Monday , 18 October 2021
Scheme for Promotion of Innovation, Entrepreneurship and Agro Industry

Scheme for Promotion of Innovation, Entrepreneurship and Agro Industry

A Scheme for Promoting Innovation, Entrepreneurship and Agro Industry was launched by Shri Kalraj Mishra, Union Minister for MSME here today.

Speaking on the occasion the Minster said that the scheme was formulated to set up a network of technology centres and to set up incubation centres to accelerate entrepreneurship and also to promote start-ups for innovation and entrepreneurship in agro-industry. The scheme emanates from the Finance Minister’s budget speech for 2014-15, whereby, he has suggested establishing Technology Centre Network to promote Innovation, Entrepreneurship and Agro Industry with a fund of Rs.200 crore. He had also suggested to put in place a programme to facilitate forward and backward linkages with multiple chain of manufacturing and service delivery and also to take up a nationwide “District level Incubation and Accelerator Programme” for incubation of new ideas and providing necessary support for accelerating entrepreneurship.

The Minister also announced the setting up of 500 new incubation centres all over India by next year.

The first important program component of the scheme is to create a database of technologies available with various Government / private agencies and set up a Network of Technology Centres for handholding of prospective entrepreneurs of MSME sector.

The second component is to develop the required skilled Human Resources necessary for mentoring and handholding the incubatees in the Incubation centres. Under this component, special efforts would be made to identify, support and expand the role of competitive Indian MSMEs in a global economy.It is proposed to provide mentoring support to MSME’s through NSIC/ other Agencies of Ministry of MSME. Capacity Building including Awards, Surveys, Studies, Exposure Visits, Engagement of Consultants including Monitoring and Evaluation etc. would be conducted with an estimated expenditure of INR 17.75 Crore.

The third component is to set up Livelihood Business Incubators(LBI) under National Small Industries Corporation (NSIC), KVIC or Coir Board or any other Institution/agency of GOI/State Govt. to replicate the NSIC model of successful “Rapid Incubation Model”. Rapid incubation model is a mix of “promotion of entrepreneurship and skill development” and involves setting up of live “demo projects”. Private partner institutions and entities can also set up livelihood incubation centres under PPP mode with the aforesaid institutions, namely: NSIC, KVIC or Coir Board or any other Institution/agency of GOI/State Govt. One-time grant of 100% of cost of Plant & Machinery other than the land and infrastructure or an amount up to INR 100 lakh whichever is less to be provided for incubators under the designated agencies, whereas, in case of incubation centres to be set up under PPP mode, one-time grant of 50% of cost of Plant & Machinery other than the land and infrastructure or INR 50.00 lakh, whichever is less to be provided. The total allocated budget under this head would be INR 62.50 Crorefor setting up 80 LBIs adequately skilling a targeted 104000 number of youth over a period of 3 years.

The fourth component is to set up Technology Business Incubators (TBI) at twin levels, i.e. supporting existing incubation centres operated currently under different Ministries and Departments of the Government of India or Institutions including National / Regional level institutions of GOI / State Governments to set up such centre dedicated to incubation and enterprise creation in the area of Agro based Industries and also new incubation centres to be set up by eligible private institutions including Industry Associations, along with the Academic Institutions, R&D laboratories, Universities, Government entities and Technology Parks. Region wise, Crop wise, Product wise, Process wise and Industry Vertical wise Incubation Centres will be promoted. The existing incubators under different Ministries would be required to provide built up covered space with electric power & water connections, any other forward/backward linkages and required manpower resources for both the centres to be created within the existing incubators and also for the new incubators.One-time grant of 50% of cost of Plant & Machinery other than the land and infrastructure or an amount up to INR 30 lakh whichever is less to be provided for the existing incubators to set up incubators in agro based industries, whereas, in case of new incubation centres to be set up, one-time grant of 50% of cost of Plant & Machinery other than the land and infrastructure or INR 100.00 lakh, whichever is less to be provided. The Accelerator workshop programme would also facilitate the process of entrepreneur creation and scaling up the existing talent pool. The total allocated budget under this head would be INR 61.50 Crore setting up 30 TBIs.

The last important component is to create a framework for Start-up Promotion through Small Industries Development Bank of India (SIDBI) by using innovative means of finance like Equity, Quasi-Equity, Angel fund, Venture capital fund, Impact funds, Challenge funds etc. to enable ideas/innovation with creativity and scalability to come to the fore and convert these into commercial enterprises with specific outcomes and within a specific time period. A fund of Funds will be created under SIDBI for the purpose and INR 60 Cr earmarked for the same.

Present on the occasion were Shri Giriraj Singh, MoS, MSME, Shri Madhav Lal, Secretary, MSME and Senior Officials/Officers of the Ministry.

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