NGIS Scheme: STPI Supports 28 Startups & Generates 288 Jobs

The Ministry of Electronics and Information Technology has introduced the Next Generation Incubation Scheme (NGIS) to promote the software product ecosystem in an effort to assist digital companies. The Software Technology Parks of India known as STPI. STPI has supports 28 Startups and provided financial assistance to five firms from the tricity under the programme which has led to the creation of 288 jobs.

The Ministry of Electronics and Information Technology responded to a question in the Lok Sabha by stating that in order to support the software product ecosystem and address a significant portion of the National Policy on Software Product (NPSP), 2019, the ministry has decided to promote NGIS in 12 cities including Mohali and Chandigarh.

The programme which was introduced two years ago, has a solution-oriented architecture and according to the ministry, intends to support 300 tech companies in 12 tier-2 and tier-3 cities with a total budget of Rs 95.03 crore.

According to a STPI spokesperson, the startups were chosen after following the proper procedures.

The UT Administration has yet to complete its beginning policy, nonetheless. The administration would establish a specific startup fund for the city ecosystem in accordance with the draught policy that was announced in September of last year.

The fund’s main goals would be to promote incubators, seed and scale-up investment for businesses, and other financial assistance to such organizations.
The administration would establish a seed fund in order to fill the funding shortfall for early-stage startups in the UT. A grant-in-aid-based seed fund, it would have a 10-crore beginning corpus and a 50-crore final corpus over the course of five years.

The administration would support a number of measures to include female entrepreneurs in the startup ecosystem. A woman-led startup would be characterized for incentive purposes as a startup having a woman as the founder, co-founder, or CXO. This policy calls for a least 33% of the seed fund interest-free loans to go to women-led enterprises.

In order to build cutting-edge incubators or renovate the ones that already exist, the administration would work in collaboration with higher education institutions (HEIs). The UT would support incubators that supported specific industries while taking into account the advantages and disadvantages of the city. The incubators will be urged to collaborate with top corporate organisations to organise yearly incubator competitions for regional entrepreneurs and innovators.

A number of startup mentors with experience in areas including capital raising, scaling, recruiting, product interface, business model development, fundraising methods, company registration, accounting and taxation, legal, and digital marketing would be appointed by the administration. By setting up ideation sessions, the mentors would also encourage budding entrepreneurs, particularly students.