Assignment No.

11

Report on Government Agencies to Support Setting Up a Business Enterprise

Startup Scheme 1: Support for International Patent Protection in Electronics & Information
Technology (SIP-EIT)

Launched In: N/A

Headed by: Department of Electronics and Information Technology (DeitY)

Industry Applicable: IT Services, analytics, enterprise software, technology hardware, Internet of

Eligible For: MSMEs and technology startups in the ICTE sector.

Overview: The scheme, launched by the Indian government, aims to provide financial support to
MSMEs and technology startup units for international patent filing to encourage innovation and
recognise the value and capabilities of global IP along with capturing growth opportunities in the
ICTE sector.

Fiscal Incentives: Reimbursement will be limited to a total of INR 15 Lakhs per invention or 50% of
the total expenses incurred in filing and processing of the patent application upto grant, whichever is
lesser.

Time Period: The scheme is valid upto 30.11.2019.

To know more about this startup scheme by the Indian Government, click here.

Startup Scheme 2: Multiplier Grants Scheme (MGS)

Launched In: May 2013

Headed By: Department of Electronics and Information Technology (DeitY)

Industry Applicable: IT Services, analytics, enterprise software, technology hardware, Internet of

Eligible For: Startups, incubator/academia/accelerators. Should have projects in electronics &

Overview: The MGS aims to encourage collaborative R&D between industry and academics/R&D
institutions for development of products and packages.

Fiscal Incentives: The Government grants for individual industry would be limited to a maximum of
INR 2 Cr per project and the duration of each project should, preferably, be less than two years. For
industry consortiums, these figures would be INR 4 Cr and three years.

Time Period: 2-3 years

To know more about this startup scheme by the Indian Government, click here.

Startup Scheme 3: Software Technology Park (STP) Scheme

Launched In: N/A

Headed By: Software Technology Parks of India (STPI)

Eligible For: Software companies

Overview: The STPI has been set up with the objective of encouraging, promoting, and boosting
software exports from India. The STP Scheme, by the Indian government, provides statutory
services, data communications servers, incubation facilities, training and value-added services. The
scheme allows software companies to set up operations in convenient and inexpensive locations and
plan their investment and growth, driven by business needs.

Fiscal Incentives: Sales in the DTA up to 50% of the FOB value of exports is permissible and
depreciation on computers at accelerated rates up to 100% over 5 years is permissible.

Time Period: N/A

To know more about this startup scheme by the Indian Government, click here.

Startup Scheme 4: Electronic Development Fund (EDF) Policy

Launched In: N/A

Headed By: Department of Electronics and Information Technology (DeitY)

Industry Applicable: IT Services, analytics, enterprise software, technology hardware, Internet of

Eligible For: Startups pursuing innovation in technology sectors like electronics, IT, and
nanoelectronics.

Overview: The agenda was envisaged to develop the Electronics System Design and Manufacturing
(ESDM) sector to achieve “Net Zero Imports” by 2020. The EDF will help attract venture funds, angel
funds and seed funds towards R&D and innovation in the specified areas. It will help create a cell of
Daughter funds and Fund Managers who will be seeking good startups (potential winners) and
selecting them based on professional considerations.

Fiscal Incentives: The Electronic Development Fund (EDF) is set up as a “Fund of Funds” to
participate in professionally-managed “Daughter Funds” which, in turn, will provide risk capital to
companies developing new technologies. CANBANK Venture Capital Funds Ltd. (CVCFL) is the Fund
Manager for EDF.

Time Period: N/A

To know more about this startup scheme by the Indian Government, click here.

Startup Scheme 5: Modified Special Incentive Package Scheme (M-SIPS)

Launched In: July 2012

Headed By: Department of Electronics and Information Technology (DeitY)

Industry Applicable: Technology hardware, Internet of Things, aeronautics/aerospace & defence,

Eligible For: Startups in electronic manufacturing

Overview: The scheme aims to support IPR awareness workshops/seminars for sensitising and
disseminating awareness about Intellectual Property Rights among various stakeholders especially in
the E&IT sector.
Fiscal Incentives: This startup scheme by Indian government provides a capital subsidy of 20% in SEZ
(25% in non-SEZ) for units engaged in electronics manufacturing. It also provides for reimbursements
of CVD/ excise for capital equipment for the non-SEZ units. For some of the high capital investment
projects like the scheme provides for Central Taxes and Duties reimbursement of Central Taxes and
Duties.

Time Period: N/A

To apply online, one can click here.

Startup Scheme 6: Scheme to Support IPR Awareness Seminars/Workshops in E&IT Sector

Launched In: N/A

Headed By: Department of Electronics and Information Technology (DeitY)

Industry Applicable: IT services, analytics, enterprise software, technology hardware, Internet of

Eligibility: This startup scheme by the Indian government is eligible for educational institutes and
industry bodies like MAIT, ELCINA, CII, NASSCOM, FICCI, IESA, ASSOCHAM, etc., DeitY Society(ies) or
DeitY Autonomous Body(ies). It is mandatory that the organisation should be registered with the
Central Plan Scheme Monitoring System (CPSMS) portal, in order to apply for support for IP
Awareness Workshop(s)/Seminar(s).

Overview: The scheme provides IP (Intellectual Property) awareness workshops and seminars and
funding grants.

Fiscal Incentives: The organisations are provided with a grant of INR 2 Lakhs to INR 5 Lakhs. This
includes educational institutes – INR 2 Lakhs, industry bodies – INR 3 Lakhs and DeitY Society(ies) or
DeitY Autonomous Body(ies) – INR 5 Lakhs.

Time Period: The scheme is valid upto 30.11.2019.

To know more about this startup scheme by the Indian Government, click here.

Startup Scheme 9: Credit Guarantee

Launched In: N/A

Headed By: Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Industry: Sector-Agnostic

Eligibility: The scheme is applicable for new and existing Micro and Small Enterprises engaged in
manufacturing or service activity excluding retail trade, educational institutions, agriculture, self-
help groups (SHGs), training institutions, etc.

Overview: The scheme was launched by the Indian government to strengthen the credit delivery
system and facilitate the flow of credit to the MSE sector. Lending institutions majorly included
public, private, foreign banks along with regional rural banks, and SBI and its associate banks.

Fiscal Incentives: Both term loans and/or working capital facility up to INR 100 Lakhs per borrowing
unit are being provided. The guarantee cover provided is up to 75% of the credit facility up to INR 50
Lakhs (85% for loans up to INR 5 Lakhs provided to micro enterprises, 80% for MSEs
owned/operated by women and all loans to NER including Sikkim) with a uniform guarantee at 50%
for the entire amount if the credit exposure is above INR 50 Lakhs and up to INR 100 Lakhs.

Time Period: N/A

To know more about this startup scheme by the Indian Government, click here.

Startup Scheme 10: Performance & Credit Rating Scheme

Launched In: August 2016

Headed By: National Small Industries Corporation (NSIC)

Industry Applicable: Sector-agnostic

Eligibility: MSMEs registered in India are eligible to apply under this scheme. In May 2017, the
guidelines were revised which stated that a unit with a turnover of INR 1 Cr or above will be eligible
under the scheme. Now the case of rating needs to be recommended by a bank or NBFC.

Overview: The scheme aims to create awareness about the strengths and weaknesses of small-scale
industries. It was formulated by the Ministry of MSME under the Indian government in consultation
with various stakeholders i.e. Small Industries Associations & Indian Banks’ Association and various
rating agencies viz. CRISIL, ICRA, Dun & Bradstreet (D&B) and ONICRA.

Fiscal Incentives: The incentives are proportional to the turnover of the MSMEs. For instance, up to
INR 50 Lakhs, 75% of the rating fee or INR 25,000 (whichever is less) will be contributed under the
scheme. For turnover above INR 50 Lakhs to INR 200 Lakhs, 75% of the fee or INR 30,000 (whichever
is less) while for turnover more than INR 200 Lakhs, 75% of the fee or INR 40,000 (whichever is less).

Time Period: N/A

To know more about this startup scheme by the Indian Government, click here.

Startup Scheme 11: Raw Material Assistance

Launched In: N/A

Headed By: National Small Industries Corporation (NSIC)

Industry Applicable: Sector-agnostic

Eligibility: MSMEs registered in India are eligible to apply under this scheme.

Overview: This startup scheme aims at helping MSMEs by way of financing the purchase of raw
material (both indigenous & imported), thereby giving an opportunity to MSMEs to focus on
manufacturing quality products.

Fiscal Incentives: Under this scheme by the Indian government, MSMEs will be helped to avail
economics of purchases like bulk purchase, cash discount, etc. Also, all the procedures,
documentation and issue of letter of credit in case of imports will be taken care of. Security will be in
the form of Bank Guarantee from Approved/Nationalised Banks.

Time Period: MSMEs will get financial assistance for procurement of raw material up to 90 days. In
case outstanding dues are cleared within 270 days, micro enterprises will bear 9.5%- 10.5% interest
while small and medium enterprises will have to pay 10% to 11% interest.