Lok Sabha Question No. 3223 (UNSTARRED), answered on 2023-08-09
Subject: Start up India Scheme for Small Business
Ministry: COMMERCE AND INDUSTRY
Asked by: Badruddin Ajmal

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

## LOK SABHA

UNSTARRED QUESTION NO. 3223. TO BE ANSWERED ON WEDNESDAY, THE 09 TH  AUGUST, 2023.

## START UP INDIA SCHEME FOR SMALL BUSINESS

## 3223.  SHRI M. BADRUDDIN AJMAL:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) the  details  of  the  schemes  under  'Start  up  India'  initiative  which  are  being implemented by the Central Government to support people who want to start their small business;
- (b) the number of beneficiaries of these schemes during the last five years, scheme, year and State-wise; and
- (c) the  details  of  the  funds  allocated  and  utilized  during  the  said  period,  year  and scheme-wise?

## 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) to (c): The Startup India initiative was launched by the Government on 16 th     January 2016 to  build  a  strong  ecosystem  for  nurturing  innovation,  startups  and  encouraging investments in the startup ecosystem of the country.

The flagship Schemes under the Startup India initiative, namely, Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) support startups at various stages of their business cycle  to  enable  startups  to  graduate  to  a  level  where  they  are  able  to  raise investments  from  angel  investors  or  venture  capitalists  or  seek  loans  from commercial banks or financial institutions.

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  Experts  Advisory Committee (EAC), under SISFS, evaluates and selects incubators for allocation of funds under the Scheme. The approved incubators select startups in accordance with the guidelines of the Scheme. SISFS is implemented from 1st April 2021.

The  number  of  beneficiaries  (incubators  approved  by  the  EAC)  along  with  the amount approved and disbursed under SISFS in 2021 and 2022 are as under:

|   Year |   Number Incubators Approved |   Total amount approved to the approved incubators (Rs. Crore) |   Total amount disbursed to the approved incubators (Rs. Crore) |
|--------|------------------------------|----------------------------------------------------------------|-----------------------------------------------------------------|
|   2021 |                           58 |                                                         244.4  |                                                           67.81 |
|   2022 |                           80 |                                                         280.88 |                                                          143.82 |

The State/UT-wise distribution of the beneficiaries are placed at Annexure-I .

The Fund of Funds for Startups (FFS) Scheme was approved and established in 2016 with a corpus of Rs 10,000 crore. The Scheme is operationalized by Small Industries Development Bank of India (SIDBI), provides capital to SEBI-registered Alternative Investment Funds (AIFs) who in turn invest in startups. AIFs supported under FFS are required to invest at least 2 times of the amount committed under FFS in startups.

The number of beneficiaries (AIFs supported under FFS) along with the amount committed and disbursed (drawdown) under FFS by SIDBI for the past five years viz. 2018, 2019, 2020, 2021 and 2022 are as under:

|   Year |   Number of AIFs Supported under FFS |   Total Amount Committed/Approved to the AIFs (Rs. Crore) |   Total Amount Disbursed/ Drawdownto the AIFs (Rs. Crore) |
|--------|--------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|
|   2018 |                                   14 |                                                    920    |                                                    168.41 |
|   2019 |                                   12 |                                                   1372.5  |                                                    517.19 |
|   2020 |                                   15 |                                                   1253.75 |                                                    542.22 |
|   2021 |                                   16 |                                                   1892.5  |                                                    842.98 |
|   2022 |                                   21 |                                                   1710.5  |                                                   1224.74 |

The State/UT-wise distribution of the beneficiaries are placed at Annexure-II .

Credit  Guarantee  Scheme  for  Startups  (CGSS)  is  implemented  for  providing credit  guarantees  to  loans  extended  by  Scheduled  Commercial  Banks,  NonBanking  Financial  Companies  and  Securities  and  SEBI  registered  AIFs.  It provides  credit  guarantee  up  to  a  specified  limit  against  loans  extended  by Member Institutions (MIs) to finance eligible DPIIT recognised startups. CGSS is operated by the National Credit Guarantee Trustee Company (NCGTC) Limited and  has  been recently operationalized from 1 st April 2023.

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ANNEXURE-I ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (c)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 3223 FOR ANSWER ON 09.08.2023. The State/UT-wise details of the number of incubators approved under SISFS in 2021 and 2022:

| S. No   | State/UT         |   Total number of approved incubators in 2021 |   Total number of approved incubators in 2022 |
|---------|------------------|-----------------------------------------------|-----------------------------------------------|
| 1       | Andhra Pradesh   |                                             1 |                                             1 |
| 2       | Assam            |                                             0 |                                             1 |
| 3       | Bihar            |                                             0 |                                             3 |
| 4       | Chhattisgarh     |                                             0 |                                             1 |
| 5       | Delhi            |                                             2 |                                             2 |
| 6       | Goa              |                                             3 |                                             1 |
| 7       | Gujarat          |                                             3 |                                            15 |
| 8       | Haryana          |                                             0 |                                             3 |
| 9       | Himachal Pradesh |                                             1 |                                             1 |
| 10      | Karnataka        |                                             9 |                                             5 |
| 11      | Kerala           |                                             3 |                                             2 |
| 12      | Madhya Pradesh   |                                             2 |                                             2 |
| 13      | Maharashtra      |                                             5 |                                            18 |
| 14      | Odisha           |                                             2 |                                             5 |
| 15      | Puducherry       |                                             1 |                                             1 |
| 16      | Punjab           |                                             1 |                                             2 |
| 17      | Rajasthan        |                                             5 |                                             4 |
| 18      | Sikkim           |                                             1 |                                             0 |
| 19      | Tamil Nadu       |                                             6 |                                             6 |
| 20      | Telangana        |                                             7 |                                             2 |
| 21      | Uttar Pradesh    |                                             4 |                                             4 |
| 22      | Uttarakhand      |                                             1 |                                             1 |
| 23      | West Bengal      |                                             1 |                                             0 |
|         | Grand Total      |                                            58 |                                            80 |

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ANNEXURE-II ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (c)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 3223 FOR ANSWER ON 09.08.2023. The State/UT-wise details of the number of AIFs supported under FFS over the past

## five years viz. 2018, 2019, 2020, 2021 and 2022:

| S. No.   | State/UT    |   Total number of supported AIFs (2018) |   Total number of supported AIFs (2019) |   Total number of supported AIFs (2020) |   Total number of supported AIFs (2021) |   Total number of supported AIFs (2022) |
|----------|-------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|
| 1.       | Assam       |                                       0 |                                       0 |                                       0 |                                       0 |                                       0 |
| 2.       | Delhi       |                                       0 |                                       3 |                                       3 |                                       0 |                                       1 |
| 3.       | Gujarat     |                                       0 |                                       0 |                                       0 |                                       0 |                                       0 |
| 4.       | Haryana     |                                       1 |                                       0 |                                       0 |                                       0 |                                       1 |
| 5.       | Karnataka   |                                       3 |                                       3 |                                       4 |                                       3 |                                       5 |
| 6.       | Maharashtra |                                       9 |                                       5 |                                       8 |                                      11 |                                      11 |
| 7.       | Tamil Nadu  |                                       1 |                                       0 |                                       0 |                                       2 |                                       2 |
| 8.       | Telangana   |                                       0 |                                       1 |                                       0 |                                       0 |                                       1 |
|          | Grand Total |                                      14 |                                      12 |                                      15 |                                      16 |                                      21 |

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