Overview

The Incubation component of the MSME Innovative Scheme aims to promote the adoption and development of innovative ideas and technologies by Micro, Small and Medium Enterprises (MSMEs). This component facilitates the transformation of novel concepts into commercially viable business propositions by providing financial assistance and institutional support through recognized Host Institutions (HIs).

Objective

To nurture and support innovative business ideas that have the potential for commercial application and societal impact, through the creation and strengthening of incubation centres in collaboration with academic and research institutions.

Key Features

• Recognition of Host Institutions (HIs):
  Academic institutions, R&D centres, technical colleges, MSME-DIs, and other eligible entities can apply for recognition as Host Institutions to support and mentor innovators.

• Financial Assistance for Ideas:

  • Funding support of up to ₹15 lakh per approved idea for development, prototyping, testing, and validation.

  • Assistance can be provided for up to 5 ideas per Host Institution per year (subject to performance and availability of funds).

• Infrastructure Grant for Host Institutions:

  • One-time assistance of up to ₹1 crore per Host Institution for the purchase of relevant plant, machinery, and equipment required to support incubation activities.

• Support for Student and Startup Innovators:
  The scheme also encourages participation from students, startups, and aspiring entrepreneurs working on breakthrough ideas with commercial potential.

Eligibility Criteria

For Host Institutions (HIs):

• Government or private academic/R&D institutions, universities, technical colleges, or incubation centres.

• Must possess adequate infrastructure and technical capabilities to mentor and support innovators.

For Innovators/Applicants:

• Any individual, student, startup, or MSME with a new and innovative idea.

• The idea must be validated and recommended by a recognized Host Institution.