Government to Release Grants for Innovative Projects

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Government to Release Grants for Innovative Projects

February 9: The government is all set to provide grants to start-up companies. A cabinet decision to approve a work procedure on funding seed capital for innovative works has opened doors for the start-up companies to receive the government grant.

The government is preparing to provide 50 percent grant in the initial phase of innovative projects.

Joint Secretary at the Ministry of Finance Uttar Kumar Khatri informed that the grant will be included in the annual programme of the government from now onwards.

“The work procedure has already been endorsed by the cabinet so we will implement it immediately,” said Khatri.

A high level committee will call for proposals from innovative projects to provide the grants. The work procedure states that interested companies can submit their proposals within the criteria set by the committee.

Another committee of the National Planning Commission will verify if the project is innovative or not and recommend the finance ministry to provide grant if it considers the project fit to be funded.

Upon recommendation from the committee, the government will release the fund for the project through banking channel. The committee is also authorized to monitor the implementation of the project.

Finance Minister Yuba Raj Khatiwada during his annual budget announcement for the current fiscal year had pledged to provide grants under this heading. The finance ministry had sought support from the Ministry of Law to set up a “challenge fund” for this purpose. However, the law ministry did not support the initiative as the finance ministry decided to set up the fund without formulating laws. Therefore, this grant initiative taken on the basis of work procedure can be scrapped by the government whenever it wants.

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