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The ministry of small, micro and medium enterprises (MSME) has decided to continue with its scheme of development of small and medium enterprises (SME) through incubators in the twelfth five year plan.
The objective is to promote generation of new ideas in the field of mechanical engineering, food processing, chemical, and electronic and software and engineering in genera at a nascent stagel.
In meeting held recently, the ministry presented that till date, more than 80 ideas have been commercialised in various sectors business. In the 12th plan, the ministry proposes to promote around 400 ideas by creating additional 100 odd host institutes.
The main objective of the scheme is to promote emerging technological and knowledge-based innovative ventures that seek the nurturing of ideas from professionals beyond the traditional activities of Micro, Small & Medium Enterprises (MSMEs).
Under this scheme of Ministry of MSME, “Business Incubators” (BIs) are to be set up under Technology (Host) Institutions which are generally the Indian Institutes of Technology (IITs), National Institutes of Technology (NITs), engineering Colleges, Technology Development Centres, Tool Rooms, et and other recognized R&D&/or Technical Institutes/Centres, Development Institutes in the field of Paper, Rubber, Machine Tools, etc.
The focus of the scheme is to provide support to the incubation of ideas from the very basic level which would have otherwise lost for want of support. The expectations are that a sizeable percentage of the incubates or promoter of ideas would be graduating to higher levels of operation, that would then require other levels of support under other schemes/organisations and from Venture Capital or Angel Funding, said official sources. This scheme will help to keep the idea alive till the next level of funding or marketing.
Under the scheme, the government will provide assistance of up to 75% to 85% of the project cost up to the maximum of 8.00 lakh per incubatee/Idea. Each Business Incubator (BI) is allowed to nurture 10 innovative ideas and seek government assistance up to a maximum of Rs.62.25 lakh and in addition Rs.3.78 lakh for infrastructure and training under the scheme.
In line with the overall target set by the Prime Minister’s National Council on Skill Development, the Ministry has taken up skill development as a high priority area. Under the Entrepreneurship/Skill Development Programmes, the ministry has fixed target to train 42.65 lakh persons during XIIth Plan through its various schemes being implemented by different organization.
The ministry proposes to make additional financial outlay for National Small Industries Corporation Ltd. (NSIC) with more equity support for enhancing their efforts to create market for products of MSMEs. Similarly, Khadi and Village industries Commission (KVIC) would be strengthened to provide market to village industries along with continuation of financial assistance to MSMEs for participation in domestic and international exhibitions/ trade fairs.
