The Indian Government has allocated Rs 126 crore towards the Startup India Seed Fund for the financial year 2021-22. The fund aims to provide financial assistance to early-stage startups in sectors such as water management, biotechnology, education, textiles, and defense. The fund has operated on April 1 and disbursed Rs 945 crore over a period of five years. It will back eligible startups and India Eincubators that will be evaluated by an xperts Advisory Committee (EAC) constituted by the Department for Promotion of Industry and Internal Trade (DPIIT). Under the scheme, the government will provide grants of up to Rs 5 crore to eligible incubators in three or more installments, based on the milestones they are able to achieve. The selected incubators will be able to disburse Rs 20 lakh for validation of proof of concept or prototype development, and up to Rs 50 lakh for market entry and commercialization. Incubators assisted by the state or central government that are at least two years old will be eligible, while those not supported by the government will need to be at least three years old.