3.2.5 Fiscal Support
(i)
The following shall be the fiscal support and its
quantum under this category:
| S. No. | Support Structure | # | Eligible Applicants |
Category of Support and its Quantum |
Mode of Support |
|---|---|---|---|---|---|
| 1 | Design Infrastructure Support (DIS) | (a) | Indian academic institutions and eligible startups and MSMEs | Centralized access to critical EDA Tools grid | Access will be provided to the eligible organizations as per the terms and conditions of the respective contracts with the vendor companies. |
| (b) | Centralized access to Multi-project Wafer (MPW) fabrication services | ||||
| (c) | All eligible applicants as per section 3 above | IP Cores | |||
| (d) | Campus Sub-System (CSS) | ||||
| (e) | Post-silicon validation services access | ||||
| 2 | Product Design Linked Incentive (P-DLI) | (a) | Eligible start-up MSMEs |
Seed funding
(up to ₹15 crore) |
Milestone-linked advance seed funding according to 50% of the project cost or ₹15 crore, whichever is lower, will be provided per application. |
|
Equity co-investment
(beyond ₹15 crore) |
Equity co-investment shall be provided to companies that have raised funding from Venture Capital (VC) and/or Private Equity (PE) investors, on terms and conditions similar to those offered by the VC/PE investors. | ||||
| (b) | Eligible Companies (as per section 3.2.3 above) other than start-up/MSMEs | Royalty financing | Royalty financing shall be provided to the companies on a co-investment basis, subject to the condition that the beneficiary company shall pay a royalty of 5% of net revenues of the product/technology until an amount equivalent to 1.5 times the financial support provided has been recovered. | ||
| Equity co-investment | Equity co-investment shall be provided to the companies that have raised funding from Venture Capital (VC) and/or Private Equity (PE) investors, on terms and conditions similar to those offered by the VC/PE investors. |
(ii) Exit option:
The beneficiary company may exit from any of the
funding mechanisms, either on its own direction
or upon ceasing to meet the eligibility or other
conditions under the Scheme, subject to the following:
(a) Seed funding or equity co-investment:
Companies that have availed seed funding and/or
equity co-investment support may exit by paying
an amount equivalent to the aggregate of the seed
funding provided and the prevailing market value
of the equity held by the Government, or 1.5 times
the total financial support provided, including
seed funding and equity co-investment, whichever
is higher.
(b) Royalty Financing:
Companies opting for royalty financing may exit
by repaying 1.5 times the financial support provided
if the exit occurs within four (4) years from the
date of the last disbursement, or 2 times the
financial support provided if the exit occurs
beyond four (4) years from the date of the last
disbursement.
