Union Minister for MSME Narayan Rane launched an MSME Innovation Scheme for incubation, design, and IPR of the small businesses along with MSME Idea Hackathon 2023. The Innovation scheme is aimed at promoting creativity and entrepreneurship in the MSME sector.
Stressing on the importance of MSMEs in building an Atmanirbhar Bharat, Minister Rane said the new scheme would act as a hub for innovation and development of new ideas which could transform into viable businesses with the right guidance and support. These businesses can benefit society directly and also be marketed successfully.
Minister of State of MSMEs, Bhanu Pratap Verma, who was present at the launch said that the “MSME Innovation Scheme will help entrepreneurs in developing new ventures.”
What is the MSME Innovative Scheme?
The Innovative Scheme is a combination of three components i.e. Incubation, Design, and Intellectual Property Rights (IPR). In its statement, the MSME Ministry said that the scheme is a holistic approach to unify, synergize and converge 3 sub-components and interventions with a single purpose.”
The MSME Innovation Scheme will promote creativity, the adoption of the latest technologies and increase awareness about the importance of IPR, according to the MSME Ministry. The scheme will provide support through guidance, financial and marketing assistance, technical support, etc. to ensure the scaling up of MSMEs. The scheme was launched with the combination of existing sub-schemes around incubation, design, and IPR for MSMEs. These schemes will continue to operate as individual programs.
Incubation Support
The main motive of the innovation scheme is to promote and support untapped creativity and to promote the adoption of the latest technologies in MSMEs that seek the validation of their ideas at the proof-of-concept level. The government will recognise certain institutes to act as business incubators. Under the scheme, these host institutes will provide monetary help of up to ₹15 lakh per idea and up to ₹1 crore for relevant plants and machines.
MSME Idea Hackathon was also announced by the government to invite ideas from MSMEs, innovators, and students through host institutes
Design Component
The design component of the “MSME Innovative Scheme” will guide towards solving problems related to the design of the product, both new and existing. Prestigious institutes such as IISc Bangalore, IITs, NITs, National Institute of Design, etc. would act as partner institutions for facilitating the design component of the scheme.
The objective of this component is to bring the Indian manufacturing sector and Design expertise, design fraternity onto a common platform. Financial assistance up to ₹40 lakh for design projects and up to ₹2.5 lakh for student projects will be provided as per the ministry.
Intellectual Property Rights (IPR)
IPR component of the “MSME Innovative Scheme” will look at measures related to the protection and commercialization of ideas of MSMEs. For this purpose consultation support along with financial assistance will be given to MSMEs. In IPR (Intellectual Property Rights), financial assistance up to ₹5 lakh for a foreign patent, ₹1 lakh domestic patent, ₹2 lakh for GI registration, ₹15,000 for design registration, ₹10,000 for Trademark in the form of reimbursement will be provided.
Equity support of up to ₹1 crore will also be provided by the government for the commercialization of ideas, designs, and patents. This will help MSMEs to scale and raise more funds. In this regard, the SIBDI will create and manage a separate corpus as the fund manager.
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