Sarkari Yojana

Incubation Scheme

Quick Summary: The MSME Incubation Scheme funds Host Institutes acting as Business Incubators, providing up to ₹15 lakh per idea for nurturing MSME innovations and up to ₹1 crore for plant, machinery, and equipment supporting R&D and shared incubation facilities. Eligible institutions include technical colleges, universities, R&D bodies, and Government organizations.

About Incubation Scheme

The Ministry of Micro, Small & Medium Enterprises runs the “Incubation Scheme,” under the MSME Innovative Scheme, to nurture untapped creativity and encourage MSMEs to adopt the latest technologies while validating their ideas at the proof-of-concept stage. It also connects such MSMEs with enablers who advise them on business expansion through design, strategy, and execution support. Activities:

  • Recognizing eligible institutions as Host Institutes (HI) that function as Business Incubators (BI).
  • Approving Incubatee ideas submitted through the Host Institute (HI).
  • Supporting HIs in nurturing these ideas.
  • Providing HIs capital support for plant and machinery.

Scheme Overview

Government Level

Central Government

Ministry

Ministry Of Micro, Small and Medium Enterprises

Eligible Entity

University / Institution

Scheme Details

Eligibility

Eligibility Requirements

To qualify for Incubation Scheme, applicants must satisfy the following conditions:

🎓

Institutions such as Technical Colleges, Universities, other…

Institutions such as Technical Colleges, Universities, other Professional Colleges/Institutes, R&D Institutes, NGOs engaged in incubation work, MSME-DIs/Technology Centres, or any Central/State Government Institute/Organization.

Applicants must meet all of the above conditions to be considered eligible for this scheme.
Benefits

Benefits Provided

Incubation Scheme provides the following benefits to eligible applicants:

💰

Up to ₹15,00,000/- per idea is provided to…

Up to ₹15,00,000/- per idea is provided to the HI for developing and nurturing it.

💰

Up to ₹1,00,00,000/- (maximum) is provided to the…

Up to ₹1,00,00,000/- (maximum) is provided to the HI for procuring and installing relevant plant and machinery — including hardware and software — for R&D activities and shared facilities for the BI's incubatees.

Benefit amounts and conditions may vary by category — refer to the official scheme guidelines for exact figures applicable to your case.
Documents Required

Documents Required

Applicants should keep the following documents ready before starting the application:

🎓

University affiliation

University affiliation.

✅

All India Council for Technical Education (AICTE) approval

All India Council for Technical Education (AICTE) approval.

✅

National Accreditation Board for Testing and Calibration Laboratories…

National Accreditation Board for Testing and Calibration Laboratories (NABL) or other accreditation.

✅

Audited annual accounts, with auditor's report, for the…

Audited annual accounts, with auditor's report, for the last two years.

✅

Any other documents required

Any other documents required.

Ensure all documents are valid and, where required, duly attested before submitting your application.

How to Apply

Online Application

Applicants can apply for Incubation Scheme through the online application process outlined below.

Registration:

1️⃣

On the official website, click HI REGISTRATION

On the official website, click HI REGISTRATION.

2️⃣

Enter all details and click Submit

Enter all details and click Submit.

3️⃣

A registration-success message appears after clicking Submit; click…

A registration-success message appears after clicking Submit; click OK to reach the login window. HI/BI Application for Approval:

1️⃣

After logging in, the HI/BI dashboard opens; click…

After logging in, the HI/BI dashboard opens; click Apply for HI/BI Approval, after which an Apply button appears.

2️⃣

Clicking Apply opens the HI/BI application window —…

Clicking Apply opens the HI/BI application window — fill in all details and click Final Submit. User Manual: Click here.

Ensure all required documents are ready before starting the application process.

Official Application & Website

Verify the latest eligibility, dates and instructions before applying.

Official Sources & References