Govt Approves Startup Guidelines for Technical Textiles

To promote innovation and facilitate the development of the startup ecosystem in the field of technical textiles, the Central Government has approved guidelines under which grant-in-aid of up to Rs. 50 lakhs would be provided to individuals and startups for a period of 18 months.

As per the availability of funds, the Ministry of Textiles will invite applications under the guidelines from time to time. The guidelines lay down the eligibility criteria applicable for individual applicants and startup companies, and the obligations of the associated incubators. It is mandatory for each proposal to have a project leader who will oversee the technical and managerial aspects of the project.

The Grant for Research and Entrepreneurship across Aspiring Innovators in Technical Textiles (GREAT) guidelines provide that a milestone-based funding pattern shall be followed, and the funds will be channelled through the associated incubators only. As an incentive for incubators, 10% of the total sanctioned amount would be provided to incubators.

Under the guidelines, startups are required to invest at least 10% of the total amount sanctioned for the project, in two equal instalments. The first instalment has to be made before the funds are released by the government and the second instalment should be made after the first milestone is achieved.

The intellectual property that results from the project funded under the guidelines will vest with the innovator or startup or jointly shared by the startup and incubator in accordance with the terms of their agreement.