- Introduction
- What is it
- Objectives
- Components
Introduction
NIDHI (National Initiative for Development and Harnessing Innovations), an umbrella program is pioneered by the Department of Science & Technology (DST), Government of India, for nurturing ideas and innovations (knowledge-based and technology-driven) into successful startups.
What is NIDHI program?
- Department of Science & Technology has launched a NIDHI program (National Initiative for Developing and Harnessing Innovations) under which programmes for setting up of incubators, seed fund, accelerators and ‘Proof of concept’ grant for innovators and entrepreneurs have been launched.
- Under NIDHI, PRAYAS (Promoting and Accelerating Young and Aspiring innovators & Startups) programme has been initiated in which established Technology Business Incubators (TBI) are supported with PRAYAS grant to support innovators and entrepreneurs with grants for ‘Proof of Concept’ and developing prototypes.
- A maximum grant of Rs. 220 lakh is given to a TBI for establishing a PRAYAS Centre which includes Rs.100 lakh for PRAYAS SHALA, Rs. 20 lakh for operational cost of PRAYAS Centre and maximum of Rs. 10 lakh to one innovator for developing prototype. Funding for ten innovators is given to the TBI in a year.
Need for NIDHI
- The Indian startup ecosystem has seen a lot of activity in terms of growth of number of startups that emerged and also in terms of deals for funding that got closed and amount that were funded. Against this bright background, however, the challenge that the young student innovators face is to raise the initial funding for his/her startup. Having reached the stage where s/he has done the technology demonstration and has a working prototype, the innovator is now looking for preparing his business plan, product validation and launch of startup. Product development and validation is his/her major challenge at this stage.
- Startup launch, product development and validation requires some investment part of the young innovator. The initial funds needed at this time usually comes from friends, family, Angel investors and HNI who would invest in a early stage startup.
- However, when technology is untested and market is unsure making returns uncertain, the risk of investment is too high for conventional investors including the Venture Capitalists to pitch in. The funds required at this pre – incubation stage is not a very large fund by volume but it does certainly gives the startup and the young innovator a breather in this competitive space.
- NIDHI, by design connects and strengthens all the links of the innovation chain from scouting to sustaining to securing to scaling to showcasing, because a chain is only as strong as its weakest link. The key stakeholders of NIDHI includes various departments and ministries of the central government, state governments, academic and R & D institutions, mentors, financial institutions, angel investors, venture capitalists, industry champions and private sectors.
Objectives
- To take forward student innovations in IEDC / NewGen IEDC programme to commercialization stage.
- To promote student startups.
- To accelerate the journey of idea to prototype by providing initial funding assistance.
Components of NIDHI
There are 8 components of NIDHI that support each stage of a budding startup from idea to market.They are as
- NIDHI GCC – Grand Challenges and Competitions for scouting innovations
- NIDHI – PRomoting and and accelerating Young and Aspiring Innovators and Startups (NIDHI-PRAYAS) – Support from Idea to Prototype
- NIDHI-Entrepreneur In Residence (NIDHI-EIR)-Support system to reduce risk
- Startup-NIDHI
- NIDHI-Technology Business Incubator(TBI)-Converting Innovations to start-ups
- NIDHI-Accelerator-Fast tracking a start-up through focused intervention
- NIDHI-Seed Support System (NIDHI-SSS)-Providing early stage investment
- NIDHI Centres of Excellence (NIDHI-CoE)-A World class facility to help startups go global
