െചറുകിട കർഷക കാർഷിക വ�ാപാര കൺേസാർഷ�ം

േകരളതിരുവന�പുരം

Small Farmers Agri business

Consortium (SFAC Kerala)

SUPPORT TO AGRI START-UPS AND AGRIBUSINESS

INCUBATORS 2020 – 21

Online Applications are invited through www.sfackerala.org

The last date of online application is 15-10-2020

Apply with pdf copy of Aadhar & Business Plan

Contents

i) Operational Guidelines Page: 1-21.

ii) G.O (Rt) No-628/2020/AGRI Dated 02-07-

2020.Page: 22-24.

For any query or support please contact

Karshika Vivara Sanketham

Toll Free No: 1800-425-1661

8am-8 pm on all days (Except National

Holidays)

Office No: 0471-2742110

1

Operational Guidelines

SUPPORT TO AGRI START-UPS AND AGRIBUSINESS INCUBATORS

2020 – 21

1. About SFAC Kerala

Small Farmers Agribusiness Consortium (SFAC) Kerala is an organization

under the Department of Agriculture Development and Farmer’s Welfare ,

Government of Kerala working for the promotion of agribusiness to the benefit of

farmers and entrepreneurs by providing necessary linkages for establishment and

running of successful agribusiness.

The Kerala SFAC was established as a society registered under the

Travancore Cochin Literary Charitable Societies Registration Act on 8th March

1995 with a Memorandum of Association and Article of Association incorporating

provisions outlined in the concept paper of SFAC. The area of operation of SFAC,

Kerala covers the entire state of Kerala. The primary objective of SFAC is to

facilitate production, processing and marketing of agricultural commodities in the

small farm sector by fostering group activities on a sustainable basis. This is to be

achieved through:

i. By catalyzing agro- industrial ventures in the State

ii. By promoting, assisting or undertaking programmes for production,

processing, product diversification and by-product utilization for the

development of such commodities and enterprises.

iii. By identifying and promoting post harvest processing/ manufacturing

units in the public, private and cooperative sectors.

iv. By promoting organization of both domestic and export marketing

chains.

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v. By providing financial assistance to projects in agriculture and allied

sectors.

vi. By identifying special area and ventures which have the potential for

creation of additional employment opportunities particularly women.

vii. By identifying gaps in the existing system and establishing appropriate

linkages through liaison with the Government departments and other

stake holders.

viii. By undertaking surveys and studies for identifying commodities and

enterprises which have potential for development in the state.

ix. By organizing inputs, material supply and production services through

public, private and co-operative sectors.

x. By sponsoring specific research projects relevant to the activities of the

SFAC Kerala in collaboration with research organizations by providing

funding and organizing special training programmes for the transfer of

technology so developed.

In addition to the above, Small Farmers Agribusiness Consortium (SFAC),

Kerala has been entrusted with the implementation of schemes for promotion of

value addition in agriculture in the state in MSME Sector, promotion of Farmer

Producer Organizations and Support to Agri Start ups and agribusiness incubators.

2. Background of the Scheme

To successfully face the existing and emerging challenges for Agricultural

Development, Department of Agricultural Development and Farmers’ Welfare has

to foster innovations in agriculture by promoting futuristic ideas and developing

them in to scalable and marketable business models . Agriculture Development in

Kerala depends on promoting new entrepreneurs to solve challenges in

production to processing in Agriculture. Agripreneurship is to be nourished and

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encouraged to ensure food security of growing population with quality food

produced in a sustainable and eco friendly way. This can only be achieved by

actively creating a new farm-to-fork innovation ecosystem, which supports agri-

entrepreneurs to leverage technology and create a modern agro-industry that is

sustainable but also enriches the lives of people. To accelerate this we need a

program which support disruptive agri-startups holistically by setting agendas,

identifying breakthrough ideas, contributing to knowledge dissemination, and

creating a network of agri-entrepreneurs who share a common vision for the

development of Kerala.

Agri startups and Agribusiness incubators are leading the way globally in

modifying traditional agriculture system with innovative ideas and affordable

solutions. Growing population, climatic change, urbanization and globalized trade

are the parameters that impact agricultural development in Kerala. The need of

the hour is to bridge the gaps in agriculture production with the most modern

technologies and unique business ideas for generating revenue and problem

solving. Agri startups and Agribusiness incubators provide relevant solutions

across the value chain.

Government of Kerala has made policy interventions to uplift the startup

ecosystems by constituting Kerala Start up Mission (KSUM). Department of

Agricultural Development and Farmers’ Welfare intends to collaborate with KSUM

to render innovative and practical solutions to a number of challenges faced by

the stakeholders along the agricultural value chain.

3. Objectives of the Scheme

To foster innovations in agriculture by promoting ideas and developing

them in to scalable and marketable business models

To provide incubation, seed funding and business support services to

entrepreneurs who bring disruptive technologies and fresh ideas to

agriculture.

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To promote convergence of applications of multi disciplinary modern

technologies to Agriculture and development of business models for

enhancing crop production, productivity and profitability of farming.

To attract youth to farming by providing high precision technologies for

high productivity and better price realization by modern post harvest

handling, processing ,packaging and marketing by developing agri- business

start ups.

To provide a gig economy in agriculture by simplifying tasks and timings

and providing appropriate technology and farm machinery so that every

one from school students to highly skilled farm technicians can participate

and face the existing shortage of labor in Agriculture

To attract cutting edge technologies to agriculture and channelize more

investment opportunities in Agriculture.

To modernize agriculture sector by utilizing the modern sophisticated

technologies including e commerce plat forms, IoT (Internet of Things), big

data and advanced analytics technology.

To tap the potential of agripreneurship among the youth in Kerala to

generate employment and income generation particularly in the rural

areas.

To explore models that will help the stakeholders to formulate new

solutions for growing crops in a competitive way by mitigating risks.

To impart necessary training /mentoring activities to entrepreneurs in

collaboration with KSUM , Kerala Agricultural University and other

International and National Institutes.

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To channelize Technically Competent and futuristic ideas for Agricultural

Development of Kerala.

4. Focus Areas and Technology Interventions

4.1 The focus areas of the program will include

Agri Inputs

Cultivation and Crop Care Techniques and Technologies for Safe to Eat and

Organic Food Production . Pest , Disease and Nutrient Management

Technologies. Extension Technologies and New Applications

Green House Technology and Precision Farming use of drones and Robotics

New farming methods like vertical farming ,hydroponics, aeroponics and

Urban Farming

Advanced Irrigation Technology and Water Management

Farm Mechanization, Precision Farming

Better Harvesting Technologies and Applications for Kerala based Crops

Post Harvesting Handling Technology, Food Processing, Value Addition

and Packaging

Food Traceability , e-Commerce Platform and Food Safety

Warehouse and Supply Chain Management

ICT in Agriculture and e-platforms

Farmer Services Centre and Financing Options

Integrated and Mixed Farm Enterprises including Dairy, Animal

Husbandry, and Fisheries.

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Biodiversity Conservation and Introduction of Exotic Crops and Varieties

for Value addition and processing

Innovative , technically Competent and futuristic ideas for Agricultural

Development.

Simplifying Farm Operations by Technology Interventions and

development of a Platform for Gig economy Development for Agricultural

Operations specifically suited for Kerala.

Waste Management Innovations

E-Mobility and Environmentally sustainable solutions for farming

Eco development technologies like Miyawaki Forest

4.2 New and Emerging Smart Technology Applications to be implemented

with the help of Start Ups for paradigm shift in Agricultural Development

in Kerala

Block Chain for Agriculture

Big Data Analytics

Artificial Intelligence

Intelligent Chat Bots

Augmented Reality

Supply Chain Management linked with traceability for Marketing and

Export

ERP Solutions-

Virtual Reality

Internet of Things and Farm Automation

Robotics in Agriculture

Precision Farming

Use of drones

Bug Sensors & IOT Measuring Pest population in field for Pest Control

Machine Learning

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4.3 New age technologies

IT enabled Technology Platforms and Applications for Agricultural Development

to be promoted through start up

Sl.

No Brief Description Area of Application

Potential

Benefits foreseen

2 Augmented Reality,

Internet Of Things (IOT),

Artificial Intelligence and

machine learning based

applications for floods zone

demarcation, timely

warning, monitoring and

reducing the impact of

natural calamities on

cultivated area and crop

loss, drone based crop area

assessment

floods zone

demarcation, timely

warning, monitoring

and reducing the

impact of natural

calamities on

cultivated area and

crop loss, drone

based crop area

assessment

reducing the

impact of natural

calamities on

cultivated area

and crop loss

3 Big data analytics - Soil

Health Card Based Support

System – analysis and

predictions on nutrients,

soil ameliorants etc

Increasing the

production,

productivity and

profitability of

farming

Increasing the

production,

productivity and

profitability of

farming using Big

Data Soil Health

Analytics

4 Block chain technologies

Smart Agricultural

Transactions - User

authentication and

Proper user

authentication and

payment validation

Timely payment

of subsidies with

the highest level

of transparency

and customer

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payment validation satisfaction

5 Smart Crop Insurance / IOT

based climate change

variable confirmation/

drone based pre-surveys

and post damage validation

Crop insurance

service delivery

Better

implementation

of crop insurance

scheme

6 Intelligent Chat Bots based

user interactivity in

Karshika Vivara

Sanketham based

applications

e-Extension through

Karshika Vivara

Sanketham

Better impact for

e-extension

7 Asset Sharing technologies

for Automation System for

Agro Services and Hiring

Centre Activities

Timely supply of farm

machinery and

service of skilled

labourers at

affordable rates

Use of modern

machinery and

service of skilled

labourers

8 E-Commerce Platform for

Kerala based Agricultural

Commodities and

Production based Systems

in Special Agricultural

Zones ensuring traceability

from farm to fork and

supply chain management

and logistics solutions for

Kerala based Safe to Eat

Food Products

Swiggy Model Mobile

Application for buyer and

Agricultural

Marketing

Better price

realization for

Kerala based safe

to eat food

products

9

seller interaction

9 Precision Farming and IOT

(Internet of Things ) Based

Applications

Enhancing

productivity of

farming

Increasing

production,

productivity and

profitability of

farming

10 Training and Virtual

Classroom based Solutions

using augmented reality

and virtual reality

technologies

Better extension

technologies

Better adoption

and increasing

yield

11 Robotics and IOT based

solutions for produce

harvesting in Kerala based

crops

Harvesting and post

harvest handling

Better harvesting

12 Pest and disease analysis of

crop pest surveillance

system using IOT and

artificial intelligence and

prediction models

Pest and disease

management

Better pest

control and

increase in yield

13 Price analysis and

predictions models for

Kerala based crops

Marketing Better price

realisation

14 Pesticide residue analysis

and traceability

Produce quality

analysis

Better quality

safe to eat

products

10

15 IOT and AI based irrigation

models for smart

agriculture

Irrigation Better utilization

of water

resources

5. Target Beneficiaries

Individuals, SHG’s, FPO’s, Co-operative and Charitable Societies,

Companies , Women Groups , Student or Student Groups ,Organizations

from Kerala , Government Institutions and Public Sector Undertakings etc

In case of Technology Development for specific purposes if successful

technology ideas from Kerala is not available, based on the urgency of

solution National or International solutions can be accepted. NRKs and NRI’s

can also provide solutions.

6. Scheme Components

Any Agri Business entrepreneur from Kerala is eligible and preference will

be given to those who have registered under Kerala Start Up Mission. Agri Start

up with a valid Business Plan can apply under the scheme. Detailed norms for

implementation of the following components will be decided by Managing

Committee

A) Financial Components under the scheme are

6.1 Seed Fund for Startups

Start ups with an innovative idea for product or Service can apply for

Seed Funding under the scheme. Seed fund (non refundable grant) will

empower the start up to develop a scalable business model in agricultural

sector by offering a customer centric product or services. Selected Start Ups

will be offered a seed fund of 1 Lakh to 10 Lakhs Rupees limited to 50 % of

total Cost as a credit linked back ended subsidy.

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Sl No Components Amount in Lakhs

1) Seed Funding to Start ups as back ended

subsidy

140

2) Cost of development of model business plans

and start up capacity building modules in

collaboration with reputed national and

international institutions, deploying interns

and project trainees of MBA, Agri Business,

Post Graduate Courses in Agriculture and

allied fields for field level customization of

business plans , handholding agripreneurs ,

conducting detailed studies, surveys related to

promotion of agripreneur ecosystem in Kerala

(Including handholding or strengthening

existing startups/fpos and msme

entrepreneurs of SFAC Kerala) (Honorarium

@ Rs 20,000/- month per intern/project

trainee for maximum of 3 months, Cost of

certificates to interns/project trainees etc)

10

Total 150 Lakhs

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Seed fund can be used to develop innovative agricultural products,

services, technologies , sustainable Kerala based replicable agri business

models, developing solutions for problems faced by farmers and to solve

challenges in Agricultural sector or for any innovative or special activities

approved by the Managing Committee of the Scheme. Services of reputed

national or international institutions, incubators, accelerators, research

centres, technology developers etc can be used for the benefit of selected

start ups and 50% of costs including patent /trade mark registration

approved by Technical Committee can be reimbursed as back ended

subsidy.

6.2 Challenges & Hackathons

SFAC Kerala will be organizing Challenges and Hackathons for

different categories : School Students, College Students , Women, FPO’s

and Individuals ,Companies and different groups. Selected ideas will be

given prizes and showcased in innovation Demo Days and Innovation

Grant/Seed Fund will be given if selected for further development based

on actual potential of the idea and decisions of Technical Committee. SFAC

Kerala will finalize the themes ,rules and regulations for challenges and

hackathons.

Example of Challenges

i) Appropriate Harvesting Technologies in Coconut, Arecanut , Jack

fruit ,Mango , Banana and other selected crops.

ii) Minimal Processing Machinery (Cutting and separating jack fruit and

other agricultural products for initial processing)

Examples of Hackathons

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i) Mobile and web based e-commerce software platforms for

agricultural commodities, farm produce, processed products

etc with integration of logistics arrangement , latest e-payment

gateways including UPI arrangements and innovative business

models to ensure better prizes to farmers.

ii) Mobile and Web based platforms for electronic or mobile farm

operations and automation of farm or field.

Rs 10 lakhs is earmarked for organizing Challenges and Hackathons for the

year 2020-21.Cost of organizing challenges, prizes, promotion,

documentation etc can be met from this fund.

6.3 Innovation Demo Days/Events

Selected Innovations will be showcased in different events for

encouraging innovators and popularize their application .This will create

awareness and faster adoption for technology to increase the efficiency

and sustainability. This will help in building a vibrant startup culture and a

cohesive ecosystem to address the fragmented ways of current working in

this field, shaping up the cause of Agri-Tech in the State. Eventually the

program will act as a central pillar to provide the knowledge-base, tools &

techniques, acting as a consortium and common body for the agri-

innovators to connect with the Industry, Govt / Semi-Govt Institutions,

Investors / Banks, other startups and many entities connected with the

Agriculture Technologies across the country. Rs 5.5 lakhs is earmarked for

organizing innovation demo days. SFAC Kerala will finalize the themes of

demo days.

6.4 Innovation Grant

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Winners of challenges and hackathons will be given innovation grant @

Rs 1 Lakh per applicant for developing and fine tuning prototype of

product or service based on the recommendations of the Technical

Committee of the Scheme. Rs 10 Lakhs is earmarked for funding 10

potential start ups.

6.5 Agri Start Up Portal

An Agri Start Up Portal will be developed along with Karshika Vivara

Sanketham Portal and Call Centre to disseminate Information about the

Agri Start Up Ecosystem in Kerala and collect ideas/challenges from farmers

and public for product/solution development and conduct various

challenges and competitions. This will provide a vibrant, innovative

ecosystem for agribusiness start ups to flourish. Solution development in a

gamification model to be encouraged with a gig economy model service

benefitting every one in society and simplification of farming challenges.

Rs 2 Lakhs is earmarked for Portal Development and 0.5 Lakhs for giving

publicity to the portal and social media promotion. Total fund of Rs 2.5

Lakhs is available for this purpose.

6.6 Agri Incubation Support Services

Selected Start Ups to be given product /Service Development support

by offering the facility at Agri Incubators / Other Incubators in the State or

Renowned National and International Institutes in India and to test market

the Product/service in selected markets. RKVY RAFTAAR Incubator in KAU,

SFAC Kerala Incubator in CTCRI and other Incubators, Accelerators and

Research Institutions will be used for assisting the start up. An amount up

to Rs 2 Lakhs will be reimbursed to start ups including full cost of

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Incubator fees and cost of inputs. In addition to this 50 % cost of test

marketing in one market limited to Rs 1 Lakh will be reimbursed. Cost of

patent/copy right registration can also be included in this maximum

eligible subsidy of Rs 3 Lakhs. The direct subsidy will be credited to the

bank account of Start up/Incubator. Rs 12 lakhs is earmarked for Agri

Incubation and support services for 4 or more units (maximum eligible

rates of Rs 3 Lakhs per start up)

6.7 Program Manpower and Cost of Essential Infrastructure

One Program Manager will be appointed on contract to co-ordinate the

activities envisaged in the project.

Qualifications of Program Manager

i. Degree in Agriculture or Horticulture

ii Post Graduation in Management or Agri Business with one year

experience

or

One Year IT /e-Governance Experience in reputed National e-Governance

Projects with suitable IT/e-Governance Qualifications

Program Manager will be managing the day to day activities of the

Innovation Centre under the guidance of SFAC Team which includes organising

various outreach activities, responding to internal and external queries,

maintaining relationships with all stakeholders and preparing reports and other

documentation as and when necessary, detailing the program plan and execution

strategy, connecting startups to academia, industry and/or investors as required

for mentorship and funding, branding and management of the innovation centre

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space, identify bottlenecks in the product development process and actively

resolving it, co-ordination of Demo Day to showcase the prototypes and products

developed, assist in the functioning of the technical Committee, Project Appraisal

Committee and Mentor Panel etc. Rs 6 Lakhs is earmarked for this purpose.

( Consolidated Pay @ Rs 40,000/- for 12 months [4,80,000/-] and essential

infrastructure cost of Rs 1.2 lakhs for Laptop, Wireless Net Connector, Printer and

a Smart Phone and SIM for official purpose and other essential office

infrastructure)

6.8 Cost towards mentorship /connect , entrepreneurship support services,

R&D support activities including infrastructure Development and other

contingent expenditure, Honorarium, TA /DA reimbursement of Mentors/

TA /DA reimbursement of Interns and Project trainees for field level survey,

study, business plan customization related travel to start up locations ,cost

of conducting committee meetings etc.

Rs 4.00 Lakhs is earmarked for this purpose

B) Non Financial Components

6.9 Mentoring from Agricultural experts to support product development.

Creation of a Virtual Cadre in Department for mentoring Agri Business Start

Ups in districts by including ADA (Marketing) and interested officers or officers

having Management /Agribusiness Education from districts. 50 Master Trainers

will be trained Online /Offline with the help of KSUM,IIM, Incubators etc for

Virtual Cadre for giving mentoring and other support to start ups. Support of

Mentors and Consultants to be made available to Startups.

17

6.10 Provision of requisite knowledge, regulatory and advisory services through

professionals

6.11 Technical support for Development of a Proof of Concept to accelerate

growth

6.12 Purposeful networking for business development

6.13 Business model development Support from Professionals and Institutions

6.14 Access to office spaces/Virtual Offices at KSUM/Agencies under

Department for business activities .Video conferencing and other facilities for

start up by sharing existing facilities in Department free of cost or at

subsidized rates.

6.15 Conference /Exhibition facilities of Department /KSUM and Other

Government agencies free of cost or at subsidized rates

6.16 Product Showcase or free publicity through Department /SFAC/Start Up

Portal or Other Websites

6.17 Marketing Support & Shop Creation Facility through e-commerce

platforms of Department and other popular platforms like Amazon, Jiomart

etc

6.18 Free or Subsidized Participation in B to B Meets organized by Department

and Governmental Agencies.

6.19 Internship at Departmental Institutions and Department assisted MSMES.

6.20 Information Centre Support at SFAC

6.21 Information on single window clearance of GOK

6.22 Promotional Support to Start up

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6.23 Provision of a repository of Model Business Plans/ Projects through Start

Up Portal with the help of NABARD,KSUM ,IIM ,Incubators and other

National and International Institutions

6.24 Online/Offline Trainings for start ups on various subjects with the help

KSUM,SFAC,SAMETI ,IIM, Incubators and other National and International

Institutions.

6.25 Co-ordination with ,KSUM ,Start Up India, TIE,CII ,Management Associations

and Start up Promotional Agencies

6.26 Credit Support through NABARD, SLBC, KSUM, Venture Capital and Angel

Investors and other Agencies and Institutions.

6.27 Joint Programmes with other business promoting Agencies.

6.28 Innovation and Agribusiness Clubs in Agricultural University and Other

Colleges and Schools.

6.29 Leadership Development Opportunities for Start Ups

6.30 Mentoring by NRK’s and NRI’s to emerging start ups.

6.31 Preparation of District wise Directory of Agribusiness start ups

6.32 Bringing together all stakeholders in the agribusiness spectrum in Kerala

under a single umbrella and facilitation and promotion of start ups.

7. Implementation

SFAC Kerala will be the implementing Agency of the scheme.

7.1 Managing Committee

A managing Committee Chaired by the Director, Department of Agriculture

Development and Farmers’ Welfare with representatives from Kerala Start Up

Mission , Department of Industries, KAU, K-DiSC, , NIIST, IISR, CPCRI, Incubation

Centre –CTCRI, Incubation Centre –KAU,NABARD , KSIDC etc will be formed.

19

Managing Director, SFAC will be the Convener of the Committee. Managing

Committee will decide on the implementation the Program and sanction

assistance and support to start ups based on the recommendation of Technical

Committee .

7.2 Technical Committee / Business Plan Appraisal Committee

This committee will be chaired by the Managing Director , SFAC Kerala with

selected Technical Persons and Representatives of Kerala Start Up Mission. This

committee will meet to evaluate, select and monitor the progress of startups in

the program.

This committee will meet in a need based manner and will be responsible for

● Identifying problem statements and selecting business plans which could

address various pain points identified by the Department

● Monitoring the projects and providing necessary knowledge support

● Creating a mentor pool with officers from all relevant Agri Institutes in

Kerala

Arriving at the cost of technology or service or business model to be

developed and funding from scheme.

7.3 Process of Implementation

1) Receiving Online Application and Verification by SFAC

2) Online Interview and Business Plan Presentation by Applicant

3) Selection of Applicants by Technical Committee , approval in Managing

Committee and Issue of Primary Approval Letter

4) Inspection of facility /Evaluation of Start up activity

5) Approval by Technical Committee and Managing Committee

6) Release of funds by SFAC to Beneficiaries

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In case of emerging technology areas where licensing or regulations or

sanction is yet to be initiated by appropriate authority Managing Committee can

sanction funding for technology development/application in an experimental or

pilot project model considering the potential of technology and its utility to

farmers.

8. Expected Outcomes

Attracting Innovative technologies in Agriculture

Attracting the best brains and youth to Agriculture

Value Addition and enhancing profitability

Increasing Production, Productivity and Profitability of Farming

Development of GIG economy for Agricultural Development.

Converting Challenges in Agriculture to profitable business

opportunities

Fostering the Start up ecosystem in Agriculture

Providing more Job opportunities in Agriculture

Skill upgradation and increased mechanization in Agriculture

Solving Labour Shortage

Increasing GDP Contribution from Agriculture in the State Economy

Returning to the golden era of farming in Kerala

9. Abstract of Scheme Components

Sl No Components Cost in Lakhs INR

1. Seed Fund for Startups 150.00

2. Challenges & Hackathons 10.00

3. Innovation Grant 10.00

4. Innovation Demo Days 5.50