We’re thrilled to know that the government has finally announced to provide seed funds to entrepreneurs with innovative ideas but we’re also excited to see how it’s implemented. Here’s the scoop.
The government has announced to provide a grant of Rs. 50 Lakh in accordance with the budget prepared for the Fiscal Year 2076/77 to businesses that use modern technology to produce highly innovative products/services using minimum time, cost and resources.
This is the first time the government has brought such a provision from the current fiscal year. In order to bring the policy into effect, the Ministry of Finance will be forming a selection committee to review the businesses and provide grants. The members will consist of a representative from The National Planning Commission appointed by the Vice-Chairman of the Commission, joint secretaries of the Ministry of Finance, Commerce, Supply, Education, Science, and Technology. Also, the joint secretary of the National Planning Commission will be the member secretary of the commission.
What kinds of businesses can apply for this fund?
Innovators with proper knowledge and training in the field of information technology, agriculture, energy, healthcare, tourism development, job creation can apply for this grant. Special focus will be given to small and medium-sized businesses operating or planning to operate domestically. Any business that receives this grant will have to be registered in PAN and the owner should not have been blacklisted.
What does the process look like?
A call for application will be made by the Nepali government in the National Daily twice and the selection committee will analyze the proposals based on the quality of the proposal in a month’s time. The areas that will be evaluated include the work they’re trying to do, its risks and returns, impact in the economy, required funding and the amount of grant money expected from the Government of Nepal.
How will businesses receive the grant?
The installment will be made in three phases. The first installment will be made right after the business starts to operate. The second installment will be made while the work is in progress and on-demand. The third and final installment will be made after the completion of the project.
In case, the government finds out that the grant is not being used or misused then the receiver will be liable to all legal actions related to it including paying back the given amount with interest. Furthermore, the business has to be registered in PAN before operating.
We just hope that everything is done systematically and nobody has to face difficulties obtaining them.
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