What is Startup Agri Business Incubation Programme (SAIP) - By Egniol

What is Startup Agri Business Incubation Programme (SAIP)

Startup Agri Business Incubation Programme (SAIP)

The Rashtriya Krishi Vikas Yojana: Remunerative Approaches to Agriculture and Allied Sector Rejuvenation is launching the CCS NIAM Centre for Innovation, Entrepreneurship & Skill Development “Startup Agri Business Incubation Programme (SAIP)” (RKVY-RAFTAAR). New agribusinesses are encouraged to apply for integrated incubation support, which includes business mentoring, technical assistance, access to domain experts, marketing, and networking opportunities.

Under the What is Startup Agri Business Incubation Programme (SAIP), start-ups with minimum viable products (MVPs) based on innovative solutions, processes, products, services, and business models in the agriculture and allied sector may receive up to Rs. 25 Lakh in grant-in-aid, provided they are selected by the RKVY-RAFTAAR Selection and Monitoring Committee (RC)

How does SAIP work?

Start-ups with a minimum viable product (MVP) based on innovative solutions, processes, products, services, and business models in the agriculture and allied sector are eligible for seed stage funding of up to Rs. 25 lakhs.

The maximum amount of money that can be contributed to a seed fund is 25 million rupees. The RKVY-RAFTAR, Selection and Monitoring Committee’s (RC) decision on how much funding each applicant incubatee receives is final, and it will be based on the incubatees’ actual needs and the quality of their business plans. When a seed loan application is denied, the RC is not required to provide a justification.

The incubates will benefit from this aid because it will speed up the process of bringing their products, services, business platforms, etc. to market and expanding their operations to the point where they can become financially viable. They will be able to scale their operations to a larger scale with the help of angel/venture capitalist investments or commercial bank/financial institution loans made possible by this assistance.

What is the selection process for SAIP?

What is Startup Agri Business Incubation Programme (SAIP) - By Egniol

A. The potential incubates will be selected by the NIAM Centre of Excellence Incubation Committee (CIC) according to selection criteria.

B. CIC will consider other grant-in-aid funding the incubatee has received for the same activity/product from other GOI ministries during the selection process. The incubatee must make a public statement about whether or not they intend to pursue external funding.

C. After an incubatee has been in residence for two months, CIC will assess the company’s development and, if successful, recommend seed stage funding from the RC.

D. RC will conduct extra research and make funding recommendations to the Nodal Division, DAC&FW for the incubatees.

E. Once the CIC has recommended an incubatee’s project for approval, the Nodal Division of DAC&FW will release the first instalment of the grant-in-aid to the CIC, who will then disburse it to the incubatee.

F. Prior to the first seed fund instalment being released to the incubatee, the CCS NIAM will execute a legal agreement with the incubatee who has been selected for the seed support.

G. The CCS NIAM should draft the terms of agreement with the incubatee startup, including the milestones for progress, monitoring standards, etc. The incubatee’s progress toward their goals should be reflected in the timing of future disbursements.

How will you receive funds under SAIP?

What is Startup Agri Business Incubation Programme (SAIP) - By Egniol

Grants can be distributed in one of two ways, depending on which option is selected under this programme:

A. A grant-in-aid up to the maximum of Rs. 25 Lakh will be awarded to each qualifying startup. To put it another way, (startups already receiving grants / financial support from any other source will not be eligible under RKVY- RAFTAAR.)

B. The incubatee will be responsible for 15% of the project cost on a prorated basis in order to guarantee incubatee/private participation in the programme. Funding for the remaining 85% of the project’s total cost, up to a maximum of INR 25 lakhs, will be provided by the RKVY-RAFTAAR scheme in three equal instalments.

1. Upon agreement signing between the incubator and the incubatee, the first 40% of the approved project’s seed support will be released.

2. Following CIC’s recommendation based on the incubatee’s performance and achievement of milestones, and following the incubatee’s utilisation of 80% of the previously released amount and receipt of a provisional UC (Utilisation Certificate), the second instalment of 40% will be released.

3. After 80% of the previously released amount has been used and provisional UC for the remaining 20% has been received, the Nodal Division will release the remaining 20% to the incubatee through the incubator based on the recommendation of the RIC based on the performance and achievement of milestones.

This is everything you need to know about SAIP, furthermore, if you need to apply and avail the benefits of the scheme, then Egniol (The Best Startup Consultant In India) is your one-stop destination. We, at Egniol, not only assist you with applying for this scheme, but we also assist you with looking and applying for several other government schemes that benefit you. 

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