Incubation Scheme (MSME Innovative Scheme)

The Incubation Scheme, under the MSME Innovative Scheme by the Ministry of MSME, supports creative ideas and technological adoption in MSMEs. It provides financial assistance for idea validation and engagement with enablers for business expansion.

What is the Incubation Scheme?

The Incubation Scheme aims to foster innovation by providing financial support to Host Institutes (HIs) for nurturing incubatees' ideas. It also offers capital support for plant and machinery to enhance R&D activities and common facilities.

Key Objectives of the Incubation Scheme

· Promote Untapped Creativity: To support and develop innovative ideas in the MSME sector.

· Encourage Technological Adoption: To facilitate the adoption of the latest technologies in MSMEs.

· Idea Validation: To support the validation of ideas at the proof-of-concept level.

· Business Expansion: To assist MSMEs in expanding their businesses through expert advice and support.

· Establish Business Incubators: To recognize and support institutions as Host Institutes (HIs) or Business Incubators (BIs).

Eligibility Criteria for the Incubation Scheme

· Institutions such as:

o Technical Colleges

o Universities

o Professional Colleges/Institutes

o R&D Institutes

o NGOs involved in incubation activities

o MSME-Development Institutes (MSME-DIs)/Technology Centres

o Any Central/State Government Institute/Organization.

Benefits of the Incubation Scheme

· Idea Nurturing Assistance: Up to ₹15,00,000 per idea for Host Institutes (HIs).

· Capital Support: Up to ₹1,00,00,000 for HIs for procurement and installation of plant and machinery, hardware, and software for R&D and common facilities.

How to Apply for the Incubation Scheme?

· Online Application:

1. Registration:

§ Visit the official website.

§ Click on the "REGISTRATION" button.

§ Enter all details and submit.

§ Login window will appear after successful registration.

2. HI/BI Application for Approval:

§ Login to the HI/BI dashboard.

§ Click "Apply for HI/BI Approval."

§ Fill in the application details and submit.

Documents Required for Application

· University Affiliation.

· All India Council for Technical Education (AICTE) Approval.

· National Accreditation Board for Testing and Calibration Laboratories (NABL) or Other Accreditation.

· Last two years' audited annual accounts with auditor’s report.

· Any other required documents.

FAQs About the Incubation Scheme

1. Who is eligible to apply?
Technical colleges, universities, R&D institutes, and other eligible institutions.

2. What kind of support is provided?
Financial assistance for idea nurturing and capital support for plant and machinery.

3. How much funding is available?
Up to ₹15,00,000 per idea and up to ₹1,00,00,000 for capital support.

4. How do I apply?
Through the online portal on the official website.

5. What documents are required?
University affiliation, AICTE approval, audited accounts, and other relevant documents.

Why Should You Apply for the Incubation Scheme?

The Incubation Scheme provides crucial financial and infrastructural support to institutions aiming to foster innovation and entrepreneurship. By establishing incubation centers and nurturing startups, institutions can contribute to technological advancement and economic development.

Conclusion

The Incubation Scheme under the MSME Innovative Scheme is a significant initiative that promotes innovation and technology adoption in the MSME sector. By providing financial assistance and support to Host Institutes, the scheme plays a vital role in nurturing entrepreneurial ideas and driving economic growth.