why you need nidhi prayas yojana scheme 2022

Why you Need Nidhi Prayas Yojana Scheme 2022?

What is Nidhi Prayas Yojana?

Nidhi Prayas yojana is a combination of a scheme lead and a scheme. Where, Nidhi has many schemes under its umbrella and PRAYAS is just an abbreviation for PR- promoting and A- accelerating Y- young and AS- aspiring technology entrepreneurs. The main goal of Nidhi Prayas is to help young and aspiring entrepreneurs to turn their start-up ideas into reality through prototype funding. Innovators should be using this Prayas scheme grant to create a prototype of their idea that can be commercialised.

The start-up or the innovator should possess ownership of IT if generated. Even though the monitoring committee of Prayas before the centre can only approve the final amount for start-up funding the maximum financing support an innovator or start-up can get is Rs. 10 lacs only.

What are the eligibility criteria for Nidhi Prayas?

What are the eligibility criteria for Nidhi Prayas Yojana

An innovator who doesn’t have a start-up or start-up founder can apply for this Nidhi Prayas grant.

In case the person applying is an Individual innovator without a start-up and wants to apply:

  • The individual who is applying for the Prayas scheme must be an Indian citizen who possesses a valid passport, voter id card, etc. which is Indian government-approved nationality proof.
  •  As of the date of application the age of the applicant should be a minimum of 18 years old.
  • If the applicant has worked in a team then the whole group of innovators should agree to one lead innovator and further the funds will be transferred to the account of the lead innovator post-selection. As per the agreement, the IP that will be generated will be in the name of an innovator or the team and then taken ahead for commercialization.

In case the applicants are co-founders of a start-up who are applying:

  • The individual who is applying for the Prayas scheme must be an Indian citizen who possesses a valid passport, voter id card, etc. which is Indian government-approved nationality proof.
  • As of the date of application the age of the applicant should be a minimum of 18 years old.
  • The start-up must be started in India with 51% of its equity held by Indian citizens further add the start-up should not be more than 7 years old.
  • The start-up is willing to develop a prototype for the new product and for that they have not received funding from other financing agencies.
  • Since its inception, the start-up should have not exceeded the turnover of Rs. 25 lacs.

       The generated IP will remain with the start-up.

 

      Extra time for working innovators OR students at any R&D organisation OR academic institution. NOC from their organisation or institution is required for workplace innovators or students. The NOC should include authorization to apply for PRAYAS as well as time to work on the PRAYAS project. The innovator would own the resulting intellectual property. 

 

Regardless of the aforementioned, the following will be excluded from Nidhi-Prayas consideration. Projects include pure software development, e-commerce, service solutions, and app-based solutions. Student internships or research grants in academic institutions or R&D organisations.

Guidelines to use the funds:

  • Outsourcing Fees for R&D/Design Engineering/Consultation/Testing/Expert Cost.
  • Raw materials, consumables, and spares.
  • Charges for a working model or process fabrication or synthesis.
  • Fees for business travel and event participation (up to 10% of approved project cost)
  • Patent filing fees (PCT- 10% of approved project cost)
  • Contingency – (A maximum of 10% of the authorised project cost)

The fund cannot be used to:

  •  Pay compensation to the recipient or their relatives.
  •  Pay back prior debts or promises made by the entrepreneur.
  • The Prayas funding will be used to cover the Incubator’s use costs. If such charges emerge, the recipient may pay them with additional funds.
  • Paying own house rent or renovating it.
  •    As a temporary strategy to supplement other professional endeavours.

Terms and conditions of the Nidhi Prayas scheme:

  • Grant up to Rs. 10 lacs will be provided by the Nidhi-Prayas scheme. Committee member of PC where the Prayas application is applied by the inventor that will be considered. The inventor will determine whether to accept, reject, or change it.
  •  The applicant will be completely dedicated to working on the prototype development for which funding is being sought, with the goal of commercialization. 
  • The project will last 18 months. The prototype must be completed within 18 months after receiving the grant’s first phase.
  •  If the project is incomplete the innovator will have to submit the incomplete project fund.
  •  If the innovator has begun a firm then he should have IP ownership rights to start-ups.
  •   Innovators or start-up teams must lock in mind that they can avail of the scheme only once and not more than once centre as well. Innovators are not allowed to avail of Nidhi-EIR and Nidhi-Prayas at the same time. If the innovator has received support from Nidhi-EIR then they must note it should not be for the same idea. 

How to Avail The Benefits of Nidhi Prayas Yojana?

We know that Nidhi Prayas is helping and motivating the Prayasee (innovator or start-up) with the best of its scheme, a good amount of funding and majorly focusing on young entrepreneurs, women entrepreneurs and those who are starting up for technologies. Egniol will help you the most with business and start-up consultancy, guide in application in a hassle-free manner. Our team of experts will give you the help and artwork you need for starting your venture and assist you with availing of the government benefits you deserve.

Add a Comment

You must be logged in to post a comment