Srinagar, October 9: Startup founders selected under Jammu and Kashmir’s seed funding scheme have raised concerns over delays in the release of subsequent instalments, alleging that the uncertainty is affecting business operations, product development and financial planning.
In a representation submitted to Kashmir News Trust, a group of beneficiaries of the Jammu and Kashmir Entrepreneurship Development Institute’s (JKEDI) Startup Seed Fund said startups that received their first instalments in January and March 2026 were still awaiting further payments. They alleged that no clear timeline had been communicated for inspections or the release of the pending funds.
Under the scheme, eligible startups can receive financial assistance of up to Rs 20 lakh in four equal instalments. The funding is intended to support activities such as prototype development, product testing, market entry and business expansion.
Disbursement is linked to progress monitoring, while funding proposals are subject to 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 Jammu and Kashmir Startup Policy 2024-27. The order provided for an initial instalment of Rs 5 lakh for each selected startup, with subsequent payments dependent on the achievement of approved milestones, submission of utilisation certificates and compliance with operational guidelines.
The founders said they understood the need for inspections and financial accountability but maintained that verification procedures should be completed within a reasonable timeframe. They argued that uncertainty over the release of funds was making it difficult to manage expenses, advance product development and sustain their businesses.
The beneficiaries also questioned the timing of fresh applications being invited while previously selected startups were awaiting subsequent instalments. JKEDI had issued a second-round seed funding advertisement in February 2026 under the same startup policy.
Seeking intervention, the founders have urged the Lieutenant Governor’s administration, Chief Minister, JKEDI and the Industries and Commerce Department to clarify the status of pending payments, the schedule for inspections, the reasons behind the alleged delays and the expected timeline for disbursement.
The group requested that its members' identities remain confidential, citing concerns about possible repercussions.
The payment status of individual beneficiaries could not be independently verified. No response from JKEDI or the concerned government authorities was available at the time of publication.
The concerns have brought attention to the implementation of a funding programme intended to help emerging businesses overcome early-stage financial challenges. Beneficiaries have stressed that timely disbursement, alongside proper monitoring and utilisation checks, is essential to ensure that the scheme delivers its intended support to startups across Jammu and Kashmir.
