Lok Sabha Question No. 1834 (UNSTARRED), answered on 2023-07-31
Subject: Start-ups Scheme
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Subrata Pathak

## † 1834. SHRI SUBRAT PATHAK:

Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to state:

- (a)        the number of Start-ups having been sanctioned loans under Start-up scheme during the last three years;
- (b)        the details of the amount allocated under the said scheme, State/UT-wise; and
- (c)        the details of the industries/enterprises having been benefitted from this scheme, State/UT-wise?

## ANSWER

## MINISTER OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## (SHRI DHARMENDRA PRADHAN)

(a),  (b)  &  (c):    Under  Startup  India  initiative,  to  provide  capital  at  various  stages  of  business  cycle  of  a startup, the Government is implementing Fund of Funds for Startups (FFS) and Startup India Seed Fund Scheme (SISFS). Both the Schemes are implemented on a Pan-India basis. The funds under both the Schemes are  not  directly  extended  to  startups  by  the  Government  but  through  Alternative  Investment Funds  (AIFs)  in  case  of  FFS  and  through  incubators  in  case  of  SISFS  as  per  respective  operational guidelines of the Schemes.

The Fund of Funds for Startups Scheme was approved and established in June 2016 with a corpus of Rs 10,000  Crore,  with  contribution  spread  over  the  14 th and  15 th 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 Scheme is operationalized by Small Industries Development Bank of India (SIDBI).

Under FFS, the Scheme does not directly invest in startups, instead provides capital to SEBI-registered Alternative  Investment  Funds  (AIFs),  known  as  daughter  funds,  who  in  turn  invest  money  in  growing Indian  startups  through  equity  and  equity-linked  instruments.  SIDBI  has  been  given  the  mandate  of operating  this  Fund  through  selection  of  suitable  daughter  funds  and  overseeing  the  disbursal  of committed  capital.  AIFs  supported  under  FFS  are  required  to  invest  at  least  2  times  of  the  amount committed under FFS in startups.

The year-wise details of Fund of Funds for Startups as on 30 th April 2023 is placed at Annexure-I .

The Startup India Seed Fund Scheme has been approved for the period of 4 years starting from 2021-22 with a corpus of Rs. 945 Crore. The Scheme aims to provide financial assistance to startups for proof of concept,  prototype  development,  product  trials,  market  entry  and  commercialization.  The  Scheme  is implemented from 1 st April 2021.

Under  SISFS,  as  per  provisions  of  the  Scheme,  the  Government  has  constituted  an  Experts  Advisory Committee (EAC) which is responsible for the overall execution and monitoring of the SISFS. The EAC evaluates  and  selects  incubators  for  allocation  of  funds  under  the  Scheme.  As  per  provisions  of  the Scheme, the selected incubators shortlist the startups based on certain parameters outlined in Scheme guidelines.

The year-wise details of Startup India Seed Fund Scheme as on 30 th April 2023 is placed at Annexure-II .

## GOVERNMENT OF INDIA

## MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION NO. 1834

ANSWERED ON 31.07.2023

## START-UPS SCHEME

## Year-wise details of the amount allocated and utilized for AIFs under the Fund of Funds for Startups, as on 30 th April 2023 are as under:

| Calendar Year   | Amount Committed to AIFs by SIDBI (in Rs. Crore)   | Amount Disbursed/Drawdown to AIFs by SIDBI (in Rs. Crore)   |
|-----------------|----------------------------------------------------|-------------------------------------------------------------|
| 2016            | 396                                                | 6                                                           |
| 2017            | 435                                                | 99                                                          |
| 2018            | 920                                                | 168                                                         |
| 2019            | 1,372                                              | 517                                                         |
| 2020            | 1,254                                              | 542                                                         |
| 2021            | 1,892                                              | 843                                                         |
| 2022            | 1,711                                              | 1,225                                                       |
| 2023            | 1,141                                              | 531                                                         |
| Grand Total     | 9,121                                              | 3,931                                                       |

## Year-wise details of the amount allocated and utilized for incubators under the Startup India Seed Fund Scheme, as on 30 th April 2023 are as under:

| Calendar Year   |   Amount Approved to the Incubators (in Rs. Crore) |   Amount Disbursed to the Incubators (in Rs. Crore) |
|-----------------|----------------------------------------------------|-----------------------------------------------------|
| 2021            |                                             239.14 |                                               67.81 |
| 2022            |                                             280.88 |                                              143.82 |
| 2023            |                                              91.34 |                                               36.66 |
| Grand Total     |                                             611.36 |                                              248.29 |

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