Govt will offer up to Rs 50L grant for startups
To promote innovation in the niche technical textiles segment
New Delhi The government on Tuesday said it will provide a grant-in-aid of up to Rs 50 lakh for startups and individuals to promote innovation in the niche technical textiles segment.
The Startup Guidelines for Technical Textiles - Grant for Research and Entrepreneurship across Aspiring Innovators in Technical Textiles (GREAT) providing grant-in-aid of up to Rs 50 lakh for up to a period of 18 months has been approved, Rajeev Saxena, Joint Secretary, Ministry of Textiles, said. With a strong emphasis on developing the Startup Ecosystem in Technical Textiles, the guidelines focus on supporting individuals and companies to translate prototypes to technologies & products, including commercialisation, he told reporters here on the important developments in the National Technical Textiles Mission (NTTM).
We are going to support up to Rs 50 lakh in the form of grant-in-aid without any royalties or equity. Only a minimum of 10 per cent contribution has to be made by the incubatee. All of this is being done by incubators like IITs, NITs, Textiles Research Associations, and Centres of Excellence, among others,” Saxena said. Under the GREAT scheme, he said, the ministry envisages the research, which has already been conducted and some prototypes have been developed, to be made commercial. The official said that an online portal will be developed to invite applications within 10-15 days. The scheme will be commensurate with the National Technical Textiles Mission. We are going to support 100-150 startups.
The textile ministry will additionally provide 10 per cent of total grant-in-aid to incubators, according to an official release. To strengthen authenticity and commitment towards the project, Saxena said a minimum investment of 10 per cent of the funding from the incubatee in two equal instalments is mandated. The startup guidelines (GREAT) are aimed at providing the much-needed impetus for the development of the technical textiles startup ecosystem in India, especially in niche sub-segments such as bio-degradable and sustainable textiles, high-performance and speciality fibres, and smart textiles, among others.
As per the guidelines, a memorandum of understanding (MoU) will have to be signed between the selected startups and the incubator.