The maximum amount of grant will be Rs 1.5 crore per innovator, even in cases where the total project cost exceeds Rs 3 crore, the officials said.
Under the policy, the innovator will exclusively retain the ownership of the intellectual property rights generated under the project.
The Indian Railway Innovation Policy will identify and enable Indian innovators to engage with the railways for developing cost-effective, implementable, scalable solutions and functional prototypes for the national transporter, officials said.
''Since there is a major constraint of capital inadequacy in the startup ecosystem, particularly in the seed and 'Proof of Concept' developmental stage
this policy aims at providing the necessary seed fund support of up to Rs 1.5 crore (on matching contribution basis) to the startups.
One of the major objectives of the policy would be to leverage new innovative technologies, developed by entrepreneurs and startups, for improving operational efficiency and safety on the railway system, the officials said.
The eligible organisations or beneficiaries of the support will include any Indian company incorporated under the Companies Act 1956/2013, primarily micro, small and medium enterprises (MSME) as defined in the MSME Act, 2006
The policy also encourages research and development institutions to apply for the grant.