The Scheme provides opportunity to the innovators in developing and nurturing their new innovative ideas for the production of new innovative products which can be sent in to the market for commercialization.

Host Institutions (HI) are exploring the new innovative ideas from the Incubatee of various sectors that may be existing and prospective entrepreneurs. Even the students from the various streams are also participating in nurturing their new ideas through the Host Institutions as a part of their studies and carrier building.

Nature of assistance

GoI financial assistance of 75 % to 85 % of the project cost up to the maximum of 8.00 Lakhs . This fund is routed through the Business Incubator (BIs).

Who can apply

IITs, NITs, Engineering Colleges approved by AICTE, Central / State Universities recognized by UGC and other recognized R & D and / or Technical Institutes / Centres, Development Institutes of DIP&P in the field of Paper, Rubber, Machines Tools, etc.

Objectives

Salient Features

Concept

Under this scheme, 100 “Business Incubators” (BIs) are to be set up under Technology (Host) Institutions over the next 4 years [@ say 25 per year] and each BI is expected to help the incubation of about 10 new ideas or units. For this service, which includes the provision of laboratory/workshop facilities and other assistance/guidance to young innovators, each BI will be given between Rs.4 lakh and Rs. 8 lakh per idea/unit nurtured by them, limited to a total of Rs. 62.5 lakh for the ten units. In addition, each BI or each Host Institution may get:

Thus the total assistance per BI Rs. 66.50 lakhs

Financial Assistance

As stated, 100 Business Incubators are to be set up to incubate about 1,000 ideas, many of which are likely to lead to the setting up of Small and Micro Enterprises at a cost of Rs. 62.50 crore in four years time period. Financial target in terms of expenditure has also been indicated to match the physical target. Another Rs. 4 crore are earmarked for minor components and the total cost of the project is to be Rs. 66.5 crore. BIs will maintain separate accounts of the funds received and expenditure incurred on various activities. An audited Statement of Accounts or the statement certified by the Chief Financial Officer of the Host Institution will also be obtained.

Implementing Agencies

The incubational support will be provided by Host Institutions, like:

The geographical areas, the disciplines and the infrastructure-providers listed above will be reviewed midway during the implementation, for any corrective action needed to make the scheme more effective with better outcome.

Mode of Finance Releases

As would be laid down in the tripartite agreement between the Government, the Host Institution and the aspiring entrepreneur, the Government would release finances to the Host Institution. Initially, the Host Institution would be released 30 per cent of the expenditure expected to be incurred in the establishment and operation of the incubators during the ensuing financial year. The balance would be released to the Host Institution in one or more instalment, once the earlier amount is reported to have been utilised by the Host Institution.

Participation In A Public Private Partnership Mode (Ppp Mode)

To ensure the participation of the entrepreneurs in a PPP mode, it has been proposed that 15% and 25%, as the case may be, of the cost of intervention, will be borne by Micro and Small Enterprises respectively, wherever applicable. The proposal is in the form of pointed interventions to demonstrate the efficiency of superior technologies/ procedures that are more conducive to the fast-changing environment in industrial competitiveness. In other words, other innovative options are being considered, with considerable degrees of private participation, in order to implement the schemes that are proposed under the PPP mode. The innovative options ensuring that private participation in the programme is on a proportionate basis and Govt. contribution of 75% to 85% towards the project cost will be utilized for technology fee, common facilities and hiring/lease of machinery, etc. The incubatee will deposit his/her share to the host institute after completing the formalities of Tripartite Agreement, to be signed between the Government, the Host Institute (operationalizing the incubator) and the aspiring incubatee, clearly laying down the obligations from and expectations of each of the three signatories (Annexure-III).