Venture Capital Assistance Scheme (7)

A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship’ (ASPIRE)

A. OPERATIONAL GUIDELINES FOR LIVELIHOOD BUSINESS INCUBATOR (LBI)

Objectives of LBI:

• settingup business incubators so that eligible youth can be adequately incubated in various skills and be provided the opportunity to set up their own business enterprises;

• To impart entrepreneurship, and skill development training to youth;

 • provide mentoring and hand holding with facilitation for funding with a view to empower them to set up own business enterprises.

• promote new low-end-technology/livelihood based enterprises

Quantum of Assistance

In respect of centres to be set up by NSIC, KVIC or Coir Board or any other Institution/agency of GOI/State Govt. on its own or by any of the agency/organization of the M/o MSME,

one-time grant of 100% of cost of Page 2 Plant & Machinery other than the land and infrastructure or an amount up to INR 100 Iakh, whichever is less to be provided.

(b) In case of incubation centres to be set up under PPP mode with NSIC, KVIC or Coir Board or any other Institution/agency of GOI,

one-time grant of 50% of cost of Plant & Machinery other than the land and infrastructure or INR 50.00 lakh, whichever is less to be provided.

(c) A total number of 150 such centers are being targeted to be set up under

this component with an estimated financial outgo of INR 135 Crore.

B. OPERATIONAL GUIDELINES FOR TECHNOLOGY BUSINESS INCUBATOR (TBI)

MoMSME would support existing incubation centres currently operating under different Ministries and Departments of the Government of India or Institutions including National/Regional level institutions of GOI/State Governments to set up centres dedicated to incubation and enterprise creation in the area of Agro based Industries.

MoMSME would be supporting Technology Business Incubators primarily in and around academic and technical institutions to tap potential technology ideas and innovations for enterprise creation by effectively utilizing expertise and existing infrastructure already available with the incubators under the aforesaid institutions.

The Ministry would assist to set up new incubation centres by eligible private institutions including Industry Associations, along with the Academic Institutions, R&D laboratories, Universities, Government entities and Technology Parks. Region wise, Crop wise, Product wise, Process wise and Industry Vertical wise Incubation Centres will be promoted.

The existing incubators under different Ministries would be required to provide built up covered space with electric power & water connections, any other forward / backward linkages and

required manpower resources for both the centres to be created within the existing incubators and also for the new incubators

Eligibility

To set up new incubation centres, eligible private institutions including Industry Associations, along with the Academic Institutions, R&D laboratories, Universities,

Government entities and Technology Parks, Technical institutions with a proven track record in promotion of innovative/technology based entrepreneurship in the agro-rural landscape.

Existing incubation centres currently operating under different Ministries and Departments of the Government of India or Institutions including National/Regional level institutions of GOI/State Governments.

The existing incubator should have adequate expertise and infrastructure to support incubation activity for promoting Innovation, Entrepreneurship, Agro-based industry.

Quantum of Assistance

Setting up of Incubation Centres: (i) One-time grant of 50% of cost of Plant & Machinery excluding the land and infrastructure or an amount up to INR30 Lakh,

whichever is less to be provided for supporting 20 existing incubation centres under different

Ministries or Departments or government funded institutions such as DST, DBT, ICRISAT, ICAR to set up such centre dedicated to incubation and enterprise creation in the area of Agro based Industry.

This will also include a provision of 10% towards refurbishment cost within the grant. [INR30 lakh x 20 Centres=INR6 crore];

One-time grant of 50% of cost of Plant & Machinery excluding the land and infrastructure or an amount up to INR100 Lakh,

whichever is less to be provided for setting up of new incubation centres by eligible agencies dedicated to incubation and enterprise creation in the area of Agro based Industry.

This will also include a provision of 10% towards refurbishment cost within the grant. [INR100lakh x 10 centres=INR10 crore]

Incubation of Ideas: INR4 Lakh per idea to paid upfront to the incubator to nurture the idea at inception stage to the stage of proof of concept. Each incubator to submit 10 compelling ideas [300 Ideas x INR4lakh=INR12 Crore].

Creation of Business Enterprise out of innovative ideas:

(i) One time grant of INR1.00 Crore will be provided to the eligible incubator as Seed Capital Revolving Fund for setting Business Enterprises out of the Innovative ideas incubated.

The Incubator will invest as Debt/Equity/ Venture Capital funding up to 50% of total project cost or INR20 Lakh per start up whichever is less for setting up of the start-ups to the incubate for commercialization of the innovative and successful ideas. The returns will ploughed back to the Seed Capital Revolving Fund

Such innovative and successful ideas which are ready for commercialization through developing prototype or proof of concept (POC) or test marketing/ validation in case where POC already exists will supported by the incubator out of this Seed Capital Revolving Fund. [INR20 lakh x 150 start-ups=INR30 Crore

C. OPERATIONAL GUIDELINES FOR FUND OF FUNDS TO MANAGED BY SIDBI

ASPIRE Fund of Funds under SIDBI with a corpus Fund of INR 60 Cr will augmented with an amount of INR 250Crore, making the total corpus INR 310 Crore.

This start-up promotion targets those knowledge initiatives which need support and nurturing to succeed in developing technology and business enterprise in near future in the areas of Innovation, Entrepreneurship,

Forward Backward Linkages with multiple value chain of manufacturing and service delivery, Accelerator support etc in the Agro based Industry verticals either directly or indirectly

This start-up promotion targets those knowledge initiatives,

which need support and nurturing to succeed in developing technology and business enterprise in near future.

Opportunities exist for scaling up manufacturing, productivity enhanced margins, etc. in agro and rural based industry.

Agribusiness companies have the opportunity not only to serve domestic market but also regional or overseas markets with same or similar product mix.

The improvement in infrastructure for storage and transportation is also facilitating companies to address overseas markets.

In turn, companies are increasingly able to build, scale and develop supply chain and standards acceptable to world markets in agribusiness.

Eligibility Criteria of Venture Capital Funds

The fund received from ASPIRE scheme is to invested in suitable funds falling under the Category I & II Alternative Investment Funds (AIF) registered with SEBI.

 The AIFs should invest at least twice the amount of contribution received under ASPIRE Fund in Start-ups / early stage enterprises under Micro, Small and Medium Enterprises (MSME) category, of which 1X shall invested in the agro and rural focused Start-ups/ early stage enterprises under MSME category. Exclusive IT based application / intervention in the agro and rural based industry verticals shall not qualify for this compliance

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