NIDHI-PRAYAS: Grant for Hardware Startups and Early-Stage Innovators

The National Initiative for Developing and Harnessing Innovations (NIDHI) - PRomoting and Accelerating Young and Aspiring technology entrepreneurs (PRAYAS) is a flagship program launched by the Department of Science and Technology (DST). It specifically addresses the 'funding gap' faced by innovators during the ideation-to-prototype transition. For hardware-based startups in India, NIDHI-PRAYAS serves as a vital bridge to transform conceptual designs into tangible functional products.

What is this scheme?

NIDHI-PRAYAS is a pre-incubation grant designed to support young innovators by providing financial assistance and access to infrastructure (PRAYAS Centers). The scheme focuses on hardware-based innovations, allowing entrepreneurs to build prototypes and test their viability before seeking full-scale venture capital or commercial loans.

Who is eligible?

• The applicant must be an individual innovator or a founder of a startup.
• The startup must not be more than 7 years old from the date of incorporation.
• Innovators must be Indian citizens with a valid Aadhaar card.
• The focus must be on hardware-based products/technologies; pure software projects are typically not supported.
• Student innovators must have a faculty mentor or be part of a recognized incubation center.
• The innovator should be willing to pursue the project full-time for the duration of the grant.

How much money?

A grant of up to ₹10 Lakhs is provided per project for prototype development.

Documents needed

1. Detailed Project Report (DPR) or Prototype Plan
2. Proof of Indian Citizenship (Aadhaar, Passport)
3. Company Incorporation Certificate (if applicable)
4. Educational Qualification Certificates
5. Declaration of no previous grant for the same idea
6. Letter of support from a certified PRAYAS Centre (PC)

How to apply (step by step)

1. Identify and contact a recognized NIDHI-PRAYAS Centre (usually hosted at TBI or IITs).
2. Prepare a comprehensive proposal outlining the problem, solution, and prototype development roadmap.
3. Submit the application through the official portal of the chosen PRAYAS Centre during their call for applications.
4. Undergo a screening process by a local management committee.
5. Present the idea/pitch to the Project Evaluation Committee (PEC).
6. Upon selection, sign a grant agreement and receive the first installment of funding.
7. Utilize the funds and PRAYAS center facilities to develop the prototype within 12-18 months.

Important dates

Conclusion

NIDHI-PRAYAS is a game-changer for India's hardware ecosystem, de-risking the early stages of product development. By providing both capital and physical infrastructure through PRAYAS Centres, it ensures that brilliant engineering ideas do not fail due to a lack of initial funding. Aspiring founders should keep a close watch on the notifications from DST-recognized incubators to apply for this competitive grant.