«MAY 2016 GUIDELINES AND PROFORMA FOR SUBMISSION OF PROPOSALS Government of India Ministry of Science & Technology Department of Science & Technology ...»
NEW GENERATION INNOVATION AND
ENTREPRENEUSHIP DEVELOPMENT CENTRE
PROFORMA FOR SUBMISSION OF PROPOSALS
Government of India
Ministry of Science & Technology
Department of Science & Technology
Technology Bhawan, New Mehrauli Road,
NewGen IEDC seeks – “To promote knowledge based and technology-driven start-ups by harnessing young minds and their innovation potential in an academic environment” Background India is witnessing an upsurge of technology-driven and knowledge-based enterprises.
Whether it is the field of conventional business or in IT and ITES a sudden spurt in the number of new ventures or start-ups have taken the country by surprise.
Technology and Innovation are playing a major role in this process. It is as if all of sudden people, specially the young ones are no longer afraid to dream an idea and work actively to convert their ideas to commercially viable business.
While a few year back, the conversion of idea to product might have sounded a distant dream, with both technology and market being uncertain, things certainly have changed now.
More and more technocrats, students with practically no experience or industry experienced professionals are giving shape to their business ideas. It is as if the Silicon Valley story is reincarnating itself in India.
Encouraged by the motivating ecosystem students are no longer giving preference to campus placements and are going for deferred placement to give a chance to their dream projects.
However, it is felt that initial support to the start-ups has been one of the deterrent in the process of the launch. Students (their parents) have already incurred a heavy expenditure for the payment of tuition fees and subsistence and are cash strapped.
Anticipating this movement and to empower the younger generation to acclimatize themselves to innovation and entrepreneurship culture, the Department of Science and Technology has initiated a programme called New Generation Innovation And Entrepreneurship Development Centre (NewGen IEDC). NewGen IEDC has a mission to “promote knowledge based and technology-driven start-ups by harnessing young minds and their innovation potential in an academic environment” The Programme New Generation Innovation and Entrepreneurship Development Centre (NewGen IEDC) is programme launched by National Science and Technology Entrepreneurship Development Board (NSTEDB), Department of Science & Technology (DST), Government of India.
NewGen IEDC will aim to inculcate the spirit of innovation and entrepreneurship amongst the young S&T students, encourage and support start-up creation through guidance, mentorship and support. The programme will be implemented in academic institutions. Students will be encouraged to take up innovative projects with possibility of commercialization.
NewGen IEDCs would also spread the message of entrepreneurship and create a culture of entrepreneurship in the Host Institution (HI). With faculty already trained in the nuances of entrepreneurship, the presence of NewGen IEDCs in HI would create a vibrant entrepreneurial culture amongst the students. Few amongst the “Job-Seekers” would be converted to “Job-Generators” through the entrepreneurial route.
Objectives of NewGen IEDC
1. To channelize the knowledge and the energy of youth towards becoming active partners in the economic development process.
2. To catalyze and promote development of knowledge-based and innovationdriven enterprises and promote employment opportunities amongst youth specially students.
3. To inculcate a culture of innovation driven entrepreneurship.
4. To act as an institutional mechanism for providing various services including information on all aspects of enterprise building to budding S&T entrepreneurs.
The salient features of NewGen IEDC would be as follows –
1. It is a five year programme to be implemented in an educational institution.
2. A maximum of twenty new projects would be supported in a year.
3. The projects should be students projects with a high degree of innovation and commercial viability.
4. As far as possible the projects should be multi-disciplinary in nature and should be executed by teams consisting of students drawn from various levels.
5. The projects should also have a high degree of commercial viability to lead to possible startup by students.
Functions of NewGen IEDC
1. To motivate, support and mentor students for identification, development and commercialization of their innovative ideas.
2. To initiate targeted number of innovative student projects each year for new product development.
3. To organize Business Plan Competitions / Innovation Camps / Hackathons with active involvement of industry and alumni.
4. To guide and assist prospective entrepreneurs on various aspects such as preparing project reports, obtaining project approvals, loans and facilities from agencies of support system, information on technologies, etc.
5. To arrange interaction with entrepreneurs, bankers, professionals, potential customers and create a mentorship scheme for student innovators.
6. To facilitate creation of Entrepreneur’s Club / E-Cells in the college to foster culture of entrepreneurship amongst students.
Coordinating Agency NewGen IEDCs will be coordinated by Entrepreneurship Development Institute of India (EDII), Ahmedabad, on behalf of NSTEDB, DST and implemented by the Host Institutions. The role of coordinating agency will be to Invite and receive proposal for NewGen IEDC,
2. Initial scrutiny of proposals,
3. Convening of Experts Advisory Committee meeting, constituted by DST, to consider the proposals for support,
4. Release of funds to individual institutions,
5. Convening review meetings,
6. Monitoring, evaluation, documentation (including MIS and web-portal)
7. Mentoring and handholding of NewGen IEDC,
8. Maintaining database and compilation of progress.
Criteria for selection of an Institution to set up NewGen IEDC
1. The institution should be a University/Deemed University or an Institute/College offering Engineering, Technology, Science courses at degree level or above for at least 5 years. In case of a college/institute, it should be duly recognized and affiliated and while in case of the private institutions, it should be promoted by a Trust or a Society registered under relevant Acts besides being recognized/affiliated to AICTE/Universities.
2. Qualified and dedicated faculty in various disciplines with a good Research & Development base and background in industry related activities should be available.
3. Availability of two faculty trained in Entrepreneurship through DST sponsored Faculty Development Programme.
4. Minimum dedicated space of about 5000 square feet for housing the NewGen IEDC and the startups promoted through it, with the availability of utilities like electricity, water, telephone installation and internet connectivity.
5. Availability of workshops, laboratories and computational facilities.
6. Library with a good collection of books and journals.
7. Experience in Entrepreneurship Development and Promotion and Industry related activities such as Consultancy, Product Development, Testing, Calibration etc.
Status of the NewGen IEDC
1. The NewGen IEDC would have a visible identity on the Host Institution. It should maintain a separate books of account and a savings bank account exclusive for its financial transaction including receipt of grants in aid. It should function as a prominent Central Facility of the institution and not as a facility for a particular Department of the parent institution.
2. The NewGen IEDC should enjoy flexible administrative and financial status for ensuring effective and speedy implementation of the programmes and activities.
3. It should have effective linkages with different Departments, Centres and other facilities of the institution to spread entrepreneurial culture for optimal utilization of the expertise, resources and know-how available. It should network with other agencies involved in entrepreneurship development.
Budget & Funding Funding mechanism & Financial guidelines The Host Institution shall submit the proposal for setting up of NewGen IEDC as per the proforma placed at Annexure-I, to EDII, Ahmedabad. The financial assistance to the selected institution for establishment of NewGen IEDC, towards its non-recurring (as one time establishment cost) and recurring expenditure (Prototype Development Grant, Travel, Training and Contingencies, etc.) for five full operational years would be provided. However, the financial assistance would be available in the project mode on a year-to-year basis, based on successful implementation of the NewGen IEDC project and review by the National Experts Advisory Committee with a satisfactory rating.
The NSTEDB will provide limited one time non-recurring financial assistance, up to a maximum of Rs. 25.00 lakhs. The non-recurring grants would be provided for the establishment cost, furnishing of cubicles for start-ups, purchase of PC with printers, UPS, library books, journals, laptop, multimedia projector, office communication equipments and other equipments like 3D printers, prototyping equipments/software and shared equipments. The grants should NOT be used for funding purchase of land and construction of building.
The host institution should provide the support of two members of the faculty, trained in entrepreneurship development through DST sponsored Faculty Development Programme (FDP) in entrepreneurship development, 5000 sq.ft of dedicated space including a counseling/meeting room, office furniture, facility of conference hall/ auditorium, telephone and internet connection etc.
Recurring Grants The recurring budget will be provided for each year of operation for a maximum of five years. The maximum number of student project supported each year would be as follows –
The recurring cost would include the Honorarium to NewGen IEDC Coordinators (two coordinators Rs15,000/- pm each), Travel, Expense for Advisory Board and Review meeting, Contingencies and misc. expenditures.
The Prototype Development Grant of Rs. 250,000/- per project would cover the following expenditurea) A maximum amount of Rs 25,000/- to the mentor for providing guidance to the project team.
b) A maximum amount Rs 25,000/- per student group as stipend.
c) Rs 200,000/- for cost of raw material, prototype development cost, external vendor/consultant cost.
In case the expenditure on item no (c) is more than the stipulated amount of Rs 200,000/- the additional expenditure will be borne by the student team/college/institute.
The above funding is just indicative and may vary from case to case.
Review & Monitoring The periodic review of NewGen IEDCs would be carried out by NSTEDB, DST. The Host Institutions would provide access to the personnel, facilities and records for smooth conduct of the review. The National Experts Advisory Committee (NEAC) of Entrepreneurship in Education, constituted by DST, would review the activities of NewGen IEDC annually. NewGen IEDCs would submit their documents, duly approved by their Local Advisory Committees, to the coordinating agency, second year onwards, every year.
The Host Institution shall open a Savings Bank Account in which the grants-in-aid will be transferred. The bank account shall be jointly operated by the coordinator of NewGen IEDC and the Head of the Institution or a person nominated by the Head of the Institution. The grants-in-aid will be credited to this account and utilized solely for the activities of NewGen IEDC. The interest earned thereon shall be accounted for in the Utilization Certificate and shall be adjusted in the grants in aid of subsequent years.
All financial receipts/funds received by NewGen IEDC shall be credited to this account. Surplus funds generated through NewGen IEDC activities (and not the grants-in-aid) and revenue earned should be credited to the same bank account to continue the activities of NewGen IEDC beyond the project life (maximum 5 years).
However, DST grants-in-aid or interest earned thereon should not be used to create the corpus. The accounts should be audited either by the Chartered Accountant in case of private Institution or by the Financial head in case of the Government Institution or as per the norms of the parent institution.
The NewGen IEDC will maintain a separate books of account. The NewGen IEDCs should also maintain a separate stock register for the assets created. The Utilization Certificate (UC) and Statement of the Audited Expenditure (SAE) has to be submitted to the Coordinating agency EDII, Ahmedabad, who would, in turn submit a consolidated UC to DST. The format for UC and SAE is given in Annexure – VI.
Utilization Certificate and Statement of Audited Expenditure
The Coordinating agency, EDII, Ahmedabad, will submit Utilization Certificate and Statement of Audited Expenditure annually in the prescribed proforma of DST. The Utilization Certificate is also to be uploaded in the Public Financial Management System (formerly Central Plan Scheme Monitoring System CPSMS) website www.pfms.nic.in. The interest earned on the grants-in-aid shall be reflected in UC.
Although the Coordinating agency EDII, Ahmedabad would be administering the NewGen IEDC on a day to day basis, NSTEDB, DST would be the overall controlling and decision making authority. HIs should consult the Department in case of any doubts or clarifications.
Organizational requirements The NewGen IEDCs will function under the guidance and control of the Head of the Host Institution. The Head of Institution will be solely responsible for the implementation and successful operation of NewGen IEDCs in the Host Institution.