Governmental Subsidies

Are you a Government Agency looking for the right business ventures to provide subsidies and grants?

Governmental subsidies and grants are benefits provided by various government agencies to promote startups and encourage innovation & entrepreneurship. These benefits mostly accrue in the form of cash subsidies, exemptions from tax, various equity financing schemes, etc. They are provided to serve various social and economic purposes, like development of backward areas, boost to underperforming or new industries, creation of employment opportunities, to name a few.

These governmental subsidies and grants can take a number of forms like direct grants, repayable grants, soft loans, equity finance, free consultancy, greater access to resources, technology transfer, etc. They are provided based on certain pre-defined criteria such as – industry, geography, size of firm, revenue and so on. It is important to ensure that subsidies are provided to the right organizations and that no one is wrongly excluded.

Subsidies are important economic measures and their misuse can have severe repercussions on the economy. They may have detrimental distributional impacts wherein they only make the rich - richer and the poor - poorer. However, if properly implemented, subsidy programs can provide long term benefits to all sections of the economy.

Challenges

  • Identifying start-ups with feasible business plans - whose objectives conform to those of the government subsidy program
  • Ensuring that all the required eligibility criteria for providing the subsidy/grant are met
  • Ensuring that the money is utilized for the purpose for which such disbursals are made, and the program objectives are achieved

Solutions

  • Working closely with the start-ups helps us provide a list of organizations that fulfil all the eligibility criteria of the program
  • Monitoring the final use of all payments – to help ensure that they are utilized for the intended purpose
  • Providing competent and expert professionals to conduct proper due diligence prior to any disbursements
  • Help setting up a formal process for assessing and approving applications for subsidies and grants. This ensures that all the disbursals meet the required criteria

Benefits

  • Continuous support by our professionals ensure the most effective allocation of resources – thereby furthering economic progress
  • Greater likelihood of achieving the intended objectives of the government program

Sign up as a Government Subsidy Agency and learn more about projects that are best suited for your investment profile.