Atal Incubation Centres: an initiative of government to nurture innovative startups
Atal Incubation Centres: an initiative of government to nurture innovativestartups
Indiangovernment always introduces new initiatives to encourage startups and offeropportunities for raising entrepreneurs to develop. Here, we are talking aboutone of the latest government plans, Atal Innovation Mission. AIM aims toencourage the establishment of new incubation centers called Atal IncubationCentres. These centres will nourish start-up businesses that are breaking newground in their pursuit to become extensible and sustainable businesses.
Thesecenters build preeminent incubation amenities in diverse sectors of the countrywith required physical infrastructure in terms of funds, material, machine andoperating facilities, including sectoral experts for mentoring the start-ups, supportin business planning, access to seed capital as well as training.
How does AIC Work?
These AtalIncubation Centres offer the startups with valuable guidance, technologicalaid, and access to investors, networking, and facilitating a host of otherresources. The government holds the incubatees to set up a sustainable,scalable and productive business model by presenting physical infrastructureand value-added support services.
Startupsalso receive direction through the powerful chain of coaches who givesector-specific information and real-world practical direction. Events and inspirational programs areorganized. Startups get complete opportunity to leverage from forge alliancesand networks with academia to funding resources, and support from existingincubators. Moreover, now, startups do not need to worry about manpower. Thescheme supports to build a strong team with adequate knowledge andexperience.
This schemecovers the capital and operational expenditures to establish and operate AICand contribute financial assistance for up to Rs. 10 crores for maximum 5years.
There arenot a lot of conditions; single person, group of people, higher educationalinstitutions, R&D institutes, corporate sector, and alternative investmentfunds registered with SEBI, business accelerators all are eligible to apply.
The applicantneeds to provide at least 10,000 sq. ft. of ready-to-use, built-up space, forthe exclusive use of the AIC.
Objectives of the Scheme
The ultimategoal of this scheme is to set up some best incubation centers in the particularsectors like health, education, agriculture, manufacturing, transport, andenergy, etc. These incubation centersfocus on encouraging innovative technology-based startups that have anapplication and/or impact in the core sectors of the economy.
- Under this scheme, AtalIncubation Centres can be established by one or more collaborating entities.
- AICs are encouraged to focus on alimited number of areas, which align with their core strengths. The AIC shouldhave up to a maximum of three primary sectors of focus.
- As per the rule, the centers thatbecome successful will be required to incorporate a Special Purpose Vehicle(SPV), either a Section 8 company or a private limited company registered underthe Companies Act, 2013.