PIB Summary- 19th April, 2021 | PIB (Press Information Bureau) Summary - UPSC PDF Download

Startup India Seed Fund Scheme

Context: Union Minister launched the Startup India Seed Fund Scheme.

The Startup India Seed Fund Scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialisation.
On February 5, 2021, the Government of India made an official announcement about the approval of SISFS. It has been approved for a period of four years and was implemented with effect from April 1, 2021.

About the SISF Scheme

• The Scheme aims to provide financial assistance to startups at the very initial stage of their project
• It has been approved for a time period of four years, starting from 2021-22
• Rs. 945 Crore corpus will be divided over the next 4 years for providing seed funding to eligible startups through eligible incubators across India
• It is expected that the Startup India Seed Fund Scheme shall help over 3600 startups in the country
• This scheme is in line with the Atmanirbhar Bharat Campaign launched in May 2020
• Seed Fund to an eligible startup by the incubator shall be disbursed as follows:
  • Up to Rs. 20 Lakhs as a grant for validation of Proof of Concept, or prototype development, or product trials
  • Up to Rs. 50 Lakhs of investment for market entry, commercialisation, or scaling up through convertible debentures or debt or debt-linked instruments

What is Seed Funding?

Seed funding or seed-stage funding is a very initial investment. Generally, investors often get an equity stake in exchange for the capital invested. In case the founders use their savings to start up a business, it is called bootstrapping. 

What is the need for Startup Seed Funding Scheme in India?

The Indian startup ecosystem suffers from capital inadequacy in the seed and ‘Proof of Concept’ development stage. The capital required at this stage often presents a make or break situation for startups with good business ideas.

Many innovative business ideas fail to take off due to the absence of this critical capital required at an early stage. If seed funding is offered to such promising cases, then they can have a multiplier effect in validation of business ideas of many startups, leading to employment generation in the country.

In India, a States’ Startup Ranking Framework has been set up with an aim to strengthen the support of States and UTs to holistically build their startup ecosystems. Get the latest report of the States’ Startup Ranking Framework at the linked article.

Who all are eligible for SISFS?

The eligibility criteria for a startup to apply under the Startup India Seed Fund Scheme shall be as follows:

• The startup must be recognised by the Department for Promotion of Industry and Internal Trade (DPIIT)
• It must have incorporated not more than 2 years ago at the time of application
• Preference would be given to startups creating innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas, textiles, etc.
• The startup should not have received more than Rs 10 lakh of monetary support under any other Central or State Government scheme
• Shareholding by Indian promoters in the startup should be at least 51% at the time of application to the incubator for the scheme

What is the Experts Advisory Committee (EAC) under SISFS?

DPIIT shall constitute an Expert Advisory Committee that will be responsible for the overall execution and monitoring of the Startup India Seed Fund Scheme. The EAC will evaluate and select incubators for allotment of Seed Funds, monitor progress and take all necessary measures for efficient utilisation of funds.

Members from different departments shall be appointed in EAC, which comprises:

• A Chairman
• Financial Advisor, DPIIT or his representative
• Additional Secretary/ Joint Secretary/ Director/ Deputy Secretary, DPIIT
• One Representative each from:
  • Department of Biotechnology (DBT)
  • Department of Science & Technology (DST)
  • Ministry of Electronics and Information Technology (MeiTY)
  • Indian Council of Agricultural Research (ICAR)
  • NITI Aayog
• At least three expert members nominated by Secretary, DPIIT from the startup ecosystem, investors, experts in the domain of R&D, technology development and commercialization, entrepreneurship and other relevant domains

India and Germany sign agreement

Context: India and Germany sign agreement on ‘Cities combating plastic entering the marine environment’.

Details

• The agreement was signed between the Ministry of Housing and Urban Affairs (MoHUA), GOI and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH India on behalf of the German Federal Ministry of Environment, Nature Conservation and Nuclear Safety.
• This project is envisaged under the contours of the Joint Declaration of Intent regarding cooperation in the field of ‘Prevention of Marine Litter’ signed between the Republic of India and the Federal Republic of Germany in 2019.
• The project, aimed at enhancing practices to prevent plastic entering the marine environment, will be undertaken at the national level (at MoHUA), select states (Uttar Pradesh, Kerala and Andaman & Nicobar Islands) and in the cities of Kanpur, Kochi and Port Blair for a period of three and a half years.

Background and significance

• Marine litter threatens ecosystems and adversely affects fishery and tourism industries around the globe.
• In addition to negative economic impact, it affects public health with increased concerns about micro-plastic and risk of particles entering the food chain.
• In recent times, the level of plastic waste that has accumulated in our oceans and marine ecosystems through the increasing production and use of durable synthetic materials has alarmed the public and policy makers alike.
• It is estimated that 15-20% of all plastics are entering oceans via riverine ecosystems of which 90% are contributed by 10 of the world’s most polluting rivers.
  • Two of these river systems are located in India, namely Ganga and Brahmaputra.
• Whilst accurate data on plastic waste and marine litter in particular is largely unavailable for most parts of the country, this project will support the Swachh Bharat Mission-Urban’s implementation with special focus on preventing plastic litter entering the rivers and water bodies at source.
• To this end, cities will be enabled to improve collection, segregation and marketing of plastic waste, to prevent plastic disposal to water bodies, and to improve handling of port and marine waste.
• This will be combined with data management and reporting systems, civil society involvement and increased cooperation with recyclers and the recycling industry through a digital platform.
• This is expected to foster improvements in segregation, collection, transportation, treatment and disposal of waste in municipalities, thereby establishing an efficient system, that ensures no waste finds its way into rivers or oceans.

Temples of Khajuraho

Context: Ministry of Tourism organises webinar on “Khajuraho – Temples of Architectural Splendour” under Dekho Apna Desh.

About the Khajuraho Historical Temples:

• Khajuraho Temples were built between 950-1050 CE by the Chandela Dynasty.
• The temples are categorised into three groups that is Eastern, Western and Southern.
• These temples display intricate & exceptional carvings and astounding architectural skill which makes Khajuraho one of the most popular tourist destinations among domestic as well as international visitors.
• Some of the most prominent temples here are Kandariya Mahadev Temple, Chaunsat Yogini Temple, Brahma Temple, Chitragupta Temple, Devi Jagdamba Temple, Lakshmana Temple, Matangeshwar Temple and Parsvanath Temple.

Prelims Facts

Centre for Land Warfare Studies (CLAWS)

• CLAWS is an independent think tank on strategic studies and land warfare in the Indian context.
• It is located in New Delhi.
• The mandate of CLAWS covers national security issues, conventional military operations and sub-conventional warfare.
• CLAWS disseminates the products of its research to its members, members of the armed forces, decision makers, members of the strategic community and interested civilians.
• It also seeks to contribute to developing a pro-active strategic culture for India.
• The objective of the organization is to convey policy recommendations based on interactions, consensus and research projects to policymakers and experts.
• It is affiliated with the Indian Army.
• CLAWS organises seminars and conferences, round-table discussions, workshops and guest lectures and undertakes research projects on national security related issues, especially those pertaining to land warfare.

ALH Mk III

• Advanced Light Helicopter (ALH) Mk III is an indigenously-built multirole helicopter with Shakti engine manufactured by Hindustan Aeronautics Limited (HAL).
• The Mk III version of the ALH has an all-glass cockpit with HAL’s Integrated Architecture Display System (IADS) and will be used for search and rescue special operations and coastal surveillance.
• The customized Mk-III is powered by “Shakti” (Safran Ardiden 1H1) engines.