NIDHI Programme (National Initiative for Developing and Harnessing Innovations)

The National Initiative for Developing and Harnessing Innovations (NIDHI) is the Department of Science and Technology's umbrella programme to convert academic and student innovations into real, investible, technology businesses. It was launched in 2016 and has since grown to host more than 170 incubators across the country, with cumulative funding to thousands of startups.

NIDHI is not a single scheme but a stack: PRAYAS (prototype grants for student innovators), Technology Business Incubators (TBIs to host startups), Centres of Excellence (CoEs for deep-tech sectors), Seed Support System (equity-free seed funding), Accelerator (cohort-based scale-up programmes), and Entrepreneur-in-Residence (NIDHI-EIR). Each component is operated by a host institution (typically an IIT, NIT, IIM, IISER or a state university) accredited by DST.

The objective is to lower the cost and risk of starting a deep-tech company in India, especially for first-generation entrepreneurs from academic backgrounds who do not have family capital or angel networks. NIDHI fills the gap between a research idea and the point where private venture capital becomes interested.

PRAYAS (Promoting and Accelerating Young and Aspiring innovators and Startups) is the entry point for individual innovators who have a technology idea but no working prototype. PRAYAS gives up to Rs. 10 lakh as a direct grant to the innovator for prototype development, plus up to Rs. 8 lakh in overhead costs reimbursed to the host PRAYAS Centre for mentorship and lab access.

Any Indian citizen aged 18-40 is eligible. The innovator does not need to have incorporated a company. The application is made to one of the PRAYAS Centres (currently at IITs Madras, Bombay, Kanpur, Roorkee and a few other institutions). A Selection Committee evaluates the idea, the team, and the feasibility within four to six weeks.

PRAYAS funds are released in two tranches against milestones (proof-of-concept and working prototype). Funds can be used for materials, fabrication, software licences, testing fees and modest consultant fees. They cannot be used for personal salary, foreign travel or office rent.

Once you have a prototype, the next step is incorporation as a private limited company under the Companies Act and admission to a Technology Business Incubator (TBI). NIDHI-supported TBIs are hosted at academic institutions and offer office or lab space, mentorship, legal and IP support, and access to the host institution's faculty and equipment for a typical residency of 12-36 months.

Application is to each TBI directly. Each TBI runs cohorts (usually two or three a year) and evaluates startups on technology novelty, founding team, market opportunity and fit with the TBI's sectoral focus. You do not need to be a student or alumnus of the host institution to apply, although some TBIs reserve a quota for their alumni.

TBI residency is largely free or heavily subsidised. Some TBIs take a small equity stake (typically 2-7 percent) in exchange for deep institutional support; many do not. Always read the residency agreement carefully and consult a lawyer before signing equity terms.

Once your startup is incorporated and inside a TBI, you can apply for Seed Support of up to Rs. 25 lakh per startup. This is given as an equity-free grant or a convertible note (which converts to equity only if the startup raises a priced Series A within an agreed window). The decision is made by the Investment Committee of the host TBI, not by DST.

Seed Support funds can be used for product development, validation trials, regulatory approvals, hiring critical talent and limited marketing. They cannot be used to pay founder salaries above a modest cap, or for activities unrelated to the technology product or service.

If you are still in the idea stage and considering leaving a salaried job to start up, NIDHI-EIR (Entrepreneur-in-Residence) gives a monthly fellowship of Rs. 30,000 for up to 12 months while you incubate inside a host TBI. This is meant as a bridge so you do not have to choose between rent and risk.

There is no single national portal. The NSTEDB website (nstedb.com) lists every host PRAYAS Centre, TBI and CoE with contact details. Identify the host institution closest to you (geographically or sectorally) and apply to it directly. Most hosts have an online application form on their own website.

Avoid agents and consultants promising guaranteed NIDHI selection for a fee. Selection is by an independent committee at the host institution, and DST has zero direct application route. The only legitimate cost is the modest residency or application fee charged by the TBI, which is publicly disclosed.

If your application is rejected, ask for written feedback and apply to a different host whose sectoral focus matches yours better. Many successful NIDHI startups were rejected by two or three TBIs before finding the right fit. Keep iterating on your prototype and team while you wait.

• 01Indian citizen aged 18-40 for PRAYAS; no age cap for TBI admission, Seed Support and EIR
• 02For PRAYAS: technology idea with a clear novelty claim; no prior company incorporation required
• 03For TBI: incorporated private limited company (LLP also accepted by some TBIs) less than 5 years old
• 04For Seed Support: incorporated startup currently inside a NIDHI-supported TBI
• 05For NIDHI-EIR: aspiring entrepreneur willing to relocate to and work full-time inside the host TBI

• §Detailed project proposal with novelty claim, prototype roadmap and budget
• §Resume of founder(s) and proof of educational and work background
• §Aadhaar and PAN of all founders
• §Certificate of Incorporation, MoA and AoA (for TBI and Seed Support stages)
• §DPIIT recognition certificate (encouraged but not mandatory)
• §IP disclosure or patent filings (if any)
• §Bank account details and cancelled cheque of the company (or innovator for PRAYAS)

• Idea is not deep-tech or has no clear novelty over existing solutions in the market
• Founder team has no demonstrable technical capability to build the prototype themselves
• Budget items include personal salaries, foreign travel or activities outside the host TBI mandate
• Same idea has previously received funding from another DST scheme without disclosure
• TBI sectoral focus does not match the startup (apply to a sector-matched host instead)

• NIDHI Scheme Guidelines 2024, National Science & Technology Entrepreneurship Development Board, DSTlink ↗
• List of Host PRAYAS Centres, TBIs and CoEs, Department of Science & Technologylink ↗
• Annual Report 2024-25, Department of Science & Technology, Government of Indialink ↗