Government Launches ‘Chunauti’: Next-Gen Start-up Challenge for Tier-2 Towns

28th, August, 2020

Bleeding Age: For Entrepreneurs
2 min readAug 31, 2020



Union minister of Electronics and Information Technology Ravi Shankar Prasad on Friday, launched “Chunauti” — A Next Generation Startup Challenge Contest to promote software products with special focus on Tier-2 towns of India.

The government has designated a budget of Rs 95.03 crore for a period of three years to fund Chunauti with each startup to receive a seed funding up to Rs 25 lakh. The challenge will mainly focus on the following areas: ed-tech, Agri-Tech & Fin-Tech Solutions for masses, infrastructure and remote monitoring, jobs, skilling, linguistic tools and technologies, Supply Chain, Logistics & Transportation Management and Medical Healthcare, Diagnostic, Preventive & Psychological Care. The ministry is also looking for the start-ups working on supply solutions.

According to the ministry’s statement, around 300 start-ups will be selected. The government is also ready to provide a wide range of support to the selected start-ups. Startups would get incubation facilities, mentorship, security testing facilities, access to venture capitalist funding, industry connect as well as advisories in legal, Human Resource (HR) & patent matters. Support would be provided through the Software Technology Parks of India centers across the country.

On this new beginning, the minister said, “ I request the young , talented innovators to come forward and avail benefits of the Chunauti challenge of government and create new software products and apps. This launch is a bold initiative under the clarion call for AatmaNirbhar Bharat given by Prime Minister Narendra Modi.”

In addition to this, startups which are in the ideation stage may also be selected under the “pre-incubation programme”. These startups would be mentored for up-to 6 months to further evolve their business plan and solution around their business ideas. For such projects, the government would pay each intern (start-up under pre-incubation) Rs. 10,000/- per month for up-to a period of 6 months.Startups can apply by visiting the website of STPI.

Union minister also laid the foundation stone of the digital training and skilling center of National Institute of Electronics and Information Technology (NIELIT) at Muzaffarpur, Bihar. This center will be developed by the government of India at a cost of Rs 9.17 crore on the one acre of land allocated by the government of Bihar.

Also read- Government of India Launches Swadeshi Microprocessor Challenge