NIDHI-PRAYAS: A Guide to Getting Grants for Hardware Start-ups

The National Initiative for Developing and Harnessing Innovations - Promoting and Accelerating Young and Aspiring technology entrepreneurs (NIDHI-PRAYAS) is a flagship scheme by the Department of Science and Technology (DST). It aims to support young innovators by providing financial assistance to bridge the gap between a proof-of-concept and a market-ready prototype.

What is this scheme?

NIDHI-PRAYAS is a 'Proof-of-Concept' grant specifically designed for hardware-based innovations. Since hardware development is capital-intensive, this scheme provides a grant through PRAYAS Centres (Incubators) to help founders build physical products, reduce risk, and attract further investment.

Who is eligible?

• An individual innovator or a start-up founder with a hardware-based idea.
• The applicant must be an Indian citizen with a valid government ID.
• The innovator must be at least 18 years of age.
• If a start-up, the company must be less than 7 years old from the date of incorporation.
• The innovator should be incubated or willing to be incubated at a PRAYAS Centre.
• The idea must lead to a physical product, not just software or an app.

How much money?

The scheme provides a grant of up to ₹10 Lakhs per project for prototype development.

Documents needed

1. Aadhaar card and PAN card of the applicant
2. Detailed Project Report (DPR) explaining the prototype plan
3. Company Registration Certificate (if applicable)
4. Declaration of not having received similar grants for the same idea
5. Business model canvas or pitch deck
6. Quotes or estimates for raw materials or fabrication services

How to apply (step by step)

1. Identify a DST-supported PRAYAS Centre (Incubator) near you.
2. Wait for the 'Call for Applications' released by specific incubators.
3. Submit your application through the incubator's portal with a detailed prototype plan.
4. Shortlisted candidates are called for a presentation before a Project Management Committee (PMC).
5. If approved, sign an agreement with the PRAYAS Centre.
6. Receive funds in milestones and utilize them for fabrication, components, and professional services.

Important dates

Conclusion

NIDHI-PRAYAS is a game-changer for hardware entrepreneurs in India. By solving the 'valley of death' funding crisis at the prototype stage, it empowers innovators to take risks and build 'Made in India' products. If you have a solid hardware idea, keep a close watch on DST-approved incubators for the next application cycle.