Instructions for utilization of funds for idea

development for Incubation component under MSME

Innovative Scheme.

i) Under any circumstances funds shall not be transferred to any

approved Incubatee account.
ii) The fund shall not be utilized for purchasing of Equipments/Machine/
Capital assets, etc.
iii) Funds shall be utilized only for Technology related expenditure like
machine usage charges, electricity charges, procurement of raw
materials, testing/calibration charges and any other technology related
expenditure essential for development of idea and \or any other
overhead/administrative expenditure.
iv) Incubatee shall submit requisition to HI and HI shall purchase raw
material and other services usage charge to vendor and provide them to
the incubatee for idea development.
v) HI shall provide a space at its Business incubator for incubatee to
support/work on the Idea, and the incubatee shall develop the idea at
the HI premises only.
vi) HI shall appoint a qualified mentor(s) for handholding the Idea,
preferably from the HI. Mentor charges will be paid to the mentor(s)
through bank account only.
vii) HI shall make close liaison and efforts with incubatee to develop the
Idea from the initial stage of conceptualization to the commercialization
stage.
viii) Under Travelling Expenses Head, traveling allowance will be made
only for essential work like testing, calibration, machining etc., by HI as
per GFR rules for the incubatee and for Mentor only.
ix) It shall not necessary to spend the entre GoI grant and austerity
measures shall be undertaken to develop the idea/prototype at the
minimum expenditure possible.
x) Quarterly report shall be submitted by the HI to O/o DC MSME without
fail.
xi) Officials from IA and O/o DC MSME shall visit the HI periodically, to
verify the progress of idea development.
xii) Best prototypes shall be given an opportunity to showcase
themselves at important events organized by GoI, New Delhi and other
suitable places, across India.
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