Incubation Scheme (IS) 2026: ₹ 15,000,00 per idea & ₹ 1,00,00,000 plant support
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Quick answer
The Incubation Scheme (IS) provides financial support to Host Institutes for nurturing innovative ideas of MSMEs, offering up to ₹15,000 per idea and up to ₹1 crore for plant and machinery. Eligible institutions include technical colleges, universities, NGOs and government organisations involved in incubation. To apply, register on the official portal my.msme.gov.in/inc/, complete the HI/BI application and submit required documents.
At a glance
| Main benefit | ₹ 15,000,00 per idea; ₹ 1,00,00,000 plant |
| Ministry / department | Ministry Of Micro, Small and Medium Enterprises |
| Level | Central Government |
| Application mode | Online |
About the scheme
The Incubation Scheme (IS) under the MSME Innovative Scheme aims to foster untapped creativity and encourage the adoption of latest technologies in micro, small and medium enterprises. It recognises eligible institutions as Host Institutes that set up Business Incubators to provide infrastructure, technical guidance and financial assistance for proof‑of‑concept development of innovative ideas. The scheme funds idea development and plant‑machinery setup, enabling incubatees to validate and scale their concepts with mentorship and R&D facilities.
Benefits
- Up to maximum of ₹ 15,000,00 /-per idea shall be provided to HI for developing and nurturing the ideas.
- Up to ₹ 1,00,00,000 /- (max) shall be provided to HI for procurement and installation of relevant plant and machines including hardware and software etc. in BI for R&D activities and common facilities for incubatees of BI.
Who can apply (eligibility)
- Institutions such as Technical Colleges, Universities, other Professional Colleges/Institutes, R&D Institutes, NGOs involved in incubation activities, MSME-DIs/ Technology Centres or any Institute/Organization of Central/State Government.
Documents required
- University Affliation;
- All India Council for Technical Education (AICTE) Approval;
- National Accreditation Board for Testing and Calibration Laboratories (NABL) or Other Accreditation;
- Last two years audited annual accounts with auditor’s report;
- Any other documents as required.
How to apply
- 1Visit the official website my.msme.gov.in/inc/ and click on REGISTRATION button.
- 2Enter all required details and click Submit; after successful registration, click OK to open the login window.
- 3After login, click on Apply for HI/BI Approval button to open the HI/BI application window.
- 4Fill all details in the application form and click Final Submit button.
Frequently asked questions
What is the objective of Incubation Scheme?+
The main objective of this Schemeis to promote and support untapped creativity and to promote adoption of latest technologies in MSMEs that seek the validation of their ideas at the proof-of-concept level.
Who are eligible?+
Any person as individual or MSME, having the innovative ideas are eligible to avail the benefits of this scheme. The person should have innovative sort of idea which can be converted into prototype and further in business activity. The person is being called Incubatee.
Is there any qualification to become Incubatee?+
There is no qualification bar to become incubatee. However, MSME should have valid Udyam Registration (UM) and individual should have Aadhar card number.
How to take benefit of scheme?+
The person (incubatee) should get attached with any Host Institute (HI) for nurturing of their idea in Business incubator (BI) being set up by HI.
Who can become Host Institute(HI)?+
Institutions such as Technical Colleges, Universities, other Professional Colleges/Institutes, R&D Institutes, NGOs involved in incubation activities, MSME-DIs/ Technology Centres or any Institute/Organization of Central/State Government may apply for HI and set up a Business Incubator (BI).
Can funds be given to Incubatee directly?+
Financial support for all activities will be given to HI only and no funds can be transferred to incubatee's account.
NaukriZila is not a government website. Apply only on the official portal; never pay anyone to apply for a government scheme. Source: myScheme (Government of India)