Top Startup Schemes By The Government of India That Startups Should Know About

The Indian government is trying to boost up the Indian startup ecosystem to build up entrepreneurs by introducing over 30+ startup schemes in recent few years. These startup schemes cover wide areas and are focused on various different streams of the industry.

The number of startups is expected to grow up to 12,000 from the current number i.e. 4,400 technology startups by 2020. India stands third in terms of the number of startups after the US and Britain. India has some very influential startups like Flipkart, Snapdeal, Ola, Hike, InMobi, Paytm, Oyo, Zomato and Quikr.

 

The Government of India has initiated a number of startup schemes and they have been mentioned here below. These schemes were launched even before the Startup India Plan initiated by the current government. To spread awareness about these schemes we have prepared a list of startup schemes initiated by the GOI. These schemes are run by different ministries and are headed by various internal and external departments.

Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)

Launched In: N/A       

Supervising Body: Department of Electronics and Information Technology (DeitY)

Industry Applicable: IT Services, enterprise software, technology hardware, Internet of Things, Artificial Intelligence.

Eligible For: MSMEs and technology startups in the ICTE sector.

Overview: The scheme aims at providing financial support to MSMEs and technology startup units for the process of international patent filing to promote innovation and identify the value and potential of global IP while at the same time exploring the growth opportunities in the ICTE sector.

Fiscal Incentives: Funding will be limited to a total of INR 15 Lakhs per innovation or 50% of the overall expenses incurred in the processing of the patent application up to grant, either of which is lesser.

Time Period: Valid up to 30.11.2019.

Multiplier Grants Scheme (MGS)

Launched In: May 2013

Supervising Body: Department of Electronics and Information Technology (DeitY)

Industry Applicable: IT Services, analytics, enterprise software, technology hardware, IOT, AI.

Eligible For: Startups, incubator/academia/accelerators with projects in electronics & information technology.

Overview: The MGS was initiated with the goal to encourage mutual R&D between business and academics/R&D institutions for expansion of products and packages.

Fiscal Incentives: The Government grants for the individual industry are up to an upper limit of INR 2 Cr per project for a time period of 2 years or less. For industry consortiums, the maximum grant would be INR 4 Cr for three years.

Time Period: 2-3 years

Software Technology Park (STP) Scheme

Launched In: N/A

Supervising Body: Software Technology Parks of India (STPI)

Industry Applicable: IT services, fintech, software, analytics, AI.

Eligible For: Software companies

Overview: The STPI is formed with the purpose of encouraging, endorsing, and speeding up software exports from India. The Government of India STP Scheme, provides statutory services, data communications servers, incubation amenities, training services. The scheme permits software companies to establish operations in an appropriate location and plan their investment and growth, driven by business needs.

Fiscal Incentives: Sales in the DTA up to 50% of the FOB price of exports is allowable and drop on computers at accelerated rates up to 100% above 5 years is permitted.

Time Period: N/A.

Electronic Development Fund (EDF) Policy

Launched In: N/A

Supervising Body: Department of Electronics and Information Technology (DeitY)

Industry Applicable: IT Services, analytics, enterprise software, technology hardware, Internet of Things, AI, nanotechnology.

Eligible For: Startups practicing innovation in sectors like electronics, IT and nanoelectronics.

Overview: The schema was envisaged to expand the Electronics System Design and Manufacturing (ESDM) sector to attain “Net Zero Imports” by 2020. The EDF is aimed at attracting project funds, angel funds and seed funds for the R&D and innovation in particular areas. It will help form a cell of Daughter funds and Fund Managers who will contact good and potentially strong startups and shall select them based on specialized considerations.

Fiscal Incentives: The Electronic Development Fund (EDF) is established as a “Fund of Funds” to contribute in “Daughter Funds” which will further provide risk capital to organizations developing new technologies. The Fund Manager for EDF is CANBANK Venture Capital Funds Ltd. (CVCFL).

Time Period: N/A

Modified Special Incentive Package Scheme (M-SIPS)

Launched In: July 2012

Supervising Body: Department of Electronics and Information Technology (DeitY)

Industry Applicable: Technology hardware, IOT, aeronautics/Aerospace & Defense, automotive, non-renewable and renewable energy, green technology and nanotechnology.

Eligible For: Startups in electronic manufacturing

Overview: This scheme is developed with the aim to support IPR awareness workshops/seminars about Intellectual Property Rights amidst several stakeholders with special focus in the E&IT sector.

Fiscal Incentives: It provides a capital subsidy of 20% in SEZ (25% in non-SEZ) for entities engaged in the manufacturing of electronics. Further, it provides for repayment of CVD/ excise for capital equipment for non-SEZ units.

Time Period: N/A

Scheme to Sustain IPR Awareness Seminars/Workshops in E&IT Sector

Launched In: N/A

Supervising Body: Department of Electronics and Information Technology (DeitY)

Industry Applicable: IT services, analytics, enterprise software, technology hardware, IOT, AI.

Eligibility: This scheme is eligible for educational institutes and business bodies like MAIT, ELCINA, CII, NASSCOM, FICCI, IESA, ASSOCHAM, etc. It is obligatory that the institute should be registered at the Central Plan Scheme Monitoring System (CPSMS) portal only then can it apply for IP (Intellectual Property) Awareness Workshop(s)/Seminar(s).

Overview: The scheme aids IP awareness workshops and seminars and funding grants.

Fiscal Incentives: The institutions are provided with funding of INR 2 Lakhs to INR 5 Lakhs. For educational institutes – INR 2 Lakhs, industry entities – INR 3 Lakhs and DeitY Society(ies) or DeitY Autonomous Body(ies) – INR 5 Lakhs.

Time Period: The scheme is valid up to 30.11.2019.

NewGen IEDC (NewGen Innovation and Entrepreneurship Development Centre)

Launched In: N/A

Supervising Body: NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)

Industry Applicable: Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defense, agriculture, AI, Augmented + Virtual reality, automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, fintech, IOT, nanotechnology, social issues, food & Beverages, animals, textiles & apparel.

Eligibility: The parent institution must have mandatory expertise and infrastructure to support the project. This includes at least a dedicated space of around 5,000 square feet to set up a NewGen IEDC, library, competent faculty, workshops, etc.

Overview: The NewGen IEDC is being propagated in educational institutions to grow an institutional mechanism to generate an entrepreneurial atmosphere in S&T academic organizations and to promote techno-entrepreneurship for the development of revenue and employment by S&T persons. There are total 40+ EDCs and 35 IEDCs in various states as of now.

Fiscal Incentives: The NSTEDB startup scheme by the government of India will provide a one-time, non-recurring financial aid rising up to a maximum of INR 25 Lakhs. Non-recurring grants will also be provided for sustaining the working capital cost.

Time Period: N/A

The Venture Capital Assistance Scheme

Launched In: 2012

Supervising Body: Small Farmers’ Agri-Business Consortium (SFAC)

Industry Applicable: Agriculture

Eligibility: Agricultural groups including individuals, farmers, producer groups, partnership/proprietary firms, self-help groups, companies, agri-preneurs, units in agri-export zones, and agriculture graduates for agri-business projects.

Overview: Venture Capital Assistance is a scheme that provides monetary support through an interest-free loan by the SFAC for implementation of the project. The Scheme was executed during 2012-17 in the XII Plan. SFAC has tie-ups with 41 banks to generate financial support.

Fiscal Incentives: The amount of aid from the SFAC Venture Capital Assistance will vary depending on the project cost and will be the lowest of the following:

> 26% of the promoter’s equity.

> INR 50 Lakhs

for projects located in North-Eastern Region, Hilly States or in any part of the country where the project is supported by a registered Farmer Producers Organization, the quantum of venture investment will be the lowest of :

> 40% of the promoter’s equity.

> INR 50 Lakhs

Time Period:  valid for the period between 2012-2017.

Credit Guarantee

Launched In: N/A

Supervising Body: Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Industry: Sector-Agnostic

Eligibility: The scheme is valid for Micro and Small Enterprises involved in manufacturing or service activity but does not include retail trade, educational establishments, agriculture, self-help groups (SHGs), training groups, etc.

Overview: The scheme was launched to toughen the credit delivery system and assist in the flow of credit to the MSE sector. Lending institutions primarily included public, private, foreign banks, regional rural banks, and SBI.

Fiscal Incentives: Both term loans and/or working capital competence up to INR 100 Lakhs. Guarantee cover up to 75% of the credit facility for a maximum of INR 50 Lakhs.

Time Period: N/A

Performance & Credit Rating Scheme

Launched In: August 2016

Supervising Body: National Small Industries Corporation (NSIC)

Industry Applicable: Sector-agnostic

Eligibility: MSMEs registered in India can apply under this scheme. A unit with a turnover of INR 1 Cr is eligible under the scheme. The case of the rating is to be recommended by a bank or NBFC.

Overview: The scheme is developed with the aim to generate awareness about the potential and shortcomings of small-scale industries. It was created by the Ministry of MSME in consultation with Small Industries Associations & Indian Banks’ Association and a range of rating agencies viz. CRISIL, ICRA, Dun & Bradstreet (D&B) and ONICRA.

Fiscal Incentives: The incentives are relative to the turnover of the MSMEs. For example, up to a maximum of INR 50 Lakhs, 75% of the rating fee or INR 25,000 (whichever is less) will be given under the scheme. In case of turnover above INR 50 Lakhs up to INR 200 Lakhs, 75% of the fee or INR 30,000 (whichever is less).  

Time Period: N/A

Raw Material Assistance

Launched In: N/A

Supervising Body: National Small Industries Corporation (NSIC)

Industry Applicable: Sector-agnostic

Eligibility: MSMEs with Indian registration is applicable under this scheme.

Overview: This startup scheme aims at supporting MSMEs by way of monetarily aiding the purchase of raw material. This provides an opportunity for MSMEs to manufacture quality products.

Fiscal Incentives:  MSMEs will be monetarily helped for bulk purchase, cash discount, etc. All the measures, documentation and the issue of letter of credit in matters of imports will be managed carefully. Security shall be in the form of Bank Guarantee from Approved Banks.

Time Period: MSMEs will be given financial support for buying of raw material up to 90 days. If the outstanding dues are cleared within the time frame of 270 days, micro-enterprises will abide by 9.5%- 10.5% interest. On the other hand, small and medium enterprises will be paying 10% to 11% interest.

 Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

Launched In: 2005

Supervising Body: Khadi and Village Industries Commission

Industry Applicable: Sector-agnostic

Eligibility: NGOs, Central, State Government and semi-Government institutions, Panchayati Raj institutions (PRIs), private sector by forming cluster specific SPVs, Organizations and corporate social responsibility (CSR) foundations with proficiency to carry out cluster development are entitled to apply under this scheme.

Overview: The objective of this scheme is to arrange traditional industries and artisans into groups to develop a spirit of competition and maintain their long-term sustainability by providing support. It also aims to develop the marketability of products of such groups, initiate innovative and traditional skills, and over the time repeat similar models of group-based regenerated traditional industries.

Fiscal Incentives: The financial aid for any particular project shall be a maximum of INR 8 Cr. Following is the budget limit per group:

> Heritage Groups (1,000-2,500 artisans) – INR 8 Cr/ cluster

> Major Groups (500-1,000 artisans) – INR 3 Cr / cluster

> Mini-Groups (Up to 500 artisans) – INR 1.5 crore/ cluster

Time Period: The timeframe for the execution of the project will be three years.

 Single Point Registration Scheme (SPRS)

Launched In: 2003

Supervising Body: National Small Industries Corporation (NSIC)

Industry Applicable: Sector-agnostic

Eligibility: Micro and small ventures registered under the Director of Industries (DI)/District Industries Centre (DIC) as mechanized/service enterprises or with an acknowledgment of Entrepreneurs Memorandum (EM Part-II) are entitled to procuring this scheme by the Indian government. Those who have already started their marketable production but have not finished one year of existence. A Provisional Registration Certificate will be issued to them in the SPRS scheme with a financial limit of INR 5 Lakhs, valid up to a period of one year from the issue date.

Overview: With an aim of growing the share of procurement from the small-scale sector, the Government Stores Purchase Programme was initiated in 1955-56. NSIC registers micro & small enterprises (MSEs) in the Single Point Registration Scheme (SPRS) for partaking in government purchases.

Fiscal Incentives: The qualified micro and small enterprises will be given an exemption from payment of Earnest Money Deposit (EMD) and will be subject to tender sets, free of cost. In tender participating, MSEs with a quoting price in the price band of L1+15 percent will also be allowed to deliver a portion up to 20% of the requirement by lowering their price to L1 Price wherein L1 is non-MSEs.

Time Period: The SPRS Certificate given to the micro & small enterprise is applicable for two years. It is reviewed and renewed every two years.

 Aspire – A Scheme for the encouragement of innovation, entrepreneurship, and agro-industry

Launched In: March 2015

Supervising Body: Steering Committee, Ministry of MSME

Industry Applicable: Agriculture, animals, healthcare & life sciences

Eligibility: All MSMEs registered with the Entrepreneurs Memorandum (EM)

Overview: Aspire was launched with an objective to set up a network of technology incubation centers to promote entrepreneurship in rural and agriculture-based industry. It also supports the setting up of Technology Business Incubators (TBIs). According to the June 2017 status report of Startup India Action Plan, 15 TBIs are being formulated. 11 TBIs are approved and four others are in advanced stages of approval. INR 34.92 Cr has already been sanctioned and INR 15.3 Cr has been released to nine TBIs.

Fiscal Incentives: >A one-time funding of 50% of the cost of Machinery and Plant excluding the infrastructure or a grant up to INR 30 Lakhs, either of which is less to be given for supporting 20 functional incubation centers.

> One-time amount of 50% of the cost of Plant & Machinery excluding the property and infrastructure or a grant up to INR 100 Lakhs, either of which is less to be given for setting up of newly developed incubation centers.

> Support would be levied for incubation of ideas at the foundation stage, each idea would be promoted with financial support @INR 3 Lakhs per idea to be given up front to the incubator for propagating the idea, with a goal to support 450 ideas.

>A one-time funding of INR 1 Cr will be given to the entitled incubator as Seed Capital. The Incubator will endow as Debt/ Equity funding up to  50% of the entire project cost or INR 20 Lakhs for each startup, whichever is a smaller amount. 150 such innovative ideas will be supported.

Time Period: Period of incubation- 12 months to 24 months.

 Infrastructure Development Scheme

Launched In: N/A

Supervising Body: National Small Industries Corporation (NSIC)

Industry Applicable: Sector-agnostic

Eligibility: space shall be pre-arranged for IT/ITES/MSME units not registered under STPI (Software Technology Parks Of India Scheme). Units apart from MSMEs such as Banks/PSUs/financial establishments, corporate sectors etc. will also be subject to allocation on a case-to-case by merit.

Overview: This scheme aims to solve the office space problems of MSMEs. The Corporation has buildings at metropolitan cities like New Delhi, Chennai, and Hyderabad. The Corporation provides office working space on a lease basis to potential units.

Fiscal Incentives: A 467 sq.ft. to 8,657 sq.ft. office space shall be available under this scheme.  The eligible unit has to deposit Security deposit for six months rent which is refundable at the time when the unit vacates the premises. There is a review process on an early basis.  

Time Period: The notice period is 90 days with no lock-in period.

 MSME Market Development Assistance

Launched In: 2002

Supervising Body: Office of the Development Commissioner (MSME)

Industry Applicable: Sector-agnostic

Eligibility: Units having a legitimate permanent registration with the Directorate of Industries/District Industries Centre are entitled to procure this scheme. The assortment of small/micro manufacturing units would be made by MSME-DIs as per the exhibited product profile. Micro & Small mechanized enterprise can acquire this facility only once a year.

Overview: The scheme provides funding to the concerned individuals aimed at increasing involvement of representatives of small/micro manufacturing enterprises in the MSME India stall at worldwide trade fairs/exhibitions. This scheme encourages small & micro exporters in developing overseas markets.

Fiscal Incentives: 75% of airfare (economy class) along with 50% reimbursement of the space rental charges for micro & small manufacturing enterprises of entrepreneurs falling under the General category. In the case of women/SC/S/ Entrepreneurs from North Eastern Region, a 100% space rent and airfare (economy class) will be reimbursed.

Time Period: N/A

 National Awards (Individual MSEs)

Launched In: N/A

Supervising Body: Office of the Development Commissioner (MSME)

Industry Applicable: Sector-agnostic

Eligibility: A minimum of 4 years of functional MSMEs in continuous manufacturing/services and must have Udyog Aadhaar Memorandum (UAM). Along with mandatory registration of the MSMEs in MSME Databank web portal prior to submitting their application.

Overview: With a view to recognizing the contribution of MSMEs, the Ministry of MSME provides National Awards annually to the chosen entrepreneurs and enterprises under the National Awards scheme.

Fiscal Incentives: The Selected National awardees are felicitated with a cash prize of INR 1 Lakh, INR 75K, INR 50K  in the order of rank.

Time Period: The award ceremony is held every year.

 Coir Udyami Yojana

Launched In: N/A

Supervising Body: Coir Board

Industry Applicable: Agriculture

Eligibility: All the registered coir processing MSME units with the Coir Board under Coir Industry (Registration) Rules, 2008 are entitled to this scheme by the government of India. There will be no income bar for providing support for setting up of a project under the Coir Udyami Yojana. Assistance will be made available to individuals, companies, self-help groups, NGOs, establishments registered under the Societies Registration Act 1860, co-operative societies, joint liability groups, and charitable trusts. But those units that have already been benefitted by a Govt. subsidy under any other initiative/scheme of Govt. of India or State Govt. for a similar purpose are not eligible to claim the subsidy.

Overview: The scheme supports the establishment of coir units with a project cost up to INR 10 Lakhs and an additional single cycle of working capital, which may not exceed 25% of the project cost. To provide for the working capital requirements, the banks shall deem a composite loan instead of a term loan. The limit proposed is INR 10 Lakhs. Though, the subsidy will be calculated excluding working capital component.

Fiscal Incentives: Banks shall finance capital expenditure in the form of a term loan. Working capital will be financed in the form of cash credit. Projects can also be financed in the form of composite loans by the bank, comprising of cap ex and working capital. The credit amount will be 55% of the total project cost after subtracting 40% margin money (subsidy) and the holder’s contribution of 5% from beneficiaries.

Time Period: Rate of interest chargeable for the credit shall be equivalent to the base rate. Repayment schedule cannot exceed seven years after an initial suspension of the amount, as prescribed by the concerned bank/financial institution.

 International Cooperation (IC) Scheme

Launched In: 1996

Supervising Body: Office of the Development Commissioner (MSME)

Industry Applicable: Travel & tourism, human resources, events, advertising

Eligibility: The eligible parties under this scheme include- State/Central Government Organizations, Industry/Enterprise Associations, and Registered Societies/Trusts and other Organizations connected with the MSME. The organization must be registered with the main objective of the development of MSMEs. It should be occupied in such activities for a minimum of three years and should have audited accounts for at least past three years. Events aiming to gain financial support under the Scheme must have noteworthy international participation.

Overview: Under this scheme financial aid for travel and marketing expenditures in relation to the development of the MSME sector in India is provided by the department. The objective is to make MSMEs internationally competitive.

Fiscal Incentives: The incentives vary as per the different types of organizations. For example, MSME gets 100% of the airfare subject to a maximum of INR 1.5 Lakhs. At the same time, the off bearer of the applicant organization gets an additional duty grant of INR 150 per day along with the airfare. MSMEs also get 100% of the space rent up to a maximum of INR 1 Lakh or actual rent paid, either of which is lower.

Time Period: N/A

 Credit Linked Capital Subsidy for Technology Upgradation

Launched In: N/A

Supervised By: Office of the Development Commissioner (MSME)

Industry Applicable: Sector-agnostic

Eligibility: The registered SSI Units with the State Directorate of Industries that have modified their existing plant and machinery with advanced and up to date technology are eligible under this scheme. In case of new SSI Units, only those are eligible which have been registered with the State Directorate of Industries and have their facilities only with the suitable eligible and verified technology approved by the GTAB/TSC.

Overview: This startup scheme aims at assisting technology up gradations by providing the capital subsidy to small scale industry (SSI) units. These SSI units include khadi, village, and coir industrial units.

Fiscal Incentives: The upper limit on loans under the scheme is increased from INR 40 Lakhs to INR 1 Cr while the rate of subsidy has been improved from 12% to 15%. The admissible capital subsidy is calculated in reference to the purchase price of plant and machinery and not on the term loan expended to the beneficiary unit.

Time Period: N/A

 Bank Credit Facilitation Scheme

Launched In: N/A

Supervising Body: National Small Industries Corporation (NSIC)

Industry Applicable: Sector-agnostic

Eligibility: MSMEs registered in India

Overview: The scheme is launched to meet the credit requirements of MSME units. NSIC has signed Memorandum of Understanding with several nationalized and private sector banks. Through these bank syndications, NSIC poses for credit support from banks without any cost to the MSMEs.

Fiscal Incentives: N/A.

Time Period: The repayment period differs depending on the income generated from the unit. It generally varies from five-seven years. In rear cases, it can go up to a maximum of 11 years.

 Atal Incubation Centres (AIC)

Launched In: N/A

Supervising Body: Atal Innovation Mission (AIM)

Industry Applicable: Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defense, agriculture, AI, Augmented + virtual reality, automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, fintech, IOT, nanotechnology, social impact, food & beverages, pets & animals, textiles & clothing.

Eligibility: AICs can be set up in public/private/public-private partnerships. These can be established in Academia including educational institutes and R&D institutions. And Non-academic institutions including companies/ corporate/ technology parks / industrial parks/ individuals / group of individuals.

Overview: AICs are established under the Atal Innovation Mission (AIM)  that aim to support startups and aid them in their development to become successful entities. They provide adequate infrastructure and high-quality assistance or services to startups. According to the June 16, 2017, Startup India Action Plan status report, 10 institutes to form new incubators with a grant of INR 10 Cr each have been approved by the NITI Aayog.

Fiscal Incentives: AIM will provide a grant of INR 10 Cr to each AIC for five years maximum limit that covers the capital and operational costs in running the center. The applicant should have a built-up space of at least 10,000 sq. ft to qualify for the scheme.

Time Period: N/A

 Atal Tinkering Laboratories (ATL)

Launched In: July 2016

Supervising Body: Atal Innovation Mission

Industry Applicable: Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defense, agriculture, AI, Augmented + virtual reality, automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, fintech, IOT, nanotechnology, social impact, food & beverages, pets & animals, textiles & clothing.

Eligibility: Government Schools (Grade VI-XII), local body or private trusts/society.

Overview: The main aim of this scheme is to generate a spirit of creativity, exploration, and curiosity in the young minds and nurture skills such as design approach, computational capabilities, adaptive learning, computing etc. According to the Startup India Action Plan, 500 Tinkering Labs should be established and around  457 schools have been selected for establishing Tinkering Labs. Out of the selected schools, 350 Tinkering Labs have been given a Grant-in-Aid of INR 12 Lakhs each.

Fiscal Incentives: AIM will levy grant that consists of a one-time establishment cost of INR 10 Lakhs and additional operational expenses of INR 10 Lakhs for a period of five years to every ATL.

Time Period: N/A

Scale-up Support for Establishing Incubation Centers

Launched In: N/A

Supervising Body: NITI Aayog

Industry Applicable: Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defense, agriculture, AI, Augmented + virtual reality, automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, fintech, IOT, nanotechnology, social impact, food & beverages, pets & animals, textiles & clothing.

Eligibility: To avail benefits of this startup scheme the startup should be a legally registered entity in India as a public, private, or public-private partnership and must be operational for at least three years.

Overview: This startup scheme envisions augmenting the capacity of the already Established Incubation Centers in the country. It will provide financial support to this Established Incubation upgrading them to world-class standards.

Fiscal Incentives: Grant support of INR 10 Cr will be levied in two annual installments of INR 5 Cr each.

Time Period: N/A

Udaan Training Programme For the Unemployed Youth Of J&K

Launched In: 2012

Supervising Body: National Skill Development Corporation (NSDC)

Industry Applicable: Education, human resources

Eligibility: Graduates, post-graduates and professional degree holders in J&K.

Overview: Udaan is a scheme specially formulated for the unemployed youth of  Jammu & Kashmir. This scheme provides oriented training to the youth of J & K in various fields of work for over five years. These employment orientation programmes cover sectors like business management, software, and BPO. The Scheme impacts over 40,000 youth of J&K for a period of five years. As of July 2015, 10, 585 selection drives were conducted in which 555 youths. According to a report INR 246 Cr has been spent on the programme so far, but only 10% of candidates were employed yet. Also, out of the 9,780 Kashmiri youths who got jobs under Udaan, it is uncertain as to how many still are employed. The NSDC was incapable of keeping a track of the beneficiaries.

Fiscal Incentives: INR 750 Cr has been allocated for the execution of the scheme over five years time.  

Time Period: N/A

To Generate Competitiveness in the Indian Capital Goods Sector

Launched In: November 2015

Supervising Body: Department of Heavy Industries (DHI)

Industry Applicable: Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defense, agriculture, automotive, construction, non-renewable and renewable energy, green technology, IOT, nanotechnology, social impact, food & beverages, textiles & clothing.

Eligibility: Indian capital goods sector unit.

Overview: The scheme’s aim is to further the Indian economy by turning the Indian Capital Goods Sector competitive at a global level. The Technology Acquisition Fund Programme (TAFP) provides financial aids to current capital goods industrial units for acquiring advanced technologies.  

Fiscal Incentives: Selected startups receive a grant up to 25% of the cost of the technology acquisition. Maximum amount shall not exceed INR 10 Cr.

Time Period: N/A

National Clean Energy Fund (NCEF) Refinance

Launched In: March 2014

Supervising Body: Indian Renewable Energy Development Agency (IREDA)

Industry Applicable: Renewable energy, clean energy, green energy plants.

Eligibility: The plants must have a minimum two-year operational record, and the 2 year’s average PLF should be a minimum of 20% for biomass power and 15% for Small Hydro Power (SHP) ventures. The project must also have a bare minimum of average DSCR of 1.1, after considering the IREDA refinance amount and must be able to service the loan.

Overview: The scheme is formulated to revitalize the workings of the existing biomass power and small hydropower projects by lowering the cost of funding these projects.  This is put into action by providing refinance at concessional rates of interest, with finances sourced from the National Clean Energy Fund (NCEF).

Fiscal Incentives: Refinance must not exceed 30% of the loan amount, @ 2% interest rate from IREDA to the listed commercial banks / FIs (including IREDA). The same shall be levied by the Banks/FIs to the project developers at the similar rate of 2%,  up to a maximum refinance amount of INR 15 Cr/project.

Time Period: The scheme is operational from the financial year 2013-14 up to 5 years.

IREDA Scheme For Discounting Energy Bills

Launched In: April 2016

Supervising Body: Indian Renewable Energy Development Agency (IREDA)

Industry Applicable: Renewable energy, clean energy, green energy

Eligibility: The applicant must be a pre-existing borrower of IREDA. The borrowers must not be notified as NPAs by any of the lenders. The discounted amount can only be utilized for clearance of dues of the lenders of the project

Overview: This scheme proposes to present discounting facility for the pending energy bills of Indian Renewable Energy Development Agency (IREDA) borrowers with Utilities for a maximum of six months.

Fiscal Incentives: Up to 75% of the invoice value pending for the duration of a maximum six months is subject to a maximum billing discount facility of INR 20 Cr.

Time Period: Last date of repayment will be 12 months from disbursement date.

Bridge Loan Against MNRE Capital Subsidy

Launched In: N/A

Supervising Body: Bridge Loan Against MNRE Capital Subsidy

Industry Applicable: Renewable energy, clean energy, green energy

Eligibility: MNRE recognized channel partners, State Nodal Agencies (SNA) and other shareholders, as permitted by MNRE, that have submitted applicable claims of capital subsidy at IREDA, and are pending for the release of payment due to the non-availability of funds are eligible under this scheme.

Overview: The objective is to offer term loans for renewable energy and energy efficiency plans.

Fiscal Incentives: The selected startup will be applicable for up to 80% of the existing pending capital subsidy claim, as confirmed by the IREDA with the least loan assistance of INR 20 Lakhs.

Time Period: N/A

Bridge Loan Against Generation-Based Incentive (GBI) Claims

Launched In: N/A

Supervising Body: Indian Renewable Energy Development Agency (IREDA)

Industry Applicable: Renewable energy, clean energy, green energy

Eligibility: Renewable energy developers with a valid GBI claim under GBI Scheme with the Indian Renewable Energy Development Agency (IREDA), which is processed for the release of the sum due to the non-availability of funds, are eligible under this scheme.

Overview: GBI loans were declared for grid interactive wind and solar power projects. The main objective is to expand the investor base, allow and support the entry of independent power producers and to provide an interactive base to various classes of investors.

Fiscal Incentives: A minimum loan aid of INR 20 Lakhs is given under this scheme.

Time Period: N/A

Loan for Rooftop Solar PV Power Projects

Launched In: July 2015

Supervising Body: Indian Renewable Energy Development Agency (IREDA)

Industry Applicable: Renewable energy, clean energy, green energy

Eligibility: This scheme is formulated for all grid-connected/interactive solar PV rooftops projects. Applications can be submitted in two categories- Aggregator Category and Direct Category. For the aggregator category minimum project capacity is at least 1,000 kWp. For the direct category, applicants projects are included from single roof owners only with minimum project capacity of at least 1,000 kWp. Private sector companies, central public sector undertaking (CPSU), state utilities corporations, and joint sector companies are applying for the loan.

Overview: It supports all grid-connected solar PV projects located on rooftops.

Fiscal Incentives: The quantum of the loan from the IREDA  is 70% of the project’s total cost with at least 30 % of the promoter’s contribution. The IREDA can extend the loan to 75% of the project cost on the basis of the worthiness of the promoter. The maximum refund period for the loan is nine years. The maximum construction time is 12 months from the first payment.

Time Period: N/A

Credit Enhancement Guarantee Scheme

Launched In: October 2016  

Supervising Body: Indian Renewable Energy Development Agency (IREDA)

Industry Applicable: Renewable energy, clean energy, green energy

Eligibility: Commercially feasible, grid-connected renewable power projects (solar/wind) with at least an average DSCR of 1.2 are eligible under the scheme. The minimum issue size of the planned bonds should not be lower than INR 100 Cr.

Overview: This scheme is as a non-fund partial credit assurance instrument for project developers to raise bonds against operationally feasible commissioned renewable energy projects.

Fiscal Incentives: The IREDA provides credit enhancement through irreversible partial credit guarantee to improve the credit rating of the proposed bonds. The IREDA can further guarantee up to 25% of the projected issue size of the bonds and under no circumstances, it should be more than 20% of the total capitalized cost of the project. The guarantee fee shall range from 1.8%-2.9% p.a. of its exposure.

Time Period: The guarantee period and the period for which bonds are issued shall be linked.  The maximum term of the project bonds is up to 15 years.

Dairy Entrepreneurship Development Scheme

Launched In: 2014

Supervising Body: National Bank for Agriculture and Rural Development (NABARD)

Industry Applicable: Agriculture, pets & animals, social impact, food & beverages.

Eligibility: Farmers, individual entrepreneurs, NGOs, companies, and groups can apply under this scheme. More than a single member of a family can procure the scheme but they need to set up separate units at different locations. There must be at least a 500 meters difference between the boundaries of two such farms.

Overview: This startup scheme by aims to bring structural changes and transform the traditional technology of handling of milk by upgrading them so that early processing of milk can be completed at the village level itself.

Fiscal Incentives: The incentives differ in different cases but in general 25% of the outlay (33.33 % for SC / ST/ farmers) as capital subsidy is provided to the eligible stakeholders.

Time Period: N/A

4E (End to End Energy Efficiency)

Launched In: September 2016  

Supervising Body: Small Industries Development Bank of India (SIDBI)

Industry Applicable: Sector-agnostic

Eligibility: MSME units in the manufacturing sector which are operational for a minimum of three years and have made cash profit in the last two years. The startup must not be a defaulter in any bank/FI. The startup must have undergone Detailed Energy Audit (DEA) by a technical agency with BEE certified Energy Auditors. In addition, the Detailed Project Report (DPR) must have been inspected by the EEC, SIDBI.

Overview: The scheme is a joint initiative of SME Technology Services Ltd. (ISTSL) and the World Bank. The primary objective is to put into practice energy efficiency measures on a back-to-back basis.

Fiscal Incentives:  The MSME unit is liable to pay only INR 30,000 and applicable taxes and the remaining fee is payable by SIDBI to auditors. A maximum of  90% of the project cost of a minimum loan amount of INR 10 Lakhs and the maximum loan amount of INR 150 Lakhs per entitled borrower can be granted under the 4E scheme.

Time Period: N/A.

Pradhan Mantri Mudra Yojana (PMMY)

Launched In: February 2016

Supervising Body: Micro Units Development and Refinance Agency Ltd. (MUDRA)

Industry Applicable: Sector-agnostic

Eligibility: Non–Corporate Small Business Segment (NCSB) which includes millions of proprietorship/partnership firms working as small manufacturing units.  The service sector units, shopkeepers, fruits/vegetable vendors, truck operators, food-service units, restore shops, machine operators, small industries, artisans, food processors, and others can apply for the loan. All forms of mechanized, trading and service sector workings can get a MUDRA loan.

Overview: MUDRA provides support to banks / MFIs for lending up to INR 10 Lakhs to micro units.

Fiscal Incentives: MUDRA offers the following incentives -

>Shishu: loans up to INR 50,000/- are covered

> Kishor:  loans above INR 50,000/- and up to INR 5 Lakhs are covered

> Tarun: loans above INR 5 Lakhs and up to INR 10 Lakhs are covered

Generally, loans up to INR 10 Lakhs are given without collateral. MUDRA ensures to meet the necessities of different segments.

Time Period: N/A