Program Details
Sona Comstar has partnered with IIT Delhi to support innovative solutions from startups in this area through the Sona Comstar IIT Delhi Innovation Program.
1. The Aim of the Program
It is felt that innovative mobility solutions can change the way we travel. The need for improvement over existing solutions exists in various areas including, but not limited to:
- Improvements in EV technologies such as extending range through battery capacity improvements, battery management, fast-charging infrastructure, efficient motors, and mobile charging solutions for emergencies.
- Vehicle diagnostic solutions to understand maintenance issues.
- Autonomous functions in vehicles, especially pertaining to safety and convenience, along with innovative last-mile connectivity solutions.
2. Criteria for Eligibility
Concepts and ideas relating to e-mobility, smart mobility, and solutions for safe and clean mobility with IP potential and strong translational/commercial prospects.
- A product or process innovation with substantial market potential or disruptive capability.
- Clear objectives in terms of validating the proof of concept.
- Projects focused on generating the scientific data required for de-risking the technology by reducing uncertainties, thereby improving readiness for investors and startup funding programs.
3. Criteria for Project Leader
The Entrepreneur Project Leader/Principal Investigator must be an Indian citizen and technically qualified to undertake the project. The Project Leader must have completed postgraduate training in science or engineering.
The entrepreneur is required to formally register a company before or after joining the program if not already operating as a startup. Startup formation is expected to be completed within six months of joining the incubation program; otherwise, further support may be discontinued.
The applicant must provide an undertaking stating that they will terminate their association with their current employer and take up the project full-time if the grant is approved. A resignation, relieving, or retirement letter will be required before the final approval and release of the grant.
4. Criteria for Eligible Startups
The company should be registered as a Private Limited entity under the Indian Companies Act, 2013. The date of incorporation must be within the past five years from the date of application to qualify as a startup under this program. The annual cash inflow from funding, grants, revenue, or operations must not exceed ₹2.5 crore in any financial year since incorporation. Resident Indian citizens must hold a majority stake (>51%) and retain control of the startup.
Major shareholders, promoters, or directors holding more than 20% equity should not be directors or promoters of ineligible companies. This condition may be waived in cases of bona fide serial investors.
5. Duration for Incubation and Funding Support
Incubation and funding support will be provided over a period of 24 months in milestone-based installments aligned with the project's objectives. Mentorship and networking opportunities will continue even after the incubation period is completed.
6. Support Provided to Startups in this Program
6.1 Financial Support
Financial support of up to ₹80 lakhs will be provided as a grant-in-aid, released in four or more tranches based on progress achieved against predetermined project milestones.
| Installment | Released At | % of Total Budget |
|---|---|---|
| 1st | Signing the agreements for incubation | Max. 30% |
| 2nd | Completion of 1st milestone | ~20% |
| 3rd | Completion of 2nd milestone | ~20% |
| 4th | Completion of 3rd milestone | ~20% |
| 5th | Submission of final report / exit from the incubator | ~5% |
(The fifth and final tranche will be released as reimbursement against actual expenditures.)
The General Guidelines for Budget Utilization
- A separate no-lien account must be opened to receive this funding. This account should not be used for any other purpose or for other funding/revenue streams of the startup.
- The following budget heads are permitted under the scheme:
| Budget Head | Description |
|---|---|
| Equipment | A maximum of 25% of the total project budget may be utilized for acquiring equipment that is not available at the incubator and cannot be easily outsourced. The startup must provide justification for the equipment required to complete the project. |
| Human Resources | Up to 30% of the total project cost may be utilized for salaries and hiring manpower. No individual may draw a monthly salary exceeding ₹50,000 under the project. |
| Consumables | Expenditure on consumables is permitted provided the procured items can be justified for their relevance and utility in the project. |
| Contingency | Up to 7.5% of the total budget may be utilized for project-related travel within India and other genuine miscellaneous expenses. |
| Outsourcing | A maximum of 30% of the total project budget may be used for outsourcing activities such as paid equipment usage, consultancy services, prototype design and manufacturing, advanced manufacturing facilities, market research, and related services. |
| Patent Filing | Up to ₹3 lakhs may be utilized towards Intellectual Property Rights (IPR) filing costs. |
6.2 Incubation Support
Incubation space and support will be provided in accordance with institute norms regarding engagement and equity terms, as per the institute's guidelines.
6.3 Mentoring Support
- Entrepreneurs will receive technical guidance and mentorship from IIT Delhi faculty members, who may serve as scientific advisors to the startups.
- The review, evaluation, and monitoring process will provide valuable feedback and recommendations from experts representing IIT Delhi, industry, and other institutions.
- FITT will organize periodic events that provide learning opportunities, visibility, and networking for incubated startups.
- FITT will conduct business mentorship programs and workshops to strengthen business planning and market outreach. FITT's IP Cell will assist incubatees with IP-related services on a need and availability basis, and innovators will also gain access to FITT's network of investors and venture capitalists.
7. Application Procedure
a. A national call for applications will be announced once every year.
b. The application template can be downloaded from the FITT website. Completed applications should be submitted via email to fitt00074@iitd.ac.in.
Applicants are requested to provide sufficient information within the prescribed word limits to enable an informed and fair evaluation. Proposals should be self-contained, with any additional supporting documents submitted separately.
c. Submitted proposals will be treated as final, and requests for modifications after submission will generally not be entertained.
d. Providing incorrect or misleading information in the application may result in disqualification.
8. Evaluation Process
a. The first stage of evaluation will be conducted by a technical expert committee comprising representatives from academia, research organizations, and primarily industry. Proposals will be assessed on technical innovation, feasibility, technology readiness level (TRL), and preliminary technical data.
b. Shortlisted applicants will be invited to present their techno-commercial plans before a selection committee consisting of representatives from industry, financial institutions, investors, and FITT. Evaluation will consider technical strength, entrepreneurial intent, intellectual property potential, team capability, and business plan.
9. Due Diligence, Project Monitoring, and Progress Reviews
-
FITT will conduct a comprehensive due diligence process that includes:
- Reconfirmation of eligibility.
- Legal, technical, and financial due diligence.
- Verification that the applicant has access to the required resources, infrastructure, industry partners, and establishments for successful project execution.
- Verification that all safety and environmental, health, and safety (EHS) requirements are satisfied.
- Budget justification, including quotations where required, while ensuring compliance with program budget caps.
- Discussion with the innovator to finalize project milestones and the grant disbursement schedule.
10. Submission of Final Reports and Exit from Incubator
- Successful completion of the project in line with the approved objectives is expected from the startup.
-
On completion, the startup must furnish reports containing the following details:
- Technical progress against each objective and milestone finalized during the due diligence process.
- Details of the final deliverable of the project and the Technology Readiness Level (TRL) of the product.
- Progress towards commercialization, market readiness, expected time to market, follow-on funding generated, and related business outcomes.
- Detailed financial reports audited and certified by a Chartered Accountant, including expenditure under each budget head along with bank statements verified by the bank.
- The address where the company will relocate after exiting the incubator.
- Details of future support required and the company's plans and projections for the next three years.
- No Dues Certificate from the incubator.
- Any other information requested by FITT.
