DST launches a 100cr program NIDHI to support startups

The Department of Science and Technology has launched a Rs 100-crore program called National Initiative for Developing and Harnessing Innovations (NIDHI), aimed at helping startups across the country in terms of both funding and incubation support.

DST will launch three major schemes under NIDHI namely, NIDHI Prayas, NIDHI Seed Support System, and NIDHI Centres of Excellence.

Under NIDHI Prayas, The department plans to set up 10 Prayascentres across incubation centres supported by it to address the gap between idea and prototype funding.

The seed support system under NIDHI will aid early stage startups with seed funding. It will help them expand and bring their products and services into the market. In the next stage, NIDHI Centres of Excellence will help established startups for further expansion.

These centres will mentor and support successful startups to go global and expand themselves further. Notably, DST has so far supported more than 100 technology-focused incubators. It usually grants an amount up to 15 crores to set up an incubator. The exact amount depends on the location of the incubator as well as the type of startups supported by incubator. It gives an additional grant to incubators for seed funding. The incubator invests that amount into startups in the form of debt or equity.

DST is now planning to launch 15-20 more similar incubators this year. It is also considering to increase the funding limit to startups at these incubators up to 1 crore. Commenting on the same, Harkesh Mittal, head of the National Science and Technology Entrepreneurship Development Board at the Department of Science and Technology said: "DST will soon revise the total funding limit to startups at supported incubators from up to Rs 50 lakh to Rs 1 crore. The revised investment limit is soon to be implemented."