Nidhi Eir Program

NIDHI Entrepreneur-in-Residence, abbreviated as NIDHI EIR, is an initiative created to cater to the aspiring or budding entrepreneurs by way of assisting them in pursuing promising technical endeavours. The program intends to grant subsistence to entrepreneurs from selected DST approved Technology Business Incubators. This article looks at the scheme in detail.

About Nidhi

NIDHI was initiated by the Department of Science and Technology (DST) as an umbrella program for nurturing knowledge-based and technology-driven ideas and innovations into successful startups. It would function on par with the national priorities and objectives and would strive to establish an innovation-driven entrepreneurial system. NIDHI intends to nurture start-ups by means of scouting, supporting and scaling of innovations. Its key stakeholders comprise of various departments and ministries of the Central Government, State Government, academic and R&D institutions, mentors, financial institutions, angel investors, venture capitalists and private sectors.

Funding and Financial Aspects

The Nidhi Eir Program will grant the budding entrepreneurs a fellowship amounting to Rs. 30,000 in a month. Prayas, the acronym for which is “Promoting and Accelerating Young and Aspiring technology entrepreneurs” would grant a sum of Rs. 10 lakhs to facilitate the translation of an innovative thought into a prototype. Also, the Technology Business Incubator which is playing the role of Programme Executing Partner (PEP) would receive an annual grant of up to Rs. 39.60 lakhs in a year, out of which Rs. 26 lakhs will be utilized for this initiative.

Objectives

The Government seeks to establish the following through this program:

Encourage the graduates to pursue entrepreneurship by according them with fellowship.
Assist deserving and budding entrepreneurs to carry on with their ventures without the involvement of any risks.
Grant subsistence to partially set off their opportunity costs.
Create, nurture and empower a pipeline of entrepreneurs for incubators.
Facilitate the entrepreneurs to form new establishments

It is being proposed that under the initiative, at-least 30% of the support recipients are converted into start-up companies; and at-least 10% of support recipients raise funds or investment for their companies within 18 months of extending the support.

Mode of Implementation

The task of implementing this program is vested with the Program Implementation Partner (PIP). Pune based Entrepreneurship Development Centre has been identified as the nodal agency and PIP for this scheme. The execution will be carried out at approved Technology Business Incubators (TUB), which is known as Program Executing Partner (PEP). Let us have a peek into the eligibility and prerequisites required for a PIP:

It should be a non-profit incubator approved and recognized by NSTEDB.
It should be operational for at-least three years with a proven track record of incubation.
It should consist of at-least 20 resident incubates.
It should be capacitated to generate a pipeline of incubates and accommodate the growth arising from the start-ups developed through this program.

Eligibility to Obtain NIDHI-EIR Support

The proposed beneficiaries of the initiative must be committed to explore new ideas and must be first generation entrepreneurs who do not benefit from any income. The recipient should not treat the benefit as a stop-gap arrangement to support them in their academic pursuits or transition between jobs.
The proposed recipient should showcase the potential to build a scalable technology business enterprise.
The proposed recipient should suggest a business idea in the prescribed format.
The proposed recipient needs to be involved in a full-time entrepreneurial pursuit.
The proposed recipient cannot be a promoter or a vital shareholder of any other company while applying for and receiving the grant.
Entrepreneurs carrying out business ideas with little or no technological innovation or with a shorter journey to commercialization are not recommended to be a part of the initiative.
The candidates seeking support must provide a layout of the investment.
Once the NIDHI-EIR raises funds or investments for their business ideas or endeavors, the support of grants will be abated from the date of receipt of the first tranche of funds.

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Frequently Asked Questions

Common questions about NIDHI EIR Program for Aspiring Entrepreneurs.

The NIDHI EIR (Entrepreneur-in-Residence) Program is an initiative created by the Department of Science and Technology (DST) to support aspiring or budding entrepreneurs in pursuing promising technical endeavors. It provides a fellowship of Rs. 30,000 per month to selected entrepreneurs and aims to nurture a pipeline of entrepreneurs for incubators.

The NIDHI EIR support is intended for first-generation entrepreneurs who are committed to exploring new ideas and do not benefit from any income. They should showcase the potential to build a scalable technology business enterprise, propose a business idea, and be involved in full-time entrepreneurial pursuit.

The approved Technology Business Incubators (TBIs) play the role of Program Executing Partners (PEPs) in implementing the NIDHI EIR Program. They receive an annual grant of up to Rs. 39.60 lakhs to facilitate this initiative, out of which Rs. 26 lakhs is utilized for the EIR support.

The objectives of the NIDHI EIR Program include encouraging graduates to pursue entrepreneurship by providing fellowships, assisting deserving entrepreneurs to carry on their ventures without risks, creating and nurturing a pipeline of entrepreneurs for incubators, and facilitating the establishment of new startups.

The NIDHI EIR Program is implemented through Program Implementation Partners (PIPs) and executed at approved Technology Business Incubators (TBIs), which are known as Program Executing Partners (PEPs). The Entrepreneurship Development Centre in Pune has been identified as the nodal agency and PIP for this scheme.

Once a NIDHI EIR entrepreneur raises funds or investments for their business idea or endeavor, the support of grants will be discontinued from the date of receipt of the first tranche of funds. This is to ensure that the support is provided to those in need during the initial stages of their entrepreneurial journey.

Under the NIDHI EIR Program, entrepreneurs receive a fellowship of Rs. 30,000 per month. Additionally, the "Prayas" initiative provides a grant of Rs. 10 lakhs to facilitate the translation of an innovative thought into a prototype.

The NIDHI EIR Program aims to convert at least 30% of the support recipients into startup companies and ensure that at least 10% of the support recipients raise funds or investment for their companies within 18 months of receiving the support.

To become a Program Executing Partner (PEP) for the NIDHI EIR Program, a Technology Business Incubator should be a non-profit incubator approved by NSTEDB, operational for at least three years with a proven track record of incubation, have at least 20 resident incubates, and be capable of accommodating the growth of startups developed through this program.

No, the NIDHI EIR Program is primarily focused on supporting entrepreneurs with technological innovations or ideas. Entrepreneurs carrying out business ideas with little or no technological innovation or with a shorter journey to commercialization are not recommended to be a part of this initiative.