NIDHI EIR Scheme

The NIDHI-EIR Scheme (National Initiative for Developing and Harnessing Innovations – Entrepreneurs-in-Residence) is a government-supported program designed to help young entrepreneurs develop technology-driven business ideas. It provides various forms of support, including financial assistance, office space, and expert guidance. The initiative is a part of the government’s push to build a sustainable startup ecosystem in India, specifically targeting technology businesses.

The scheme encourages young individuals with an interest in entrepreneurship to explore the potential of their ideas without the risks typically associated with starting a business. With NIDHI-EIR, entrepreneurs receive the necessary tools to move from concept to execution, which includes hands-on mentoring from industry experts, a workspace, and funding for the initial stages of their venture.

The NIDHI-EIR scheme has become an essential resource for early-stage entrepreneurs in India, creating a bridge between academic research, technological innovation, and commercial viability.

The primary objectives of the NIDHI-EIR Scheme are:

• Encourage Technology Entrepreneurship: The scheme aims to support young minds to venture into technology-based entrepreneurship by providing resources and guidance.
• Support for Graduates: It offers a platform for graduating students and budding entrepreneurs to explore entrepreneurial opportunities while reducing the risks involved.
• Foster Innovation: It encourages the commercialization of academic and research-based technologies by supporting innovative ideas through grants and resources.
• Reduce Opportunity Costs: The financial grants and stipends under the NIDHI-EIR scheme help entrepreneurs mitigate the opportunity costs of leaving well-paying jobs to pursue startup ideas.
• Increase Startup Success: By providing a structured platform, the NIDHI-EIR scheme seeks to increase the chances of new startups succeeding and attracting future investment.

Some key features of the NIDHI-EIR scheme include:

• Financial Support: A monthly stipend is offered to entrepreneurs under the scheme, ranging from Rs. 10,000 to Rs. 30,000 per month for a maximum period of 18 months. The financial support helps cover basic living expenses and ensures that entrepreneurs can focus on their ventures.
• Co-working Spaces: Entrepreneurs have access to co-working spaces that are equipped with infrastructure and resources needed to develop their ideas into market-ready products.
• Mentorship: The program connects entrepreneurs with successful industry veterans and experienced mentors who offer business strategy, product development insights, and industry-specific advice.
• Networking Opportunities: Entrepreneurs gain access to a vast network of professionals, investors, and experts who can provide valuable feedback, partnerships, and funding opportunities.
• Exposure to Best Practices: Entrepreneurs are taught best practices for launching and scaling a startup, which includes guidance on business planning, execution, and sustainability.
• Promotion of Technology-Based Ventures: The NIDHI-EIR scheme focuses specifically on startups that rely on innovative technology, ensuring that the support is directed toward ventures that have the potential to drive significant economic and technological growth.

Implementing Agency for NIDHI-EIR Scheme

The Venture Centre, NCL, Pune, which has been designated as the Program Implementing Partner (PIP) by the National Science and Technology Entrepreneurship Development Board (NSTEDB), implement the NIDHI-EIR scheme. The NSTEDB works under the Department of Science and Technology (DST), which is the overarching body responsible for the implementation and monitoring of the scheme.

The PIP plays a crucial role in managing the program, inviting applications, selecting NIDHI-EIR incubators, disbursing funds, and monitoring the progress of the supported startups. Additionally, the PIP is responsible for creating and updating an online portal for NIDHI-EIR and submitting regular progress reports to the DST.

The funding mechanism of the NIDHI-EIR scheme is designed to support entrepreneurs in the early stages of their ventures. The following are the key details:

• Stipend: The NIDHI-EIR support recipient is eligible for a monthly stipend ranging from Rs. 10,000 to Rs. 30,000. This stipend is provided for a maximum of 18 months, with the amount being decided based on the qualification and potential of the applicant.
• Grant Disbursement: The disbursement of funds is done in two installments:

1. First Installment (80%): The first installment is released at the start of the project.
2. Second Installment (20%): The second installment is released upon submission of progress reports, ensuring that at least 90% of the funds from the first installment have been utilized.

• Total Funding: The annual budget for a Program Executing Partner (PEP) (i.e., the incubator) is Rs. 39.60 lakhs, which includes funds for NIDHI-EIR recipients and administrative costs.

The NIDHI-EIR scheme terms and conditions include the following:

• The TBI must meet eligibility criteria to host the NIDHI-EIR Programme.
• A proposal should be submitted along with an official letter from the head of the TBI.
• The NIDHI-EIR programme must have competent manpower skilled in innovation management for proper operation.
• A Project Leader with adequate management expertise should be appointed for the day-to-day operation of the programme.
• The TBI must establish a transparent selection process for NIDHI-EIR applicants, following the prescribed criteria.
• The TBI is required to maintain a website, updating it regularly, at least quarterly, with details of NIDHI-EIR beneficiaries.
• A governing committee with 5-7 members must be formed to evaluate applications and review grantee progress.
• The funds must be exclusively utilized for the intended purpose, and any unspent amount must be refunded to the Government.
• The grantee must submit progress reports, audited statements, and utilization certificates as required by the Department of Science and Technology.
• Separate bank accounts must be maintained for the grant, with any interest earned reported and adjusted against future installments.
• Grant funds must not be transferred to another institution, and any unutilized grant must be refunded.
• The government reserves the right to terminate the programme support if the funds are not used appropriately or if progress is unsatisfactory.
• Failure to comply with the conditions of the grant may result in the requirement to return the funds received and disqualification from future grants.
• The TBI must not be liable for any issues arising from the manpower employed for implementing the NIDHI-EIR programme.
• The TBI must ensure appropriate safety measures and insurance coverage to safeguard human life and property during the programme.
• There is no liability for the Department of Science and Technology regarding any legal or regulatory issues faced by the TBI or its incubatees.
• The grantee institution must indemnify the Department of Science and Technology from any legal consequences arising from negligence or willful acts.
• The level of support provided to NIDHI-EIR recipients must be determined by the TBI, optimized to encourage entrepreneurship.
• The TBI may charge NIDHI-EIR recipients for services related to pre-incubation or resident incubation support.
• Any unutilized funds from the annual grant will be deducted from the disbursement in the following year.

The eligibility criteria for this scheme is:

Eligibility and Pre-requisites of Programme Executing Partner (PEP)

Here is the key eligibility criteria for incubators to qualify as PEPs, requiring a proven track record and the capacity to support and scale startups effectively:

• The incubator must be a Technology Business Incubator (TBI) or STEP (Science and Technology Entrepreneurs Park) that is promoted or recognized by a State or Central Government Department in India.
• It should be a not-for-profit legal entity.
• The incubator must have been in operation for at least three years and must have a proven record of incubating startups.
• The three-year period is counted from the date of registration or sanction order from the government.
• If the incubator is fully funded by the State or Central Government, the three-year requirement can be relaxed.
• The incubator should have at least 20 incubates.
• It should be capable of expanding and accommodating more startups that may come from the NIDHI-EIR scheme.
• If the incubator was selected as a PEP in earlier rounds, it must have used at least 60% of the funds provided in the previous round to qualify for continued support.
• Every year, 10 new TBIs will be selected, along with existing incubators from earlier rounds.
• Preference will be given to incubators that are linked to academic institutions and have a full-time CEO with a dedicated team managing the operations.

Eligibility for NIDHI-EIR Support

The eligibility criteria for NIDHI-EIR support is:

• The applicant must be a citizen of India, with proof of nationality like a passport or voter’s ID.
• A minimum of 4 years of formal full-time education (undergraduate/postgraduate) in science or engineering is required.
• Alternatively, applicants with a 3-year degree or diploma and 2 years of full-time work experience in a science or engineering field are eligible.
• The applicant should be a first-generation entrepreneur with no prior source of income.
• NIDHI-EIR support should not be used as a temporary arrangement for academic or career transitions.
• The applicant should demonstrate the potential to develop a scalable technology startup.
• A detailed background, as per the prescribed format, should be submitted as part of the application.
• The applicant must propose a technology-driven business idea in the prescribed format.
• The support recipient must commit to pursuing their entrepreneurial goals full-time.
• The NIDHI-EIR grant cannot be held concurrently with other fellowships or remunerative employment.
• The applicant cannot be a promoter or a significant (>10%) shareholder/beneficiary of another company while applying for NIDHI-EIR support.
• The applicant should be enrolled in a pre-incubation or incubation program at an approved Technology Business Incubator (TBI) during the entire support period.
• Preference is given to technology business ideas that involve large technological uncertainties, longer development timelines, or use intellectual property (IP) from publicly funded research.
• Applicants with business ideas that lack substantial technological innovation or those expected to commercialize within six months should not apply.

To apply for the NIDHI-EIR scheme online, follow these steps:

• Program Announcement: The NIDHI-EIR scheme will announce the programme locally, ensuring widespread awareness among potential applicants.
• Application Process: Interested applicants must submit their applications online using the prescribed format, as specified by NIDHI-EIR.
• Eligibility Criteria: Applicants will need to meet the predefined eligibility criteria to qualify for the support grant under the NIDHI-EIR scheme.
• Selection Mechanism: NIDHI-EIR will evaluate applications based on a set of qualifying criteria, ensuring that the most promising candidates are selected.
• Notification of Selected Applicants: Successful applicants will be notified by NIDHI-EIR about their selection for the support grant and the next steps to follow.

Corpseed is one of the top consulting firms, offering comprehensive assistance on government schemes and benefits, guiding businesses through necessary processes. For the NIDHI-EIR scheme, we help startups by providing expert support in application procedures, documentation, funding opportunities, and business proposals, ensuring smooth access to financial support.

• Eligibility Support: Corpseed helps startups understand the eligibility criteria and ensures they meet all requirements for the NIDHI-EIR scheme.
• Application Guidance: We assist in completing and submitting the necessary forms and documents, ensuring a smooth application process.
• Funding Insights: We guide startups in identifying the best funding opportunities under the NIDHI-EIR scheme to secure financial support.
• Proposal Assistance: Our team helps in drafting clear and impactful business proposals to improve the chances of securing approval.
• Ongoing Mentorship: Corpseed offers continued support, ensuring startups get the right advice to scale and grow after receiving financial backing.
• End-to-End Support: From the application phase to project implementation, we provide comprehensive support throughout the entire process, making it easier for startups to access and utilize the NIDHI-EIR scheme effectively.