the range of INR 5 – 25 crore. In some exceptional scenarios, this scheme may invest amounts beyond this scale especially in the case when strong development impact can be geared.
- The targeted sectors for this scheme are:
- Affordable Healthcare
- Agriculture & Allied Services
- Clean Energy
- Financial Inclusion (Including MFIs)
- Skill Building, etc.
The eligibility required for getting your business funded are as follows:
- Be economically viable
- Offer access to markets for the poor
- Impact the poor as customers, producers, or employees and be socially relevant.
- Increase the capital flow to the above discussed states
- Focus on Social, Environment, and Governance related matters.
Single Point Registration Scheme (SPRS)
Ministry: Micro Small & Medium Enterprises
The government is the single biggest purchaser of a variation of goods. With an aim to raise the share of purchase from the sector of the small scale, the Government Stores Purchase Programme was launched in 1955-56. The micro and Small Enterprise (MSEs) are being registered by NSIC under SPRS (Single Point Registration Scheme) for being a part of the purchases by the government.
- Free of cost info on tender
- Exemption from Earnest Money Deposit (EMD)
- Offers the advantage in tender participation
- Procurement from MSEs
- All Micro & Small Enterprises that have the EM Part-II (Optional)/ Udyog Aadhaar Memorandum (UAM) can register with NSIC under its SPRS (Single Point Registration Scheme).
- MSE (Micro & Small Enterprises) who have already started their commercial production but have not finished one year of existence.
These schemes are being promoted by the government to not only increase the number of businesses that are being benefited from them but also to bring into light the work that has been done by the entrepreneurs. These government startup schemes have been introduced to develop the Indian startup environment.