Assignment 7

Visit a bank/financial institution to inquiry about funding scheme for small scale
enterprices
The Indian government has introduced over 50+ startup schemes in past few years. Each
startup scheme is missioned towards boosting the Indian startup ecosystem.
Consider this. Close to 4,400 technology startups exist in India and the number is expected to
reach over 12,000 by 2020. India is also at third place behind US and Britain in terms of the
number of startups. Furthermore, in line with its global counterparts, India has its own billion
dollar club to boast about. This includes startups like Flipkart, Snapdeal, Ola, InMobi, Hike,
MuSigma, Paytm, Zomato, and Quikr. With the next $100 Mn funding raise, fintech startup
MobiKwik too looks to join the unicorn club.

 Startup Scheme 1: Support for International Patent Protection in Electronics &

Information Technology

Headed by: Department of Electronics and Information Technology (DeitY)

Industry Applicable: IT Services, analytics, enterprise software, technology hardware,

Internet of Things, AI.

Eligible For: MSMEs and technology startups in the ICTE sector.

Overview: The scheme, launched by the Indian government, aims to provide financial
support to MSMEs and technology startup units for international patent filing to encourage
innovation and recognise the value and capabilities of global IP along with capturing growth
opportunities in the ICTE sector.

Fiscal Incentives: Reimbursement will be limited to a total of INR 15 Lakhs per invention or
50% of the total expenses incurred in filing and processing of the patent application upto
grant, whichever is lesser.

 Startup Scheme 2: Multiplier Grants Scheme (MGS)

Launched In: May 2013

Headed By: Department of Electronics and Information Technology (DeitY)

Industry Applicable: IT Services, analytics, enterprise software, technology hardware,

Internet of Things, AI.

Eligible For: Startups, incubator/academia/accelerators. Should have projects in electronics &

information technology.

Overview: The MGS aims to encourage collaborative R&D between industry and
academics/R&D institutions for development of products and packages.
Fiscal Incentives: The Government grants for individual industry would be limited to a
maximum of INR 2 Cr per project and the duration of each project should, preferably, be less
than two years. For industry consortiums, these figures would be INR 4 Cr and three years.

Time Period: 2-3 years

 Startup Scheme 3: Software Technology Park (STP) Scheme

Launched In: N/A

Headed By: Software Technology Parks of India (STPI)

Industry Applicable: IT services, fintech, enterprise software, analytics, AI.

Eligible For: Software companies

Overview: The STPI has been set up with the objective of encouraging, promoting, and
boosting software exports from India. The STP Scheme, by the Indian government, provides
statutory services, data communications servers, incubation facilities, training and value-
added services. The scheme allows software companies to set up operations in convenient
and inexpensive locations and plan their investment and growth, driven by business needs.

Fiscal Incentives: Sales in the DTA up to 50% of the FOB value of exports is permissible and
depreciation on computers at accelerated rates up to 100% over 5 years is permissible.

Time Period: N/A

 Startup Scheme 4: Electronic Development Fund (EDF) Policy

Launched In: N/A

Headed By: Department of Electronics and Information Technology (DeitY)

Industry Applicable: IT Services, analytics, enterprise software, technology hardware,

Internet of Things, AI, nanotechnology.

Eligible For: Startups pursuing innovation in technology sectors like electronics, IT, and
nanoelectronics.

Overview: The agenda was envisaged to develop the Electronics System Design and
Manufacturing (ESDM) sector to achieve “Net Zero Imports” by 2020. The EDF will help
attract venture funds, angel funds and seed funds towards R&D and innovation in the
specified areas. It will help create a cell of Daughter funds and Fund Managers who will be
seeking good startups (potential winners) and selecting them based on professional
considerations.

Fiscal Incentives: The Electronic Development Fund (EDF) is set up as a “Fund of Funds” to
participate in professionally-managed “Daughter Funds” which, in turn, will provide risk
capital to companies developing new technologies. CANBANK Venture Capital Funds Ltd.
(CVCFL) is the Fund Manager for EDF.
Time Period: N/A

 Startup Scheme 5: Modified Special Incentive Package Scheme (M-SIPS)

Launched In: July 2012

Headed By: Department of Electronics and Information Technology (DeitY)

Industry Applicable: Technology hardware, Internet of Things, aeronautics/aerospace &

defence, automotive, non-renewable energy, renewable energy, green technology and
nanotechnology.

Eligible For: Startups in electronic manufacturing

Overview: The scheme aims to support IPR awareness workshops/seminars for sensitising
and disseminating awareness about Intellectual Property Rights among various stakeholders
especially in the E&IT sector.

Fiscal Incentives: This startup scheme by Indian government provides a capital subsidy of
20% in SEZ (25% in non-SEZ) for units engaged in electronics manufacturing. It also
provides for reimbursements of CVD/ excise for capital equipment for the non-SEZ units. For
some of the high capital investment projects like the scheme provides for Central Taxes and
Duties reimbursement of Central Taxes and Duties.

Conclusion

Hence we conclude that there are different funding schemes are available for entrepreneurs
for small scale of enterprises.
 MVP's RSM Polytechnic, Nashik

Assignment 8

Aim: Compile the info from financial agencies that will help you setup your
business enterprise.

Non-Banking Financial Companies (NBFC) are establishments that provide

financial services and banking facilities without meeting the legal definition of a
Bank. They are covered under the Banking regulations laid down by the
Reserve Bank of India and provide banking services like loans, credit facilities,
TFCs, retirement planning, investing and stocking in money market.
These organizations play a crucial role in the economy, offering their services
in urban as well as rural areas, mostly granting loans allowing for growth of
new ventures.

Shriram Transport Finance Company Limited

Transport Finance Company Limited focuses on funding commercial and
business vehicles, besides others. The company was founded in 1979 and has
been offering funding services for Light Duty Trucks, Heavy Duty Trucks, Mini
Trucks, Passenger Vehicles, Construction Vehicles and Farm Equipments. The
company’s specialisation is in general insurance, mutual funds, common assets,
stock broking and general protection.

Bajaj Finance Limited

Bajaj Finance Limited was founded in 2007 and is a unit of Bajaj Holdings
and Investments. It offers loans to doctors for career enhancement, home loans,
gold loans, individual Loans, business and entrepreneur loans and is an
extremely popular finance company. Apart from these, Bajaj Finserv also
provides services like wealth advisory, lending money and general insurance. It
has over 1400 branches across the country with more than 20000 employees.

L & T Finance Limited

L & T Finance Limited is a strong player in the non banking financial sector
and was established in 1994. Headquartered in Mumbai, L & T offers funding
services to different sectors like trade, industry, agriculture, Commercial
Vehicle loans, Individual Vehicle loans, and corporate and rural loans. The

Roll no. 10
 MVP's RSM Polytechnic, Nashik

company caters to more than 10 lakh people. In 2010, L & T was awarded the
“Company of the year” in the Economic Times awards.

Cholamandalam
Cholamandalam Investment and Finance Company Limited (Chola), was
incorporated in 1978 as the financial services arm of the Murugappa Group.
Chola started as an equipment financing company and has surged ahead as a
complete financial services provider offering all kinds of services like - vehicle
finance, home loans, home equity loans, SME loans, investment advisory
services, stock broking and a host of other financial services to customers.
Chola has 725 branches across India with assets under management above INR
35,000 Crores.

HDB Finance Services

HDB Financial Services is operated by India’s largest private sector HDFC
Bank. It offers a variety of secured and non-secured financial loans through a
network of more than 1,000 branches in 22 Indian states and 3 Union
Territories. It provides secured and unsecured loans, including personal and
business loans, doctor's loans, auto loans, gold loans, new to credit loans,
enterprise business loans, consumer durables loans, construction equipment
loans, new and used car loans, equipment loans, and tractor loans. The company
operates through Lending Business and BPO Services segments. It is considered
the fastest growing NBFC in India today.

Conclusion: Hence, we compiled the info from financial agencies that will help
us setup our business enterprise.

Roll no. 10