India has witnessed an upsurge in terms of enterprises that are technology-driven and knowledge-based. Be it in the field of conventional businesses in IT and ITES, the sudden rise in the number of startups and new ventures has taken the country by surprise. Encouraged by the ecosystem that motivates them to chase their dreams, students are giving lesser preferences to the option of securing a job through campus placements. However, initial support to startups has been the one deterrent when it comes to the process of launching. Anticipating the current situation and to empower the younger generation to acclimatise themselves to an entrepreneurship and innovation culture, the Department of Science and Technology has initiated a programme called New Generation Innovation And Entrepreneurship Development Centre (NewGen IEDC).
New Generation Innovation And Entrepreneurship Development
NewGen IEDC is a programme launched by the National Science and Technology Entrepreneurship Development Board under the Department of Science and Technology, Government of India. This programme aims to inculcate the spirit of innovation and entrepreneurship among the Science and Technology youth, support and encourage the startup creation through proper guidance, mentorship and support. With the implementation of this program into academic institutions, students would be encouraged to take up innovative projects with the possibility of commercialisation.
NewGen IEDC also has the intention to spread the message of entrepreneurship and to create the culture of entrepreneurship in the Host Institution. With the help of a trained faculty in the nuances of entrepreneurship, a vibrant entrepreneurship culture could be created among the students. This way, a few of the Job Seekers would be transformed into Job Generators by opting for the entrepreneurial route.
Mission of NewGen IEDC
The mission of NewGen IEDC is the following quote.
“To promote the knowledge-based and technology-driven startups by harnessing the minds of the youth and their potential for innovation in an academic environment.”
Objectives of NewGen IEDC
The following are the key objectives of the NewGen IEDC programme.
- To direct the energy and the knowledge of the youth towards the purpose of being active partners in the economic development process.
- To promote and catalyse the development of innovation-driven and knowledge-based enterprises and to promote the employment opportunities among the youth mainly, students.
- To inculcate a culture that embraces innovation-driven entrepreneurship.
- To be an institutional mechanism to provide various services that includes information on every aspect of enterprise building to budding Science and Technology entrepreneurs.
Features of NewGen IEDC
The following are the essential features of the NewGen IEDC programme.
- The NewGen IEDC programme is a five-year programme that would be implemented in an educational institution.
- A maximum of 20 new projects would be supported in a year.
- The projects should belong to the students and should comprise of a high degree of innovation and commercial viability.
- The projects have the option to be multi-disciplinary in nature and must be executed by teams comprising of students drawn from different levels.
- The projects must also be commercially viable in a high degree in order to be a potential startup by the students.
Functions of NewGen IEDC
Below are the functions of the NewGen IEDC programme.
- To support, motivate and mentor the students for identification, development and commercialisation of their own innovative ideas.
- To initiate a targeted number of innovative student projects every year for the development of a new project.
- To organise Business Plan Competitions, Innovation Camps and Hackathons for the purpose of active involvement of the industry and alumni.
- To assist and guide prospective entrepreneurs on multiple aspects like preparing project reports, obtaining approvals for projects, loans and facilities from agencies of the support system, information on technologies and so on.
- To arrange interactions with bankers, entrepreneurs, professionals and potential customers and to create a mentorship scheme for student innovators.
- To facilitate the creation of an entrepreneur’s club/ E-Cells in the college in order to foster a culture that supports entrepreneurship among the youth.
Criteria for Institution Selection
The following are the conditions that have to be fulfilled by an institution in order to set up NewGen IEDC.
- The institution must be a University, Deemed University, Premier Institutes or Colleges that offer courses in Engineering, Science or Technology at the degree level or above for a period of at least 5 years. For a college or institute, it must be duly recognised, affiliated, whereas, for private institutions, it must be supported by a Trust or a Society registered under the relevant Acts besides being recognised or affiliated to AICTE or Universities.
- Qualified and dedicated faculty in different disciplines along with a proper Research and Development base and background in the industry related activities, must be accessible.
- Availability of at least two faculty members trained in Entrepreneurship through the DST sponsored Faculty Development Programme.
- A minimum of 5000 sq. ft. of an area dedicated to housing the NewGen IEDC with the access to facilities like water, electricity, telephone and internet connectivity.
- Availability of laboratories, workshops and computational facilities.
Library with a great collection of journals and books.
- Experience in the Entrepreneurship Development and Promotion and Industry related activities like Consultancy, Testing, Product Development, Calibration and so on.
Budget and Funding
Funding Mechanism & Financial Guidelines
The Host Institution should submit the proposal to set up a NewGen IEDC as per the notification to EDII, Ahmedabad. The financial assistance to the chosen institutions for the establishment of NewGen IEDC, towards its one-time establishment cost and recurring expenditures like Project Development Cost, Training, Travel and so on, up until 5 complete operational years would be provided.
The NSTEDB would offer limited one-time non-recurring financial assistance to a maximum of INR 25 Lakhs. The non-recurring grants would be offered for the establishment cost, furnishing cubicles for startups, purchase of computers with printers, UPS, library books, laptop, journals, multimedia projector, office communication equipment and others like 3D printers, prototyping equipment or software and shared devices. The grants cannot be used for the funding of purchase of building or land.
The recurring budget would be provided for every year of operation for a maximum of 5 years. This maximum number of projects by students that would be supported are as follows:
|Number of Projects||10||15||20||20||20||85|
|Serial Number||Budget Head||Amount in INR Lakhs Per Annum (Maximum Project)|
|1||Prototype Development Grant at INR 2.50 Lakhs per Project||25||37.5||50||50||50|
The recurring costs would include the honorarium to mentors and the NewGen IEDC co-ordinator, travel, expense for the advisory board and the review meetings, contingencies and miscellaneous expenditures.
The Prototype Development Grant of INR 2.5 Lakhs per project would be used to cover the following expenditures.
- A maximum amount of INR 25,000 to the mentor for the guidance provided to the project team.
- A maximum amount of INR 25,000 per student group as a stipend.
- An amount of INR 2 Lakhs for the cost of raw materials, prototype development cost, external vendor or consultant fees. If this amount crosses the stipulated amount of INR 2 Lakhs, then the additional expenditure would be borne by the student team, college or institute.