Support for Entrepreneurial and Managerial Development of SMEs through Incubators
The main objective of the scheme is to promote emerging technological and knowledgebased innovative ventures that seek the nurturing of ideas from professionals beyond the traditional activities of Micro, Small & Medium Enterprises (MSMEs). Such entrepreneurial ideas have to be fostered and developed in a supportive environment before they become attractive for venture capital.
Under this scheme, 100 “Business Incubators” (BIs) are expected to be set up under Technology (Host) Institutions over the next 4 years 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:
(a) Upgradation of infrastructure Rs. 2.50 lakh
(b) Orientation/Training Rs. 1.28 lakh
(c) Administrative Expenses Rs. 0.22 lakh
Total assistance per BI - Rs. 66.50 lakhs
Bifurcation of Rs. 6.25 Lakhs per Incubatee (Rs. in Lakhs)
1. Technology fee 2.00
2. Telephone, Fax, Computer facility, etc. 0.25
3. Machinery hiring or leasing from outside 1.00
4. Guidance fee for mentors/ handholding persons, etc. 2.00
5. Electricity, accommodation charges, etc. 1.00
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.