Under the scheme, each Business Incubator (BI) is eligible for funding between ₹4 lakh and ₹8 lakh per incubatee or idea, with a maximum ceiling of ₹62.5 lakh. In addition to idea-specific funding, every approved BI receives support for essential components required to run the incubation facility. This includes ₹2.50 lakh for infrastructure upgrades, ₹1.28 lakh for orientation and training of incubatees, and ₹0.22 lakh for administrative expenses, bringing the total sanctioned assistance per incubator to ₹66.50 lakh.
The scheme is open to individual innovators and Micro, Small and Medium Enterprises (MSMEs) with concepts ready for commercialisation. Applications must be submitted to a recognised host institution, which may include IITs, NITs, engineering colleges and various national research bodies. A full list of eligible host institutions is available on the official MSME website.
Technical institutions seeking to function as host incubators can apply directly to the Office of the Development Commissioner (MSME) or their nearest MSME Development Institute following the release of a Request for Proposal (RFP) or Expression of Interest (EoI). Individuals and MSMEs, meanwhile, can approach their nearest listed host institution for consideration under the scheme.
The initiative underscores the government’s commitment to nurturing a strong innovation ecosystem by equipping emerging entrepreneurs with the financial and institutional backing needed to transition ideas into commercially viable ventures. By prioritising indigenous innovation and structured incubation support, the scheme aims to accelerate the growth of new enterprises and strengthen India’s MSME sector.
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