Srinagar, Oct 9: Startup founders selected under Jammu and Kashmir’s seed funding scheme have raised concerns over delays in the release of subsequent instalments, saying the uncertainty is affecting business planning, product development and day-to-day operations despite the government’s stated objective of strengthening the Union Territory’s startup ecosystem.

Group identifying itself as beneficiaries of the Jammu and Kashmir Entrepreneurship Development Institute’s (JKEDI) Startup Seed Fund alleged that startups which received their first instalments in January and March 2026 have not received subsequent payments, despite the passage of the following quarters. They said they had not been given a clear timeline for inspections or the release of pending funds.
The concerns come as the scheme provides eligible startups with one-time assistance of up to ₹20 lakh in four equal instalments. According to the official Startup Jammu and Kashmir portal, the funding is intended to support activities including prototype development, product trials, market entry and business expansion. Disbursement is linked to progress monitoring, while funding cases require appraisal and approval by the Startup Task Force Committee.
An official JKEDI order dated December 29, 2025, approved seed funding for 18 startups under the 2024–27 policy. The order specified that the first instalment would be ₹5 lakh for each selected startup and that subsequent instalments would depend on the achievement of approved milestones, submission of utilisation certificates and compliance with the operational guidelines.
The founders said they supported inspections and financial accountability but maintained that the process should be completed within a reasonable timeframe. They argued that prolonged uncertainty over payments made it difficult for early-stage businesses to plan expenditure, develop products and sustain operations.
The representation also questioned the timing of fresh application invitations while earlier beneficiaries were awaiting subsequent instalments. JKEDI issued a second-round seed funding advertisement in February 2026 under the Jammu and Kashmir Startup Policy 2024–27.
They sought clarification from the Lieutenant Governor’s administration, the Chief Minister, JKEDI and the Industries and Commerce Department on the status of pending instalments, the inspection schedule, reasons for the delays and a definite timeline for payment.
They requested that their identities be kept confidential, citing concerns about possible repercussions. KNT has not independently verified the payment status of each beneficiary, and no response from JKEDI or the concerned government authorities was available for inclusion in this report.
The issue raises questions about the implementation of a scheme designed to help young businesses bridge early-stage funding gaps. Timely disbursement, alongside appropriate checks on fund utilization, is central to ensuring that approved assistance can serve its intended purpose of supporting innovation and sustainable business growth in Jammu and Kashmir.