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NIDHI–PRAYAS: Complete Guide to India’s ₹10 Lakh Prototype Development Grant

Launched in 2016 by the Department of Science & Technology (DST), NIDHI–PRAYAS (Promoting and Accelerating Young and Aspiring Innovators & Startups) is a flagship pre‑incubation initiative under the broader NIDHI program. 


It is designed to bridge the crucial funding gap during the early stage of product innovation by offering grant support—up to ₹10 lakhs—to help innovators transform their ideas into physical prototypes.

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Administered through DST‑recognized PRAYAS Centres hosted at leading academic and incubation institutions, the scheme provides comprehensive support including prototype funding, access to fab labs and infrastructure, technical mentorship, and business facilitation. By enabling experimentation at minimal risk, NIDHI‑PRAYAS empowers early‑stage innovators who may lack collateral, revenue, or an operational MVP.


Across diverse domains such as healthcare, clean technology, agriculture, robotics, IoT, and electronics, hundreds of innovators have advanced from concept to proof-of-concept through this scheme. The program also promotes innovation infrastructure—including PRAYAS Shalas—in Tier II and Tier III cities, democratizing access to prototyping facilities nationwide.


As of early 2025, NIDHI‑PRAYAS has supported approximately 1,900 PRAYASEEs, resulting in the development of 1,268 prototypes, With each grant capped at ₹10 lakhs, the total prototype funding disbursed is estimated around ₹190 crores—not including additional capital spent on setting up and operating PRAYAS Centres (which typically receive up to ₹220 lakhs each)



How Much Funding Can You Get Under NIDHI–PRAYAS?


Under the NIDHI–PRAYAS scheme, eligible innovators can receive a grant of up to ₹10 lakh to build a prototype of their technology-based idea. This is not a loan or equity investment—it’s a non-repayable grant, meaning you don’t have to return the money or give up ownership in your startup.


The grant is intended to help you move from idea to working prototype—a key step before market launch, startup formation, or pitching to investors.


What Can the Funding Be Used For?


You can use the grant for anything directly related to building your prototype, such as:

  • Buying raw materials and electronic/mechanical components

  • Accessing 3D printing, CAD design tools, or fab lab machinery

  • Paying for design, modeling, testing, or validation

  • Hiring expert consultants (for development help, not business advice)

This grant ensures that technical innovation gets the resources it needs—without wasting funds on unrelated expenses.



What’s Not Covered?


NIDHI–PRAYAS funding cannot be used for:

  • Salaries or stipends

  • Business registration or IP (patent/trademark) filings

  • Marketing, advertising, or branding

  • Office space or manufacturing setup

  • Legal, accounting, or admin expenses

The focus is strictly on building and validating the product.

 


How Is the Grant Disbursed?


You don’t receive the entire ₹10 lakh up front. Instead, the amount is released in three stages, linked to your progress:

Installment
When You Get It
Approx. %

First Installment

After approval and signing of agreement

~40%

Second Installment

Once you’ve used 80% of the first and met initial milestones

~40%

Final Installment

After near-completion of the prototype and final review

~20%


Beneficiaries & Impact Highlights from NIDHI–PRAYAS

Metric
Value

Innovators supported

~2,214 (up to early 2025)

Prototypes built

~1,495

Patents filed

~960

Follow-on funding raised

₹817.16 crore

Revenue generated

₹363.32 crore

Employment created

9,286 jobs

 

 

Startups Funded by NIDHI–PRAYAS (Across Multiple Centres)

Startup Name
Founder(s)
Innovation / Focus Area

Abyom Space Tech & Defence Pvt Ltd

Jainul Abedin

Portable micro-level rocket engine testing system (Aerospace)

PaperPro (M‑Lense Research Pvt Ltd)

Dhruv Tomar & Rajat Jain

Milk adulteration testing card (Healthcare)

Aumsat Technologies LLP

Riddhish Soni & Chetan Soni

Groundwater detection & pipeline leak analytics via satellite-derived radar (Deeptech)

Techno Orchard LLP

Rafia Mushtaq

AI-based robotic pruner for apple orchards (Agritech)

Green Innovotech Solutions Pvt Ltd

Harjeet Singh

Solar thermal waste pyrolysis system (CleanTech)

Khaliyav Robotics Pvt Ltd

Vikrant Yadav

Intelligent construction machinery for building automation (Construction Tech)

Cellsinvitro Lifesciences Pvt Ltd

Satyam Aggarwal

Saliva-based point-of-care testing (POCT) for cancer detection (Healthtech)

Mednovate Pvt Ltd

Arita Abrol

Respiratory NIV mask for enteral nutrition in critical care (Healthtech)

Nettoyer Automotives Pvt Ltd

Ravindra & Gopal Ramswaroop Joshi

Rare-earth-free traction motors (Automotive Tech)

Others (e.g., Dagriation, Khaliyav, Mednovate, etc.)

Various

Multi-domain innovations (Deeptech, Agritech, CleanTech, Healthtech)


List of NIDHI–PRAYAS Centres by State


State
City & Incubator / Centre

Andhra Pradesh

SPMVV TBI (SSIIE), Tirupati

Goa

FIIRE (Don Bosco), Goa

Gujarat

Ahmedabad University Venture Studio, Ahmedabad


iCreate, Ahmedabad


Savli Technology & Business Incubator, Vadodara


IIT Gandhinagar Innovation & Entrepreneurship Centre


PDEU Innovation & Incubation Centre, Gandhinagar

Karnataka

Jyothy Institute of Technology TBI, Bengaluru


C‑CAMP (Centre for Cellular & Molecular Platforms), Bengaluru


Derbi Foundation, Bengaluru


IKP Eden Incubator, Bengaluru


SIO – IISc (Society for Innovation & Development), Bengaluru


Sandboxstart Hub (DFMail), Hubli


Manipal Universal TBI (MUTBI Society), Manipal


SJCE‑STEP Incubator, Mysuru

Kerala

NIT Calicut Technology Business Incubator, Calicut


Technopark TBI (Kerala Startup Mission), Thiruvananthapuram

Maharashtra

SINE, IIT Bombay, Mumbai


Venture Center (Entrepreneurship Development Center), Pune


COEP’s Bhau Institute, Pune


SPTBI (Sardar Patel TBI), Mumbai


RiiDL (Research Incubation Design Labs), Mumbai

Punjab / Chandigarh

Chitkara Innovation Incubator Foundation (CIIF), Punjab / Chandigarh

Tamil Nadu

DETI@ACE PRAYAS Centre, Hosur


Agri Business Incubation Society Technology Business Incubator (ABIS‑TBI), TNAU, Coimbatore


Foundation for Innovation & Research in Science & Technology (FIRST), location across Tamil Nadu


Amrita TBI, Coimbatore


Centre of Cellular & Molecular Biology (CCMB – Atal Incubation Centre), Hyderabad


IIITD Innovation & Incubation Center, Delhi (serving innovators from diverse states)


KIIT TBI (KIIT University), Bhubaneswar, Odisha

West Bengal

TIDES (IIT Roorkee) TBI, Uttarakhand/West Bengal

Others

Technology Incubation & Entrepreneurship Development Society (TIDES), IIT Roorkee


 Eligibility Criteria 

Category
Requirement

Nationality

Must be an Indian citizen

Age

Minimum 18 years old

Applicant Type

- Individual innovator (not necessarily incorporated) - Startup (≤ 7 years old, with DIPP/DPIIT recognition)

Startup Ownership

For startups: ≥ 51% Indian ownership

Revenue Status

Startup must not have annual turnover > ₹25 lakh at time of application

Funding History

Idea/startup must not have received similar government grants previously

Project Scope

Must aim to develop a physical prototype of a tech/science-based idea

Project Stage

Should be pre-commercialization (i.e., not already market-ready)

Timeline

Prototype should be completed within 18 months of funding

Technology Domain

Focus on deep-tech: manufacturing, clean-tech, healthcare, IoT, agri-tech, etc.

Employment Status

Employed/students must submit a No Objection Certificate (NOC)

IP Ownership

All IP developed must remain with the innovator or startup

Not Eligible

- Service-only businesses - Pure software apps or platforms - Fully commercialized products - Academic research with no business intent

When to Apply for NIDHI–PRAYAS?


Application Calls Are Periodic

Calls for applications are announced by DST-recognized PRAYAS Centres on:


1–2 Calls per Centre per Year

Most PRAYAS Centres release one or two calls annually, depending on their funding cycle and cohort capacity.


Application Window

Each call is typically open for 30–45 days. Submitting early is advised to allow for clarification or updates.


Step-by-Step Application Process


The application process usually takes 4–5 months from submission to first fund disbursement.

Step
Action
Details
Approx. Duration

1

Check for Open Calls

Visit nidhi-prayas.org or the specific PRAYAS Centre website.

During the 30–45 day application window

2

Select a PRAYAS Centre

Choose a centre based on proximity, domain fit, or infrastructure.

Immediate

3

Register Online (if portal-based)

Some centres use platforms like F6S; others have internal application forms.

1–2 days

4

Prepare Proposal & Documents

Submit your proposal, tech brief, budget plan, and supporting documents.

7–10 days (ideally)

5

Submit Application

Submit the full application before the closing date.

Before deadline

6

Screening & Shortlisting

Centre evaluates eligibility, innovation value, and documentation.

2–4 weeks after closing

7

Pitch Presentation / Interview

Shortlisted applicants pitch before a Selection Committee (online/offline).

1–2 weeks after shortlisting

8

Final Selection & Offer Letter

Selected applicants are informed and sent a formal confirmation/offer letter.

1–2 weeks post-pitch

9

Agreement & Onboarding

Sign grant agreement and complete fund setup formalities.

Within 2 weeks of selection

10

First Tranche Disbursement

Based on milestone plan submission and approval.

3–4 weeks after onboarding


Evaluation Criteria (Indicative Weightage)

Criteria
Weightage

Problem-Solution Fit

25%

Prototype Feasibility

20%

Technical & Business Clarity

20%

Budget & Milestone Plan

15%

Presentation & Team Strength

15%

Commitment & Execution Readiness

5%


Documents Required for Application

Document
Purpose

Identity Proof (Aadhaar/PAN)

For individual applicant or startup founder verification

Company Registration Certificate

Mandatory if applying as a startup

DPIIT Startup India Certificate

Optional, adds credibility

Budget/Utilization Plan

How the grant (₹10L max) will be spent across milestones

Project Proposal / Technical Note

Describes the innovation, technology base, and prototype development plan

Pitch Deck

Optional but recommended (concise problem-solution-market overview)

Proof of Concept (if available)

Prior models, sketches, diagrams, or evidence of initial experimentation

No Objection Certificate (NOC)

Required if applicant is employed or studying

Bank Details (Post-Selection)

For setting up fund disbursement

Passport Photo

Required for onboarding documentation

 

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