NIDHI-SSS

National Initiative for Developing and Harnessing Innovations (NIDHI) is an umbrella programme conceived and developed by the Innovation & Entrepreneurship Division, Department of Science & Technology, Government of India, for nurturing knowledge-based and technology-driven ideas into successful startups. The programme works in line with national priorities and focuses on building an innovation-driven entrepreneurial ecosystem for socio-economic development through wealth and job creation.

NIDHI-Science & Technology Entrepreneurs Parks and Technology Business Incubators (STEP/TBIs) are institutional-linked facilities promoted by the Department of Science and Technology to nurture innovative and technology-led ventures during the critical startup phase. By providing specialized business support services, TBIs help startups survive and succeed in the marketplace. Around 90 TBIs have been established across institutions such as IITs, IIMs, NITs, NID, PSG, Manipal University, VIT, Amrita University, and others.

Objective

The sole objective of the NIDHI-Seed Support System (NIDHI-SSS) is to ensure timely availability of seed support to deserving incubatee startups, enabling them to take their ventures to the next level and succeed in the marketplace. The scheme also helps STEP/TBIs strengthen their startup pipeline while ensuring long-term sustainability through the success of incubated ventures.

Eligibility Conditions for Incubatee Startups

• The incubatee must be a registered company in India with a minimum of three months of residency at the STEP/TBI.
• The incubatee must be an Indian startup. Indian subsidiaries of multinational or foreign companies are not eligible. Overseas Citizens of India (OCI) and Persons of Indian Origin (PIO) are considered eligible Indian citizens under this scheme.
• The shareholding by Indian promoters in the incubated startup must be at least 51%.

Quantum and Disbursement of NIDHI-SSS

Under NIDHI-SSS, eligible STEP/TBIs may receive financial assistance of up to ₹1,000 lakhs from DST as a loan, investment, or a combination of both, for providing seed support to deserving incubatee startups. The grant is generally released in 2–5 rounds, with a maximum of ₹500 lakhs per round, based on the funding requirements of startups and the implementation capacity of the STEP/TBI.

• The implementing TBI establishes a transparent selection, monitoring, and disbursement mechanism through the Seed Support Management Committee.
• Seed support is provided only to physically resident registered incubatees based on the committee's recommendations and a legally vetted agreement between the incubatee and TBI.
• Support is provided only after appropriate due diligence.
• The funding primarily supports early-stage commercialization of indigenous ideas, innovations, and technologies.
• Typically, startups receive up to ₹25 lakhs. Exceptionally deserving startups may receive up to ₹100 lakhs. A startup can receive support only once, and agreements must define milestones, monitoring, repayment, recovery, and equity terms.

Broad Areas Covered Under NIDHI Seed Support

Seed support may be utilized for the following activities:

• Product development
• Testing and trials
• Test marketing
• Mentoring
• Professional consultancy from experts and academic institutions
• IPR-related activities
• Manpower for day-to-day operations
• Any other activity recommended by the Seed Support Management Committee.

Selection, Governance and Fund Management

Financing of startups under the TBI shall be undertaken with due diligence, efficiency, and care.

• Every implementing STEP/TBI constitutes a NIDHI-Seed Support Management Committee (NIDHI-SSMC) consisting of experts to evaluate startups seeking seed support.
• Selection process for incubatee startups:
  • Website and newspaper advertisements announcing seed support availability.
  • Call for applications.
  • Shortlisting based on eligibility criteria.
  • Evaluation and final decision by the NIDHI-SSMC.
  • Selection completed within a reasonable timeframe.
• The TBI executes a legal agreement with the selected incubatee before releasing the first installment. Future disbursements are milestone-based, and the agreement includes repayment schedules, equity terms, and provisions for defaults.

Repayment of NIDHI-SSS

• At least 30% of the soft loan amount should be repaid during the incubation period for support in the range of ₹20–25 lakhs.
• The entire loan amount should be repaid within five years.
• Seed support exceeding ₹25 lakhs shall be redeemed through equity shares.