Mandi, Aug 27 (IANS): IIT Mandi Catalyst will now disburse over Rs 10 crore to startups over next five years, it was announced on Tuesday.

A startup will now be able to raise up to Rs 50 lakh in seed capital from IIT Mandi Catalyst compared to earlier maximum of Rs 15 lakh.

This comes after the National Science and Technology Entrepreneurship Development Board of the Department of Science and Technology has approved setting up of Seed Support System program at IIT Mandi Catalyst.

Under the Seed Support System programme, startups will have to spend minimum three months in residency at IIT Mandi.

During this time, the Catalyst will provide an additional grant of Rs 1.5 lakh to initiate work on the idea and prove its worth.

Entrepreneurs that successfully show their ideas' worth will then be eligible to raise funds up to Rs 50 lakh.

Faculty in-charge for Catalyst Puran Singh said: "IIT Mandi is committed to building a strong ecosystem in the region and increasing in funding for startups is a strong step in this direction."

"We have a vision to make Kamand Valley a favoured destination for startups from across the country."

In last three years, IIT Mandi has disbursed over Rs 1 crore grants and investments to over 30 startups that have gone through its three-month residential program.

During this program, startups are provided technical mentoring by faculty of IIT Mandi while they build prototype or test and improve their product.