Technology push: 28 startups get STPI backing

Dushyant Singh Pundir

Chandigarh, February 15

With an aim to handhold tech startups, the Ministry of Electronics and Information Technology has launched the Next Generation Incubation Scheme (NGIS) to support software product ecosystem.

Under the scheme, the Software Technology Parks of India (STPI), Mohali, has extended support to 28 startups that have generated 288 employments and five from the tricity have received funds of Rs 25 lakh each.

In reply to a question raised in the Lok Sabha, the Ministry of Electronics and Information Technology stated to promote tech startups, the ministry has decided to promote NGIS in 12 cities, including Mohali/Chandigarh, to support software product ecosystem and address a significant portion of National Policy on Software Product (NPSP), 2019.

The scheme, which was launched two years ago, has solution-oriented architecture and aims to handhold 300 tech startups in 12 tier-2/3 cities with the total budget outlay of Rs 95.03 crore, stated the ministry.

An official of the STPI stated the startups were selected after following a due procedure.

However, the UT Administration is still to finalise its startup policy. As per the draft policy notified in September last year, the administration would set up a dedicated startup fund for the city ecosystem.

The primary objective of the fund would be to promote incubation centres, seed and scale up funding for startups and other fiscal support to such units.

To plug the gap for early-stage startup financing in the UT, the administration would set up a seed fund. It would be a grant-in-aid-based seed fund with an initial corpus of Rs 10 crore and a total corpus of Rs 50 crore over a period of five years.

The administration would facilitate various initiatives to make the startup ecosystem inclusive for women entrepreneurs. For the purpose of incentives, a woman-led startup would be defined as a startup with a woman as founder, co-founder or CXO. A minimum of 33% of the seed fund interest-free loans proposed in this policy would be dedicated to women-led startups.

The administration would partner with higher education institutions (HEIs) to set up the state-of-the-art incubators or upgrade the existing ones. The UT would encourage incubators that identified industries to be promoted, considering the strengths and limitations of the city. The incubators would be encouraged to partner with leading corporate organisations to run annual incubator challenges for local innovators and startups.

The administration would empanel a number of startup mentors with expertise in domains such as fund raising, scaling, recruitment and product interface, business model development, funding strategies, company registration, accounting and taxation, legal and digital marketing. The mentors would also provide support to aspiring entrepreneurs, especially students through organisation of ideation workshops.

25L each for five; 288 jobs generated

• Centre has decided to promote Next Generation Incubation Scheme in 12 cities, including Mohali/Chandigarh
• Scheme aims to handhold 300 tech startups in tier-2/3 cities with outlay of Rs 95.03 crore; five from tricity have got Rs 25L each
• The startups have been selected after due procedure, generating 288 jobs, says an official of STPI, Mohali
• UT is yet to finalise its startup policy, but its draft policy says it will set up a dedicated fund for city ecosystem