Quick Guide to NIDHI PRAYAS (DST) Scheme

NIDHI PRAYAS is a DST/NSTEDB program that helps early-stage tech innovators turn ideas into working prototypes. It offers proof-of-concept grants (up to ₹10 lakh) for building a physical product prototype. Think of it as government seed money for hardware/deeptech ideas. Selected innovators get cash no strings attached (no equity, no repayment) and keep any IP they create. The program is run via approved PRAYAS Centres (incubators across India) which provide the funding, lab facilities, workspace and mentorship. Grants are given over up to 18 months, usually in stages tied to project milestones.

Who Is Eligible?

NIDHI PRAYAS is aimed at individuals or very early startups working on tech-based, science-driven products. Basic criteria include: Indian citizen, ≥18 years old, and own or have rights to the idea/IP. You can apply as an individual inventor or as a startup co-founder. If you apply as a startup, your company must be incorporated in India, have at least 51% Indian ownership, be less than 7 years old, and have modest revenue (no more than ₹25 lakh in any year). The project must be a new physical product prototype; software-only, service, e-commerce or app ideas are not eligible. In short, it’s for bootstrapped or early-stage tech entrepreneurs with a solid idea and a clear road to commercialization.

If you work in a team, you need to designate one lead innovator for the application. After selection, the grant will be paid to that lead’s account, and any IP or know-how generated stays with your team or startup. (If you’re a student or employed, you must get a No Objection Certificate from your institution approving the project.)

What Support Is Provided?

The core support is a grant up to ₹10 lakh for prototype development. This money is intended for R&D and prototyping costs – e.g. raw materials, parts, fabrication, testing services, specialized equipment usage, travel to test sites, and even patent fees (usually capped at ~10% of the budget). Importantly, you cannot use the money for salaries, personal expenses, rent, repaying loans, incubator fees or anything unrelated to the project.

Along with the cash, PRAYAS support includes access to lab infrastructure and mentors. Each PRAYAS Centre (incubator) typically has a “Prayas Shala” – a dedicated prototyping workshop with tools like electronics labs, 3D printers, metalworking machines, IoT/robotics kits and so on. You also get co-working space and guidance from technical/business mentors on site. Many centres run workshops or connect you with investor networks as part of the program. In short, you get funding plus a whole ecosystem (labs, mentors, events) to build your prototype.

Funds are disbursed through the incubator in tranches. Typically you’ll get an initial payment after joining, then further installments as you submit progress reports and invoices. You must report project progress and accounts (usually annually or at milestones) to unlock each installment. Once approved, you have up to 18 months to finish the prototype.

Key Benefits for Founders

• Free prototype funding (up to ₹10 lakh): This is non-dilutive capital – you don’t give away equity and don’t have to pay it back. It stretches your runway without diluting your ownership.
• State-of-the-art prototyping facilities: You get access to specialized labs (electronics, mechanical, robotics, biotech, etc.) at the PRAYAS incubator. This saves you from buying expensive equipment on day one.
• Mentorship and networking: Each centre provides mentors, technical experts and workshops. You may also get connected to potential investors and partners as the program highlights your project.
• Co-working space: You often get a desk or lab bench in the incubator’s co-work area to develop your idea with other startups.
• Focused support until prototype: The scheme is tailored to fast-track ideation to MVP. It’s an official validation that can boost credibility with future investors.
• Diverse opportunity: DST emphasizes areas like manufacturing, agriculture, healthcare, energy, water and IoT, but any strong tech innovation is welcome. If your idea solves a real problem with tech, PRAYAS can help you bridge to the next stage.

In essence, PRAYAS de-risks the hardest early steps: you get cash and support to prove your idea can work, without giving away ownership.

When It Makes Sense to Apply

NIDHI PRAYAS fits when you’re at the idea-to-prototype stage for a tech product. For example: you have identified a genuine problem and a science/technology-based solution, and you’re ready to build an MVP or working demo. You might be a student, researcher or small founding team with a hardware or deeptech concept. Use PRAYAS if you need funds specifically for prototyping, not for general business expenses.

Ideal scenarios include: a new medtech device needing test models, an IoT or robotics gadget that needs circuitry built, an agri-engineering tool to be field-tested, or any mechanical/electronic prototype. If you have customer validation but lack a budget for lab work, this grant can jumpstart your development.

Also, since DST prefers certain sectors, your idea helps if it’s in priority areas (for example manufacturing, healthcare, clean energy, agri-tech, etc.). However, even if not in those areas, any strong tech innovation with a clear path to market can qualify.

When It’s Not a Fit

Despite its broad goals, PRAYAS has strict limits. Don’t apply if:

• You’re mainly building software, a website, app or a generic service. PRAYAS explicitly excludes pure software or service solutions. It must be a tangible, physical product prototype.
• Your startup is already mature (>7 years old) or has high revenue. Companies beyond the early stage (over 7 years since incorporation) or with annual turnover above ₹25 lakh are not eligible.
• The idea is beyond proof-of-concept. If you’ve already developed a final product or are in large-scale production, you won’t qualify. PRAYAS is only for prototype-level projects.
• You’ve already funded this idea elsewhere. PRAYAS requires that the project has not received support from any other grant or agency.
• You need funds for anything other than prototyping costs. It’s not for rent, utilities, salaries, paying back debt, academic fees or general marketing. Funds must go into R&D/capex as per guidelines.
• You already did PRAYAS. Each innovator/startup can get at most one NIDHI-PRAYAS grant (and not simultaneously with NIDHI-EIR).

In short, PRAYAS is not a lifeboat for general business or a typical startup loan. It’s tightly focused on getting a new tech idea off the lab bench and into a working prototype.

How to Apply (Typical Process)

1. Find a PRAYAS Centre: There are ~10+ approved incubators (“PRAYAS Centres”) across India. These are usually technology incubators at science/engineering institutions. (Example centres include C-CAMP Bengaluru, IIIT incubators, etc.) See the official list on the NIDHI-PRAYAS portal.
2. Watch for Calls: Each PRAYAS Centre will announce a call for proposals on its website (typically once a year or so). Keep an eye on the incubators’ websites or subscribe to their newsletters.
3. Prepare Your Application: Gather details about your team and idea. You’ll typically fill an online form or upload a short proposal. Be ready to explain your concept, prototype plan, budget (up to ₹10L) and timeline. Mention the tech background of your team and that you (or your startup) hold the IP. If you’re employed/studying, get a No Objection Certificate from your organization.
4. Submit by Deadline: Submit through the incubator’s portal or email by the stated deadline. Some incubators have a standardized application template; others may ask for a pitch deck. Include all required documents (ID proof, startup info, etc.).
5. Evaluation and Interview: The PRAYAS centre will review applications. Shortlisted teams are usually invited for an interview or demo pitch. The local NIDHI-PRAYAS committee (experts + incubator staff) decides who gets funded.
6. Grant Disbursement: If approved, you’ll sign a grant agreement. An initial installment of the ₹10L (or less) will be released. The incubator disburses funds to your account as per its rules.
7. Build and Report: Work on your prototype! Maintain communication with the incubator. You’ll submit progress reports (often annually) and account statements to claim further installments. Complete the project within 18 months. If you finish early, you should return any unspent funds.
8. After Prototype: Once the prototype is ready, the PRAYAS support ends. The goal is that you have a demo or pilot you can use to attract pilots, investors or next-stage funding (like NIDHI Seed Fund, VC, etc.).

Tip: Treat the application process like a mini pitch. Clearly highlight the problem, your solution, and how ₹10L and the incubator’s support will specifically get you to a demo.

Common Mistakes to Avoid

• Applying with the wrong idea: Double-check that your project is eligible. For example, don’t waste effort on PRAYAS if your startup is just a software app or a service – only physical tech prototypes are allowed.
• Misusing the funds: Grant money is strictly for project costs. Founders sometimes mistakenly spend it on rent or salaries – don’t do this. Also, you can’t pay any fees or dues to the incubator out of the grant.
• Ignoring eligibility rules: Make sure your startup isn’t older than 7 years or too large (₹25L turnover). If you’ve already received PRAYAS or NIDHI-EIR funding for the same idea, you can’t get another.
• Skipping paperwork or reports: After the first installment, you must submit progress reports and expense details on time to get the next tranche. Missing a deadline can stall your funding.
• Not protecting IP: If you already have a startup, remember to assign the new IP to the company as required. If you’re a student/employee, get the organization’s written consent before applying.
• Leaving deadlines till the last minute: PRAYAS calls have fixed deadlines. Don’t wait until the final hour to submit; systems can crash or forms might malfunction.
• Treating funding as guaranteed: PRAYAS is competitive. Only some applicants get grants. Make sure your prototype plan is solid and realistic.

Being thorough with the guidelines and organized in your approach will go a long way. Read the official rules carefully so you don’t trip over a technicality.

Official Resources

• DST/NIDHI Guidelines: The detailed program guidelines and proposal format are on the official DST website. This is the definitive rulebook for PRAYAS.
• NIDHI-PRAYAS Portal: The scheme is managed by SINE IIT Bombay. Visit the official portal for updates:
• List of PRAYAS Centres: On the portal, check “PRAYAS Centres” for the current incubator list and their contact info. Each centre runs its own calls.
• Application Portals: When a call is open, the designated PRAYAS centre (incubator) will provide an online form or link. Check those incubator websites regularly.

For verification, you can also find “NIDHI-PRAYAS” on the DST site under Schemes/Programmes and in recent compendiums of supported startups. Always use the official links above to avoid scams or misinformation.

FAQs

Q1: Who exactly can apply for NIDHI PRAYAS?
A: Basically, you or your small startup can apply. You need to be an Indian citizen (over 18) working on a new tech product idea. It can be as just an inventor (or a team leader) without a registered company yet, or as a co-founder of an early-stage Indian startup (under 7 years old, mostly Indian-owned, low turnover). Students or employees must get permission from their institutions. If you meet those criteria and have a prototype plan, you can apply.

Q2: How much funding is available and do I have to pay it back?
A: You can get up to ₹10 lakh for your project. This is a grant, not a loan or investment – you do not repay it and you don’t give up equity. You’ll get it in stages, tied to your progress. You are expected to spend it on building the prototype and related R&D costs.

Q3: Can the grant cover salaries or office rent?
A: No. PRAYAS funds are only for prototyping expenses (materials, testing, outsourcing development, travel for experiments, patent filings, etc.). Rules explicitly forbid using the grant for founder salaries, living expenses, rent or debt repayment. Make sure you budget within the allowed categories.

Q4: I have a software/web app idea. Can I apply?
A: No. PRAYAS is for physical products or hardware prototypes. Pure software, mobile apps, e-commerce or service ideas are not eligible. If your innovation has a hardware component or the core is in R&D of a tangible product, you can apply.

Q5: How do I apply, and when?
A: Applications go through PRAYAS Centres (incubators). First, find a PRAYAS incubator near you (see the list on the official site). Then watch that incubator’s announcements for “call for proposals.” When a call is open, fill in their online form or upload your proposal by the deadline. After submission, incubator staff will evaluate and schedule interviews. If approved, you’ll be notified by email and asked to do paperwork to get the grant.

Q6: What happens if I can’t finish the project in 18 months?
A: PRAYAS grants come with an 18-month project timeline. You should aim to complete the prototype by then. If you don’t finish or don’t use all the money, any unspent funds must be returned. It’s best to set realistic goals so you can fully utilize the grant within the period.

Q7: Can I apply for PRAYAS again or at multiple centres?
A: No. Each person or startup can get only one PRAYAS grant for a given idea. You can’t apply to multiple PRAYAS Centres with the same project, and you can’t take PRAYAS and NIDHI-EIR support simultaneously. Choose the one best-fitting centre and focus on that application.

Q8: Where can I find official information or get help?
A: Check the official NIDHI-PRAYAS website (managed by SINE, IIT Bombay) and the DST/NIDHI scheme page. The programme guidelines PDF is available through DST. You can also email the coordinators at the incubators (their contacts are on the portal). Always rely on these official sources for the latest rules and deadlines.

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