Scheme for Promoting Innovation, Entrepreneurship and Agro Industry

Scheme for Promoting Innovation, Entrepreneurship and Agro Industry

Question - Innovation is the latest buzzword for effective entrepreneurial ventures and agro industries. Discuss the Scheme for Promoting Innovation, Entrepreneurship and Agro Industry that was recently launched by the MSME Ministry.

The Scheme for Promoting Innovation, Entrepreneurship and Agro Industry was launched by the MSME Union Ministry.

• Scheme was formulated for establishment of the network of technology centres

• It was also set up to establish incubation centres for accelerating entrepreneurial ventures

The scheme was put together following the Budget 2014-2015 speech where the following goals
were enunciated:

• Establishment of Technology Centre Network to Promote Innovation, Entrepreneurship and Agro-Industry

• Establishment of a fund of INR 200 crore for the same

• Programme for facilitation of forward and backward linkages with multiple chains of manufacturing and service delivery

• Nation-wide District level Incubation and Accelerator Programme for incubating ideas and providing support for entrepreneurial ventures and job creation

• Establishment of 500 new incubation centres across the nation by 2016

Components of the Scheme

1. Scheme aims to create a database of technologies available with various Government/private agencies and establishment of Network of Technology Centres for promoting entrepreneurial ventures and supporting their owners
2. Development of a skilled HR/Human Resources for mentoring and supporting incubates at incubation centres.
• As per this component, efforts have been made for the identification, support and expansion of the role of competitive Indian MSMEs on an international scale

• Mentoring support to MSMEs through NSCI or other agencies of MSME Ministry

• Capacity building through awards, surveys, studies, exposure visits, monitoring and evaluation via consultants; total estimated cost to be INR 17.75 crore

3. Establishment of LBI/Livelihood Business Incubators as per the National Small Industries Corporation/NSIC, KVIC/Khadi Village Industries Commission or Coir Board or any other institution/agency of central/state government for replication of the NSIC model of effective Rapid Incubation Model promoting a mix of entrepreneurship and skill development; involves setting up live demo projects

• Private institutions and entities can also establish these centres under PPP mode with aforesaid institutions namely NSIC, KVIC or Coir Board or any other governmental agency/organisation

• A one time grant of 100% cost of plant and machinery other than land or infrastructure or amount of INR 100 lakh whichever is less to be offered for incubators under the agencies designated for this purpose

• Incubation centres have to be established under the PPP mode with one time grant of 50% of cost of plant and machinery with the exception of land and infrastructure or INR 50 lakh whichever is less to be provided

• Total allocated budget under this head is INR 62.50 crore for establishment of 80 LBIs for skilling of 104000 number of youth for a duration of 3 years

4. The establishment of Technology Business Incubators/TBI at dual levels that is, supporting existing incubation centres under different ministries and departments of GoI or national/regional level institutions of central/state governments for establishing a centre for incubation and enterprise creation in agro-based industries

• Fresh incubation centres to be established by eligible private institutions including:
- Industry associations
- Academic Institutions
- R&D labs
- Universities
- Government entities
- Technology parks
- Incubation centres will also be provided in the following categories: process, industry vertical, crop, product and process wise

• Existing incubators will be required to provide the following:
- Built up covered space with electric, power and water connections
- Other forward/backward linkages
• One time grant of half of the cost of plant and machinery other than land or infrastructure or amount of INR 30 lakh (whichever is lower) to be provided to existing incubators to establish more centres in agro based industries

• One-time grant of 50% of the cost of plant and machinery other than land or infrastructure or INR 100 lakh whichever is lower to be provided

• The accelerator workshop programme will also spur entrepreneurial ventures and scaling up of an existing talent pool

• Total allocated budget under this category is INR 61.50 crore for establishment of 30 TBIs

• 5. The last component is the framework for promoting start-ups through SIDBI or Small Industries Development Bank of India through innovative financing options such as:
- Equity Fund
- Quasi-Equity Fund
- Angel Fund
- Venture Capital Fund
- Impact Funds
- Challenge Funds
- This is for enabling ideas that are innovative, creative and scalable to come to the fore
- Funds will be created by SIDBI and INR 60 crore will be earmarked for the same

Facts and Stats

• Scheme is oriented towards convergence of advantages and knowledge of numerous stakeholders

• Idea is a platform where multiple stakeholders can work and address the employment needs of rural areas

• Partner institutions will be provided INR 3 lakh per innovative idea selected for nurturance

• For effective commercialisation and mentoring, grant of INR 1 lakh per year for 3 years and a maximum of INR 3 lakh will be provided

• INR 61.50 crore has been set aside for establishment of technology incubation centres

• Sum of close to 2 crore has been allocated for updating, creating and maintaining database of technology centres network