Sustenance allowance at the rate of INR 15,000 per month per startup for a period of one-year upto 10 startups per incubator per year shall be given to startups at the idea stage. This incentive shall be given to only those startups founders which are financially needy. The criteria to identify needy startups shall be approved by PMIC.
It is important to support startups through early stage funding for maturing their ideas/ concepts. The objective is to encourage innovators to stimulate commercialization of their inventions and to help in validating Proof of Concept. The seed capital will be given in the form of Marketing Assistance upto INR 5 Lakhs per startup upto 10 startups per incubator per year to launch the Minimum Viable Product (MVP) in the market. The seed capital will be disbursed in milestone-based installments (e.g. 40% + 30% + 30%) in three tranches, the first being advance and remaining two on completing the milestones. On disbursement of first installment, Startups shall have to commit Key Performance Targets to the PIU on which they will be assessed before releasing the second and third installments of the grant.
An evaluation committee will be set up for approval of grant demands from startups and will be sanctioned/disbursed only on the recommendations of the evaluation committee. This committee will be led by the eminent experts from institutions such as STPI, IIT Kanpur, IIM Lucknow etc. on nomination basis or as decided by the PIU and would also consist of other eminent stakeholders from the startup ecosystem.
Note: Additional 50% shall be given to startups founded/co-founded by women/divyangjan/ transgender or startups having 50% or more women/ divyangjan/Transgender employees or startups having registered offices/operations in Purvanchal/ Bundelkhand regions for both Sustenance Allowance and Seed Capital/Marketing Assistance, or Startups founded/co-founded by persons from Economically Weaker Section (EWS).