Incubation Scheme
The MSME Incubation Scheme funds recognized institutions — colleges, universities, R&D centers, and NGOs — to run business incubators that help early-stage MSME ideas get validated at the proof-of-concept level. Approved Host Institutes (HIs) can receive up to ₹1 crore for equipment plus ₹15 lakh per incubated idea for nurturing and development. Apply through the MSME innovation portal at my.msme.gov.in/inc/.
About This Scheme
The MSME Incubation Scheme funds recognized institutions — colleges, universities, R&D centers, and NGOs — to run business incubators that help early-stage MSME ideas get validated at the proof-of-concept level. Approved Host Institutes (HIs) can receive up to ₹1 crore for equipment plus ₹15 lakh per incubated idea for nurturing and development. Apply through the MSME innovation portal at my.msme.gov.in/inc/.
Full official description
Launched by the Ministry of Micro, Small & Medium Enterprises , Incubation Scheme Under MSME Innovative Scheme aims to promote and support untapped creativity and to promote adoption of latest technologies in MSMEs that seek the validation of their ideas at the proof-of-concept level. The scheme also supports engagement with enablers who will advise such MSMEs in expanding the business by supporting them in design, strategy and execution.
Activities:
- Recognition of eligible institutions as Host Institute (HI) to act as Business Incubator (BI);
- Approval of Ideas of Incubatees submitted through Host Institute (HI);
- Assistance for nurturing of Ideas to HI;
- Assistance towards Capital Support to HI for Plant and Machiner.
Benefits
- Up to ₹15,00,000 per incubated idea for development and nurturing support
- Up to ₹1,00,00,000 (₹1 crore) for procuring plant, machinery, hardware, and software for R&D and shared facilities
- Funding released in milestone-based installments (three or more stages)
Who Can Apply (Eligibility)
- Scheme is open to institutions acting as Host Incubators (HI/BI) — not individual businesses or startups
- Eligible institutions: technical colleges, universities, professional institutes, R&D institutes, NGOs involved in incubation, MSME Development Institutes (MSME-DIs), Technology Centres, or Central/State Government institutions
How to Apply
Registration:
Step 01: After opening the official website click on REGISTRATION button.
Step 02: Enter all the details and clicking on Submit button.
Step 03: After clicking the submit button, registration successfully message will be displayed. Clicking on OK button, login window will be displayed.
HI/BI Application for Approval:
Step 01: After successful login, the HI/BI dashboard will be open. HI/BI application will be open by clicking on Apply for HI/BI Approval button. After clicking on button Apply button will be displayed.
Step 02: After click on Apply button, HI/BI application window will be display, fill all the detail and click on Final Submit button.
Frequently Asked Questions
What is the objective of Incubation Scheme?
The main objective of this Schemeis to promote and support untapped creativity and to promote adoption of latest technologies in MSMEs that seek the validation of their ideas at the proof-of-concept level.
Who are eligible?
Any person as individual or MSME, having the innovative ideas are eligible to avail the benefits of this scheme. The person should have innovative sort of idea which can be converted into prototype and further in business activity. The person is being called Incubatee.
Is there any qualification to become Incubatee?
There is no qualification bar to become incubatee. However, MSME should have valid Udyam Registration (UM) and individual should have Aadhar card number.
How to take benefit of scheme?
The person (incubatee) should get attached with any Host Institute (HI) for nurturing of their idea in Business incubator (BI) being set up by HI.
What is “Host Institute & Business Incubator”?
Host Institute (HI) : Institute which set up Business Incubator and provides the infrastructural and technical facilities for nurturing of new innovative ideas is called Host Institutes (HI). Business Incubator (BI): A specific place/workshop located in HI having facilities for nurturing of idea of Incubatee is called Business Incubator.
Who can become Host Institute(HI)?
Institutions such as Technical Colleges, Universities, other Professional Colleges/Institutes, R&D Institutes, NGOs involved in incubation activities, MSME-DIs/ Technology Centres or any Institute/Organization of Central/State Government may apply for HI and set up a Business Incubator (BI).
What is the role of Host Institutes?
Host Institutes will set up Business Incubator (BI) and provides the space, equipments, lab and all the auxiliary support to the incubatee for nurture of his ideas for the business activities.
How to become HI?
Incubatees and eligible institutes of all states/UTs can take benefit of the scheme. However, Institutes in the North East Region will be given priority for supporting BIs.
How the financial assistance can be taken under the scheme?
The person (incubatee) should get attached with any Host Institute (HI) for nurturing of their idea in Business incubator (BI) being set up by HI.
Can funds be given to Incubatee directly?
Financial support for all activities will be given to HI only and no funds can be transferred to incubatee's account.
Which type of assistance /support incubate can get from BI?
Incubatee can get support from BI on all issues related to technology,innovation,mentor, plant & machinery required for nurturing of idea.
Can incubaee take any technical support outside the BI?
If any facilities of plant & machinery which are essential for nurturing of idea and same are not available in HI/BI , then incubate can utilize the facilities of machines available in other places . Incubatee can utilize these facilities on pay as usage basis through HI/BI only.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- University Affliation;
- All India Council for Technical Education (AICTE) Approval;
- National Accreditation Board for Testing and Calibration Laboratories (NABL) or Other Accreditation;
- Last two years audited annual accounts with auditor’s report;
- Any other documents as required.