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The Incubation Scheme is a government initiative designed to help innovators, start-ups and MSMEs turn promising ideas into workable, market-ready solutions. It supports the development of prototypes, product trials and early-stage commercialisation through recognised host institutes.
The Incubation Scheme is an MSME-focused programme that encourages the creation, development and commercialisation of innovative ideas. It empowers technical institutions, universities, R&D centres and similar entities to function as Host Institutes (HIs) or Business Incubators. These institutes guide innovators from concept development to prototype creation by offering financial assistance, technical mentorship and access to incubation facilities. The scheme helps MSMEs embrace new technologies and bridge the gap between ideation and market launch.
The table below summarises the essential aspects of the scheme for quick reference.
| Key Parameter | Details |
|---|---|
Scheme name |
Incubation Scheme (under Ministry of MSME) |
Key objective |
Financial assistance for idea development, plant and machinery, and seed capital |
Launched in |
May, 2019 |
Implementing body |
Ministry of Micro, Small and Medium Enterprises |
Primary beneficiaries |
Host Institutes, innovators, start-ups, MSMEs |
Application mode |
Online through the MSME portal |
Cost to apply |
No charge for innovators or MSMEs |
To understand the value of the scheme, consider the key benefits listed below.
Opportunity for eligible institutions to be recognised as Host Institutes.
Financial support for idea nurturing, prototype development and technology adoption.
Assistance of up to ₹15 Lakhs for approved ideas submitted through Host Institutes.
Support of up to ₹1 Crore for plant and machinery to strengthen incubation facilities.
Seed capital support for selected incubatees to accelerate commercial readiness.
Access to structured mentorship, technical expertise and innovation networks.
Stronger ecosystem for MSMEs to test, refine and scale innovative concepts.
You can review the eligibility requirements below before applying.
Technical colleges, universities, engineering institutes, R&D centres, Technology Centres and MSME-DIs may apply as Host Institutes.
NGOs and organisations involved in entrepreneurship development or incubation activities may also apply as HIs.
You may refer to the table below to understand the documents necessary for application.
| Document | Purpose |
|---|---|
Registration certificate of the Host Institute |
Verification and recognition as HI |
Institute profile and infrastructure details |
Assessment of incubation capability |
Project or idea proposal |
Evaluation of the concept submitted by the innovator |
Financial and technical plan |
Assessment of feasibility and funding need |
MSME registration (if applicable) |
Applicable for incubatees seeking commercialisation support |
Identity and address proof |
Verification of incubatee details |
You can follow the step-by-step guide below to apply for the scheme.
Visit the official portal of the Ministry of MSME portal.
Click on “HI Registration” from the top menu.
Fill up the form and click on the “Submit” button.
On successful registration, you will be redirected to the log in window.
Log in using your credentials and open the HI/BI dashboard.
Click on the “Apply for HI/BI Approval” and follow on-screen directions.
Fill in the necessary details as required and submit the form to complete the process.
You may also explore the schemes below that support early-stage innovation and start-up development.
| Scheme Name | Purpose |
|---|---|
Atal Incubation Centres (AIC) |
Supports the establishment of incubation centres to encourage innovation and entrepreneurship. |
Startup India Seed Fund Scheme |
Provides seed funding for proof-of-concept, prototype development and market-entry support. |
NIDHI iTBI |
Supports ideas for startup conversion via technology‐based incubators. |
The Incubation Scheme plays an important role in strengthening India’s innovation ecosystem by helping MSMEs and start-ups convert ideas into viable business solutions. If your enterprise is ready to expand further, you may consider business loans on Bajaj Markets to support working capital, equipment upgrades or growth requirements. These finance solutions can complement government-supported initiatives and help your business scale efficiently.
The objective of the scheme is to promote innovation among MSMEs by supporting the development of new products, technologies and processes. It encourages the transformation of ideas into commercially viable solutions.
Technical institutes, universities, engineering colleges, research centres, NGOs engaged in incubation and government-supported organisations can apply to become Host Institutes under the scheme.
The scheme offers up to ₹15 Lakhs for idea nurturing and up to ₹1 Crore for plant and machinery support. Selected incubatees may also receive seed capital based on project needs.
There is no cost for MSMEs, innovators or start-ups to submit an idea through a recognised Host Institute.
Applications are submitted online through the Ministry of MSME’s designated portal by Host Institutes and subsequently by incubatees.
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