Lok Sabha Question No. 1230 (UNSTARRED), answered on 2025-02-11
Subject: Urban Startups under Credit Guarantee Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Brijmohan Agrawal

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

## LOK SABHA

UNSTARRED QUESTION NO. 1230. TO BE ANSWERED ON TUESDAY, THE 11 TH  FEBRUARY, 2025.

## URBAN STARTUPS UNDER CREDIT GUARANTEE SCHEME

## 1230.  SHRI BRIJMOHAN AGRAWAL:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) the  number  of  urban  startups  of  Chhattisgarh  benefitted  under  the  Credit Guarantee  Scheme  for  Startups  (CGSS)  and  the  Startup  India  Seed  Fund Scheme (SISFS) during the last three years and the current year, district-wise;
- (b) whether any specific measures have been taken by the Government to bring awareness about these schemes and increase outreach in the identified cities of Chhattisgarh;
- (c) if so, the details thereof;
- (d) the distribution of financially supported startups in the above cities, particularly in non-technical areas and the employment generated through them, regionwise;
- (e) whether any assessment has been made to evaluate the challenges to be faced by the startups in providing benefits of the schemes to the common people in these cities;
- (f) if so, the outcome thereof and the steps taken by the Government to address them; and
- (g) the details of the strategies adopted to ensure the sustainable development of these startups and monitoring mechanisms put in place to track their progress?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a): The  Startup  India  Seed  Fund  Scheme  (SISFS)  has  been  approved  for  the period of 4 years starting from 2021-22 with a corpus of Rs. 945 crore. The scheme provides financial assistance to eligible startups for proof of concept, prototype development, product trials, market entry and commercialization. The Experts Advisory Committee (EAC) of SISFS, evaluates and selects incubators for allocation of funds. The approved incubators select startups in accordance with the guidelines. SISFS is implemented from 1st April 2021.

As  on  31 st   December  2024,  213  incubators  have  been  selected  under  the Scheme with a total approved funding of Rs 902.74 crore and the approved incubators have selected 2,622 Startups for support under SISFS.

Specifically for the State of Chhattisgarh, 18 Startups have been selected by the selected incubators under SISFS for an approved amount of Rs. 2.03 crore as on 31 st  December 2024. The district-wise details of the Startups supported in the State of Chhattisgarh by the selected incubators during the last 3 years viz. 2022, 2023, and 2024 is provided below:

| District    | 2022                                   | 2022                                                  | 2023                                   | 2023                                                  | 2024                                   | 2024                                                  |
|-------------|----------------------------------------|-------------------------------------------------------|----------------------------------------|-------------------------------------------------------|----------------------------------------|-------------------------------------------------------|
| District    | No. of startups selected by incubators | Amount approved to Startups by incubators (Rs. Crore) | No. of startups selected by incubators | Amount approved to Startups by incubators (Rs. Crore) | No. of startups selected by incubators | Amount approved to Startups by incubators (Rs. Crore) |
| Bilaspur    | 1                                      | 0.2                                                   | -                                      | -                                                     | 1                                      | 0.00                                                  |
| Durg        | -                                      | -                                                     | 2                                      | 0.42                                                  | 4                                      | 0.34                                                  |
| Raipur      | 1                                      | 0.12                                                  | 3                                      | 0.44                                                  | 4                                      | 0.35                                                  |
| Rajnandgaon | -                                      | -                                                     | -                                      | -                                                     | 1                                      | 0.06                                                  |
| Total       | 2                                      | 0.32                                                  | 5                                      | 0.86                                                  | 10                                     | 0.75                                                  |

The  Credit  Guarantee  Scheme  for  Startups  (CGSS)  is  aimed  at  enabling collateral free loans to Startups through eligible financial institutions [Member Institutes  (MIs)]  such  as  Scheduled  Commercial  Banks,  All  India  Financial Institutions  (AIFI),  Non-Banking  Financial  Companies  and  Securities  and Exchange  Board  of  India  (SEBI)  registered  Alternative  Investment  Funds (AIFs),  to  support  eligible borrowers viz. entities recognised as 'Startups' by DPIIT.  CGSS  is  operationalized  by  the  National  Credit  Guarantee  Trustee Company (NCGTC)

Limited from 1st April 2023. As on 31 st  December 2024, 257 loans amounting to  Rs. 601.86 crore have been guaranteed for startup borrowers. There are currently no beneficiaries from the State of Chhattisgarh under the Scheme.

- (b) to (f): The Government maintains data with respect to the direct jobs created (selfreported) by entities which have been recognised as Startups. As a result of efforts undertaken as part of the Startup India initiative, 1,57,706 entities have been recognised as Startups by the Department for Promotion of Industry and Internal Trade (DPIIT) which have reportedly created over 17.2 lakh direct jobs as  on  31 st December 2024. Specifically in the State of  Chhattisgarh, 1,736 entities  have  been  recognised  as  Startups  by  DPIIT  which  have  reportedly created over 16,000 direct jobs.

To address certain aspects of accessibility, adoption, awareness, and capacity building during the course of implementation of the Schemes, several steps have been undertaken by the Government. All programs and Schemes under the Startup India initiative, including SISFS and CGSS, are implemented on a Pan-  India  basis  with  multiple  specific  outreach  and  awareness  measures undertaken to expand coverage including in the State of Chhattisgarh. Such measures  inter-  alia  include  capacity  building  and  handholding,  ecosystem development  and  international  linkages.  The  details  of  such  measures  are placed as Annexure-I.

- (g): The Experts Advisory Committee (EAC), under SISFS, is responsible for the overall  execution  and  monitoring  of  SISFS.  The  EAC evaluates  and  selects incubators for allocation of funds under the Scheme. Each selected incubator has an Incubator Seed Management Committee (ISMC), consisting of experts who  evaluate  and  select  startups  based  on  certain  parameters  outlined  in Scheme guidelines (as available online at https://dpiit.gov.in/startupindia/Startup-india- initiative).

The Management Committee (MC), under CGSS, is responsible for reviewing, supervising and  monitoring  the  functioning  of  CGSS.  The  MC  is  fully empowered to  appraise  the  performance  of  the  scheme.  The  MIs  evaluate credit applications by using prudent banking judgement and use their business discretion  /  due  diligence  in  selecting  commercially  viable  proposals  and conduct/monitor the account(s) of the borrowers with normal banking prudence, as outlined in  Scheme guidelines as available online at https://www.ncgtc.in//content/products//0/1700636150162185081.pdf

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (b) to (f) OF THE LOK SABHA UNSTARRED QUESTION 1230 FOR ANSWER ON 11.02.2025.

The details of various measures being undertaken to ensure that the benefits of the Startup India initiative, including SISFS and CGSS, are effectively reaching Startups across the country:

## 1.  Capacity Building and Handholding

Capacity building workshops are undertaken throughout the year across regions including non-metro cities under the States' Startup Ranking ('SRF') exercise to promote and handhold States and UTs in developing regional ecosystems and enabling them to leverage Schemes under the Startup India initiative.  Monitoring, capacity development, and handholding sessions are also conducted specifically for  various  stakeholders.  Specifically  for  incubators,  it  involves  capability  to provide  funding,  to  monitor  the  progress  of  startups  and  to  support  startups through  various  stages  of  development  under  SISFS.  With  a  view  to  build capacity of the lenders under CGSS and increase outreach, meetings are being held, virtually as well as physically, to clarify doubts and increase traction under the Scheme. For Startups, capacity building involves aspects such as exposure to  international,  national  and  regional  programs  for  their  holistic  development including  development  of  business  proposals,  pitching,  product  development, market access, etc.

## 2.  Outreach and Awareness

Outreach and awareness activities for Startups are organized across the country including in areas beyond metropolitan cities. These activities include encouraging entrepreneurs from non-metropolitan cities and enabling opportunities  for  funding  through  Schemes  such  as  SISFS  and  CGSS, incubation,  mentorship  and  business  linkages  in  collaboration  with  State/UT administrations. Various Startup showcases are also organised where Startups pitch their business proposals to investors and participate in capacity building activities.  The  programs  and  Schemes  implemented  under  the  Startup  India initiative are also propagated through various social media platforms.

## 3.  Ecosystem Development Events and Programs

Various national ecosystem development events and programs are held such as the  Startup  Mahakumbh,  which  fosters  innovation  and  entrepreneurship  by bringing  the  ecosystem  together  from  various  parts  of  the  country;  ASCEND (Accelerating Startup Caliber & Entrepreneurial Drive) sensitization workshops on startups and entrepreneurship are conducted across North Eastern States to support  upcoming  entrepreneurs  from  the  region;  and  the  Startup  India Innovation week is held around the National Startup Day i.e., 16th January, to celebrate  entrepreneurship  and  promote  innovation  with  stakeholders  from across India.

## 4.  Encouraging Ecosystem Collaboration

The Government launched the Startup India Hub portal for stakeholders of the entrepreneurial  ecosystem  in  India  to  discover  resources,  information,  and various benefits under the Startup India initiative on a common digital platform. This  portal  enables  various  programs  and  initiatives  to  be  accessed  digitally, improving accessibility for entrepreneurs and Startups even from non-metro cities and  regions.  Further,  the  Government  has  launched  the  Bharat  Startup Knowledge  Access  Registry  (BHASKAR)  which  is  a  platform  designed  to centralize, streamline, and enhance collaboration among key stakeholders within the  entrepreneurial  ecosystem,  which  is  enabling  Startups  and  entrepreneurs from non-metro cities and regions to connect with the larger Startup ecosystem.

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