Support for Entrepreneurial and Managerial Development of MSMEs Through Incubators

Grainmart’s complete guide to availing Support for Entrepreneurial and Managerial Development of MSMEs through Incubators. India as a country is competitive as well as innovative but lacks infrastructure and support to nurture the same. In India, entrepreneurs constantly struggle to get their innovative ideas into existence. In addition, their success despite impacting the advancement in technology, also plays a critical role in boosting our economy. Following which the government implemented Support for Entrepreneurial and managerial development of MSMEs through Incubators in the financial year 2019-20.

The government plans to incubate eligible individuals or industries through Host Institutions (HI) or Business Incubators (BI) by providing Financial Assistance. The said assistance shall aid in:

  • To nurture the idea (up to 15 lakhs to the HI)
  • Capital for plant setup and machinery (up to 1 crore to the HI)
  • Seed capital support fund for startups (up to 1 crore to the start-up or industry)
Current HI/BI Proposals under Support for Entrepreneurial and Managerial Development of MSMEs through Incubators

The key goal of the scheme is to promote and support Innovation. Functions with the following prime objectives:

  • To incubate creative ideas from individuals through HI (Host Institutes) including technical colleges and other research institutes.
  • Implementing the latest manufacturing technologies into present industries.
  • Encourage MSMEs to engage with enablers to support expansion by developing design strategies and executing them.
  • Funding potential startups with soft loans
  • Motivate to forge connections and thereby properly commercialize their products.
Salient Features

The Incubation scheme provides substantial financial assistance. Also supports the growth of creative ideas and MSMEs in various ways:

  • The Incubator scheme provides SEED Capital support fund for setting up of Startups which assist in up to 1 Crore capital. Further, this seed capital for eligible and potentially good ideas are provided through:
    • Soft Loan
    • Equity Participation
    • Grant
    • Combination of the above
  • The program provides a network, linking them to other manufacturers to commercialize. Additionally, gain professional assistance to make the enterprise successful and achieve growth.
  • In the current competitive period, technology-based new enterprises are at high risk of achieving success but simultaneously they are the ones that show promise of high growth in the industry, the scheme provides support with Business incubators which give a high enabling environment for a better chance of success of such enterprises.

Ideas Proposals Under Support for Entrepreneurial and Managerial Development of MSMEs through Incubators

Click here to see the current List of Ideas approved under the scheme.


The following list of candidates/ institutes are eligible to apply to the Incubation scheme:

  • Individuals such as Students or Entrepreneurs of various institutes such as Technical colleges, Research Institutes, Universities, NGOs involved in similar activities or any individual under any Institute/Organisation under the Govt. of India with a potential Creative and Technical Idea.
  • Any industry classified under MSME under Government of India with a valid UDM number.

The above-listed Individuals can apply for Incubation under Host institutes or Business Incubators.

Any Technical Institute that wants to become a host institution for supporting the Incubation scheme can apply to the MSME-DC. Further, priority given to Institutes in the North-East Region for supporting Bls.

The Hl’s /Bl’s must encourage participation from women/ SC/ST candidates for the inclusive implementation of the scheme. 

Click here to see the Proforma of Host Institutions or Business Incubator for Submission of Project Proposals.

Financial Assistance to HI

A grant maximum of 15 lakhs provided per idea with the project span of one, out of which MSMEs contribute 15%, whereas it is 0% for students. If the beneficiary drops from the project midway the HI can engage other candidates to continue the project if the project is considered worthy.

Fund Released in two installments:

  • The first installment i.e 70% of the sanctioned amount.
  • The second installment i.e 30% of the sanctioned amount. This will be released on submission of the physical verification report and the utilization of 80% of funds from the previous installment.
 Financial Assistance for Plant and Machinery

HI’s are provided with funds up to 1 crore for procurement and installation of relevant plant and machinery. This might include the software necessary to support research and provide basic facilities to the recipients.

The fund is released in two equal installments:

  • The first installment of the approved amount will be 50%. Released after the approval of the proposal. It is desirable to be utilized within 6 months from the release date
  • The second Installment of the remaining 50% released on providing a physical verification report of the utilization of prior installment. This fund is advised to be utilized within 3 months from the release date.
Financial Support for Potential Start-ups

The Incubation scheme aids by providing seed capital support up to 1 crore and appropriate incubation to help establish the startup and fees paid to Enablers.


Any MSME or individual (can be a student of the institute or not) can approach the nearest Host institute in the list of institutes HERE and apply to be under the incubation scheme

As mentioned in the eligibility criteria any institute that qualifies and wants to be a host institute under the Incubation scheme can approach the nearest MSME-DI or to the Development Commissioner of MSME to apply and become a HI.

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Download the application form for Entrepreneur/Incubatee

Contact the Authority

Principal Director, MSME- TDC (PPDC), Foundry Nagar, Agra- 282006

Click here for detailed and official guidelines of the scheme


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