I. STARTUP AGRI INCUBATION PROGRAMME (SAIP): Prototype to Minimum Viable Product: SABSWAVLABI

This seed stage funding will be available to incubatees who are incubated. Under this, there is provision of a financial assistance of a maximum of Rs. 25.0 lakhs to potential startups that have a Minimum Viable Product (MVP) based on innovative solutions/ processes / products/ services/ business models in agriculture and allied sector. The incubatees would be provided funds as per their genuine requirements and as per appraisal/evaluation of their business plans by the RC and the decision of the RC in this regard will be final. The RC will not be bound to give any reason in case an application for seed loan is rejected.
This support will assist the incubatees to launch their products/ services/ business platforms etc. into the market and help them to scale up their operations as well as to attain business viability at a faster pace.
This support will also facilitate them to attract investments from angel/venture capitalists or taking loans from commercial banks /financial institutions for further scaling-up of their business operations.

Objectives

1. To ensure timely seed support to deserving incubatees.
2. To enable translation of Minimum Viable Product (MVP) to marketable stage and scale up the product and business.
3. To provide a platform for faster experimentation and modification in their approaches or MVP based on innovative solutions/ processes / products/ services/ business models etc. for scaling up.

Eligibility Criteria

1. All incubatees will be eligible for this funding on the basis of consistent performance evaluated by RIC
2. The recipient should be a registered legal entity in India with a minimum of two months of residency at the R-ABI.
3. The recipient has to be an Indian start-up as per DIPP notification. This support is not meant for Indian Subsidiaries of MNCs/foreign companies.
4. A start-up supported once will not be eligible for applying for the subsequent round of seed support to any R-ABIs.

Selection Process of Incubatee for Seed Stage Funding

1. Each of the R-ABIs has to constitute a RKVY- RAFTAAR Incubation Committee (RIC).
2. During the selection process, R-ABI will take into consideration any other grant-in-aid funding received by the incubatee for same activity/product from other GOI ministries. A self-declaration from the incubatee about such funding will be mandatory.
3. After two months of residency of incubatees, RIC will evaluate the progress of the incubatee and based on their performance recommend them for seed stage funding to RC.
4. RC will further evaluate and recommend incubatees to the Nodal Division, DAC&FW for seed stage funding.
5. Nodal Division, DAC&FW, MoA & FW,GoI, New Delhi will approve and sanction the project of the incubatees based on recommendation of RC and release the first instalment of the grant-in-aid to the respective R-ABI for further disbursement to the incubatee.
6. The R-ABI would execute a legal agreement with the incubatee who is selected for the seed support and this agreement should be signed before release of first instalment of seed fund to the incubatee.
7. The terms of agreement with the incubatee start ups should be framed by the R-ABI linking with the progress milestones, monitoring norms etc. Subsequent disbursement schedules should be linked to the achievement of milestones by the incubatee.

Pattern of Funding Support and Release of Funds

1. A maximum of 20 startups per R-ABI will be supported under this scheme. Each selected startup will be provided a maximum limit of Rs. 25 Lakh as grant-in-aid under the scheme. (start-ups already receiving grants / financial support from any other source will not be eligible under RKVY-RAFTAAR)
2. For ensuring incubatee/ private participation in the programme, 15 percent on proportionate basis of the project cost will be borne by the incubatee. The remaining 85 percent of the project cost on proportionate basis up to a maximum of INR 25 lakhs will be borne under RKVY-RAFTAAR scheme which will be released in three instalment as mentioned below:

1. The first instalment of 40 % of the sanctioned project for seed support will be released after signing of the agreement between the incubator/ R-ABI and the incubatee.
2. The second instalment of 40% will be released to the incubatee after recommendation of RIC based on their performance and achievement of milestone as well as after utilization of 80% of previously released amount and receipt of provisional UC of 80% of already released funds.
3. The third instalment of 20% will be released to incubatee by the Nodal Division through R-ABIs after recommendation of RIC based on their performance and achievement of milestone as well as after utilization of 80% of previous released amount and receipt of provisional UC of 80% of already released funds.
4. A Demo Day would be organised for Investor pitch to showcase the matured product of the incubatee to investors for further facilitation of funding.

Broad Activities to be supported under Seed Stage Funding:

Expenses for the following broad activities would be supported under this programme:

1. Product Refinement/Testing and Trials/ Marketing launch
2. Expenses on data generation/data acquisition for ideas working on IT side/AI side
3. Fees for IP issues/one time technology licensing fees
4. Manpower for day to day operations
5. Day to day operational expenses like electricity bill, incubation charges etc.
6. Any other area/activity as deemed necessary and recommended by the RIC of R-ABIs.

II. AGRIPRENEURSHIP ORIENTATION PROGRAMME (AOP): Idea to Prototype: SABUMANG

The R-ABI shall execute an Agripreneurship Orientation Programme (AOP). This programme is aimed at providing an opportunity to students/ youth to work on their innovative ideas by imparting two months training cum hands on internship with other startups at the respective R-ABI. Guided by experienced and innovative startups, they will be able to understand business concepts/nuances, strategy and practical insights of specific industries or markets, challenges and strategies to resolve them.
After successful completion of the two months orientation programme, the R-ABI will facilitate incorporation of entities for all viable business ideas by the above mentioned interns. After that, these startups will be eligible for Idea/Pre-Seed Stage Funding.

Objectives

1. To nurture potential agripreneurs by providing training cum internship with other startups to provide them practical, technical and business insights.
2. To create and nurture a pipeline of agripreneurs for incubators
3. To make pursuing entrepreneurship related to innovative ideas an attractive career option among other available career choices.

Eligibility Criteria

1. The recipient should propose one innovative idea based on technology, service, business platforms etc. for increasing efficiency in agriculture and allied sector.
2. The recipients are expected to pursue their entrepreneurial aspirations full time.
3. The recipient should have an initial business plan/ proposal for the idea they intend to pursue.

Selection Process of Interns for Agripreneurship Orientation

1. The R-ABI shall announce the programme at the state/local level.
2. All applicants for this programme will apply as per the prescribed format (Annexure V).
3. The selection of agripreneurs that have an innovative idea based on technology, service, business platforms etc. and interest in pursuing their entrepreneurial aspirations full time, shall be done by the RIC.
4. Under this component, the R-ABI will select a batch of 30 agripreneurs that have a workable innovative idea.

Broad Activities

1. These young agripreneurs will receive up to 60 hours initial training along with hands on training cum internship with other R-ABI startups.
2. They will refine/ work on their innovative idea simultaneously.

Idea/ Pre-Seed Stage Funding

A stipend of Rs 10,000/- per month will be granted to these interns for two months during the hands on training period.
Under this, subsistence grant of a maximum of Rs. 05.0 lakhs will be provided to interns who have successfully completed the initial two months of agripreneurship orientation programme and are aspiring to convert their innovative idea based on technology, service, business platforms etc. into a prototype/ product.
The Startups supported for idea/pre-seed stage funding will be eligible for obtaining next stage of Seed Stage Funding after evaluation.

Eligibility Criteria

1. After successful completion of the initial two months of the agripreneurship orientation programme, interns will qualify for getting Idea/Pre-Seed Stage Funding.
2. The recipient should be registered for the incubation programme at the R-ABI for the entire duration of Idea/ Pre-Seed Stage Funding.
3. The recipient will register his/her company before the release of the grant or he/she has to be an Indian start-up as per DIPP notification.

Selection Process of Startups for Idea/ Pre-Seed Stage Funding

1. After successful completion of the initial two months of the agripreneurship orientation programme, the interested interns will make a presentation before RIC of their respective R-ABI. The RIC will evaluate interns on the basis of progress made on their innovative idea in the two months of agripreneurship orientation programme and recommend the interns to RC for their final evaluation.
2. The RC will evaluate and recommend the interns for Idea Stage Funding.
3. On the recommendation of RC, the first instalment of the grant-in-aid will be released by the Nodal Division to incubatees through the respective R-ABI.
4. The R-ABI would execute a legal agreement with the incubatee who is selected for the seed support and this agreement should be signed before the release of the first instalment of seed fund to the Incubatees. The terms of agreement with the incubatee startup should be framed by the R-ABI linking the progress milestones, monitoring norms etc.

Pattern of Funding Support and Release of Funds

1. A maximum of 20 idea stage startups per R-ABI will be supported under this scheme. Each selected startup will be provided a maximum limit of Rs 05.0 lakh as grant in aid under the scheme for working on their idea to convert it into a marketable product. The applicant incubatees would be provided funds as per their genuine requirements and as per appraisal/evaluation of their business plans by the RC and the decision of the RC in this regard will be final.
2. The RC will not be bound to give any reason in case an application for seed loan is rejected.In case, the incubatee is already receiving grant/financial support from any other source, he should disclose the same and the issue of grant under RKVY-RAFTAAR will be decided on a case to case basis by RC based on recommendation of the RIC.
3. For ensuring the incubatee / private participation in the programme, 10 percent of the project cost on a proportionate basis will be borne by the incubatee. The remaining 90 percent of the project cost on a proportionate basis up to a maximum of Rs. 05.0 lakhs will be borne under the RKVY- RAFTAAR scheme which will be released in two instalments as mentioned below:

1. a. The first instalment of 60 % of the amount of the sanctioned project for support under Idea Stage Funding will be released after signing of the agreement between the incubator/ R-ABI and the incubatee.
2. b. The final instalment of 40% will be released to the Incubatees by the Nodal Division through R-ABIs after recommendation of RIC and RC based on their performance and milestone achieved as well as after utilization of 80% of previously released amount and receipt of provisional UC of 80% of already released funds.

Broad Activities to be supported under Idea/ Pre-Seed Stage Funding

Expenses for the following broad activities would be supported under Idea/ Pre-Stage Funding:

1. Development of prototype/ product
2. Data generation/ acquisition for ideas working on IT side/AI side
3. Fees for technology commercialization and IP issues
4. Manpower for day to day operations
5. Day to day operational expenses like electricity bill, incubation charges etc.
6. Any other area/activity as deemed necessary and recommended by the RIC.