The scheme is to promote and support untapped creativity and to promote adoption of latest technologies in MSMEs that seek the validation of their ideas at the proof-of-concept level. The scheme also supports engagement with enablers who will advise such MSMEs in expanding the business by supporting them in design, strategy and execution
Activities
- Recognition of eligible institutions as Host Institute (HI) to act as Business Incubator (BI)
- Approval of Ideas of Incubatees submitted through Host Institute (HI)
- Assistance for nurturing of Ideas to HI
- Assistance towards Capital Support to HI for Plant and Machinery
Financial Assistance
Incubation Component
- For Ideas:
- Financial assistance up to ₹15 lakh per idea for development and nurturing.
- 85% of the project cost is borne by the Ministry of MSME; 15% is contributed by MSMEs.
- For students, the entire cost (up to ₹15 lakh) is borne by the Ministry.
- For Plant and Machinery:
- Financial assistance up to ₹1 crore for Host Institutes (HIs) for setting up machinery/equipment to develop approved ideas.
Design Component
- Design Projects:
- Financial assistance for design interventions.
- 75% of the project cost for Micro enterprises and 60% for Small & Medium enterprises, up to a maximum of ₹40 lakh.
- Student Design Projects:
- Up to ₹2.5 lakh per project.
- 75% of the cost is borne by the Ministry; the rest is contributed by MSMEs.
IPR Component
- Reimbursement for IPR Registration:
- Foreign Patent: ₹5 lakh
- Domestic Patent: ₹1 lakh
- Geographical Indication (GI): ₹2 lakh
- Design Registration: ₹15,000
- Trademark Registration: ₹10,000
- IP Facilitation Centres (IPFCs):
- Financial assistance up to ₹1 crore for setting up and running IPFCs.
Seed Capital Support:
- Financial assistance up to ₹1 crore as equity support for commercialization of ideas/designs/patents.
- Managed by SIDBI with an 80:20 funding ratio (80% by the Government, 20% by the MSME).
Eligibility
General Eligibility
- MSMEs registered under Udyam Registration (or UAM until the transition deadline).
- Institutions like technical colleges, R&D institutes, NGOs, and government bodies can act as Host Institutes (HIs).
Specific Eligibility
- Incubation Component: MSMEs, students, and Host Institutes.
- Design Component: MSMEs and students (through accredited institutions).
- IPR Component: MSMEs with valid Udyam Registration.
- Seed Capital: Existing beneficiaries under the Incubation, Design, or IPR (Patents) schemes.
