Lok Sabha Question No. 2508 (UNSTARRED), answered on 2022-12-21
Subject: Startup India Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: Rajiv Pratap Rudy

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 2508. TO BE ANSWERED ON WEDNESDAY, THE 21 ST   DECEMBER, 2022.

## STARTUP INDIA SCHEME

## 2508.  SHRI RAJIV PRATAP RUDY:

Will the Minister of COMMERCE AND INDUSTRY

## be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the details and number of startup proposals received by the Government under the startup India scheme and the number of entrepreneurs given financial assistance under this scheme in the last three years, State/UT-wise;
- (b) the details and the number of startups that have been given financial assistance under the Startup India scheme;
- (c) whether the bureaucratic procedure prescribed for scrutinizing funding proposals is a big hindrance for the success of the said scheme and if so, the details thereof; and
- (d) the details of the measures taken by the Government to review the above said procedure to help more startups get approvals?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) & (b): The Government with an intent to build a strong ecosystem for nurturing innovation, startups and  encouraging  private investments in startup ecosystem of the country launched Startup India initiative on 16th January 2016.

In order to meet the objectives of the initiative, the Government unveiled an Action Plan for Startup India that laid the foundation of Government support, schemes and incentives envisaged to create a vibrant startup ecosystem in the country. The Action Plan comprises of 19 action items spanning across areas  such  as  'Simplification  and  handholding',  'Funding  support  and incentives' and 'Industry-academia partnership and incubation'.

Under Startup India Initiative, entities are recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) as startups as per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th February 2019. 84,012 entities have been recognised as startups from across the country by the DPIIT as on 30th November 2022.

Under the Startup India initiative, Fund of Funds for Startups (FFS) Scheme, Startup India Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) are implemented to provide capital at various stages of business cycle of a startup.

The  Fund  of  Funds  for  Startups  (FFS)  Scheme  was  approved  and established  in  2016  with  a  corpus  of  Rs  10,000  crore,  with  contribution spread  over  the  14th  and  15th  Finance  Commission  cycle  based  on progress of implementation, to provide much-needed boost to the Indian startup ecosystem and enable access to domestic capital. The FFS does not directly invest into startups. It invests into SEBI-registered Alternative Investment Funds (AIFs), who in turn make investments into startups.

Rs. 7,528 crore has been committed to 93 AIFs under FFS as on 30 th November 2022. These AIFs in turn have committed investments in 773 startups. State-wise and year-wise details of startups supported under FFS in the last three years are placed at Annexure-I.

The Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials,  market  entry  and  commercialization.  This  would  enable  these startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions. The funds under the Scheme are released to startups through approved incubators. Rs. 945 crore has been allocated under the Scheme for period of 4 years starting from 2021-22. The funds are released to startups through approved Incubators.

Rs. 455.25 crore has been approved to 126 incubators and as the Scheme was launched in the Financial Year 2021-22, about 650 startup applications have been approved by these incubators for financial assistance as on 30th November 2022. State-wise and year-wise  details  of  startups  supported under SISFS is placed at Annexure II .

The Government has also established the Credit Guarantee Scheme for Startups  for  providing  credit  guarantees  to  loans  extended  to  DPIIT recognized startups  by  Scheduled  Commercial  Banks,  Non-Banking Financial Companies (NBFCs) and Venture Debt Funds (VDFs) under SEBI registered  AIFs.  CGSS  is  aimed  at  providing  credit  guarantee  up  to  a specified  limit  against  loans  extended  by  Member  Institutions  (MIs)  to finance eligible borrowers viz. DPIIT recognised startups. The Scheme has been  notified  in  the  current  financial  year  only  i.e.  FY  2022-23  and  is implemented on a pilot basis.

- (c) & (d): No Sir. The Schemes mentioned in response to parts (a) & (b), as above, have  well  defined  guidelines  and  institutional  framework  which  include eligibility criteria, selection process, and evaluation committees comprising of subject matter experts from the ecosystem, and monitoring and review mechanisms.

*******

## ANNEXURE REFERRED TO IN  REPLY TO PARTS (a) & (b)  OF THE LOK SABHA UNSTARRED QUESTION NO. 2508 FOR ANSWER ON 21.12.2022.

## A) Year-wise distribution of startups supported during last 3 financial years under FFS as on 30 th  November 2022 is as under:

| Financial Year                      |   No. of Startups |
|-------------------------------------|-------------------|
| FY 2019-20                          |               120 |
| FY 2020-21                          |                86 |
| FY 2021-22                          |               156 |
| FY 2022-23 (up to 30 November 2022) |               191 |

## B) State-wise distribution of startups supported under FFS as on 30 th  November 2022 is as under

| S.No   | Name of           | State/UTNo. of Startups   |   State/UTNo. of Startups |
|--------|-------------------|---------------------------|---------------------------|
| 1      | Karnataka         |                           |                       235 |
| 2      | Maharashtra       |                           |                       173 |
| 3      | Delhi             |                           |                       136 |
| 4      | Haryana           |                           |                        60 |
| 5      | Tamil Nadu        |                           |                        28 |
| 6      | Telangana         |                           |                        20 |
| 7      | Uttar Pradesh     |                           |                        20 |
| 8      | Madhya Pradesh    |                           |                        16 |
| 9      | Gujarat           |                           |                        15 |
| 10     | Assam             |                           |                        14 |
| 11     | Kerala            |                           |                        14 |
| 12     | Rajasthan         |                           |                        13 |
| 13     | West Bengal       |                           |                        10 |
| 14     | Manipur           |                           |                         6 |
| 15     | Bihar             |                           |                         3 |
| 16     | Odisha            |                           |                         2 |
| 17     | Andhra Pradesh    |                           |                         1 |
| 18     | Arunachal Pradesh |                           |                         1 |
| 19     | Chandigarh        |                           |                         1 |
| 20     | Chhatisgarh       |                           |                         1 |
| 21     | Pondicherry       |                           |                         1 |
| 22     | Punjab            |                           |                         1 |
| 23     | Tripura           |                           |                         1 |
| 24     | Uttarakhand       |                           |                         1 |
|        | Total             |                           |                       773 |

********

## ANNEXURE REFERRED TO IN  REPLY TO PARTS (a) & (b)  OF THE LOK SABHA UNSTARRED QUESTION NO. 2508 FOR ANSWER ON 21.12.2022.

## A) Year-wise list of startups supported under SISFS (Scheme made operational in FY 2021-22) as on 30 th  November 2022 is as under:

| Financial Year                      |   Number of Startups Selected on the Portal |
|-------------------------------------|---------------------------------------------|
| FY 2021-22                          |                                         304 |
| FY 2022-23 (up to 30 November 2022) |                                         352 |

## B) State-wise distribution of startups supported under SISFS as on 30 th  November 2022 is as under

| State/ UT Name    |   Number of Startups Selected as per the SISFS Portal |
|-------------------|-------------------------------------------------------|
| Andhra Pradesh    |                                                     8 |
| Arunachal Pradesh |                                                     1 |
| Assam             |                                                     7 |
| Bihar             |                                                    12 |
| Chandigarh        |                                                     4 |
| Chhattisgarh      |                                                     3 |
| Delhi             |                                                    32 |
| Goa               |                                                    12 |
| Gujarat           |                                                    49 |
| Haryana           |                                                    29 |
| Himachal Pradesh  |                                                     3 |
| Jammu and Kashmir |                                                     1 |
| Jharkhand         |                                                     3 |
| Karnataka         |                                                   126 |
| Kerala            |                                                    22 |
| Madhya Pradesh    |                                                    34 |
| Maharashtra       |                                                   104 |
| Manipur           |                                                     2 |
| Meghalaya         |                                                     1 |
| Odisha            |                                                    13 |
| Puducherry        |                                                     4 |
| Punjab            |                                                     4 |
| Rajasthan         |                                                    18 |
| Sikkim            |                                                     2 |
| Tamil Nadu        |                                                    51 |
| Telangana         |                                                    46 |
| Uttar Pradesh     |                                                    44 |
| Uttarakhand       |                                                     5 |
| West Bengal       |                                                    16 |
| Grand Total       |                                                   656 |