NSIC sets up 72 incubation centres
Updated: Mar 20, 2014 02:20:51pm
New Delhi, Mar 20 (KNN) Mere skilling of people is no solution to the employment problem in the sector. Skilled people will demand jobs, but where are the jobs? NSIC is not interested in only skilling and making people job-seekers, Chairman and MD, HP Kumar said adding “Instead, our incubation model makes them job-givers and addresses the basic issue of unemployment."
In three years, National Small Industries Corporation (NSIC) has set up 72 such centres, and is now setting up such models in 12 countries.
“One centre incubates about 300 people a year, who get on-the-job training, machines, marketing support, etc over a period of three months. The employment created depends on the size of the project, so I would say the success rate is almost 30 per cent. But these are only new enterprises. The remaining 70 per cent, too, doesn’t go waste, as the people get skilled,” Kumar told Hindu Business Line in an interview.
Incubation has been an important part for start-ups in the last few years. These programmes have helped a lot of hot start-ups to emerge and encourage other members to become entrepreneurs.
Incubation programmes give entrepreneurs an experienced mentorship, advice, fund, entrepreneur skills and practical training. They take a small amount of equity in exchange and regularly monitor the progress.
There are many successful examples of how universities have been playing a major role in development of entrepreneurship through incubation.
The institutes not only provide practical and theoretical knowledge to the students but also encourage students to develop new ideas.
Different Ministries including the Ministry of micro, small and medium enterprises (MSME) have started incubation projects in partnership with different universities and institutes.
“Incubation is an extremely successful development initiative. It is quite unparalleled in its development mission and it comes with huge dividends for the society,” said Executive Director of Tiruchirappalli Regional Engineering College (Trec Step), R M P Jawahar told KNN.
Trec Step has so far incubated nearly 200 start-ups, since 1986. “With MSME we have identified 10 start-up ventures in the areas ranging from Water Purification systems, Nano Technology and many other ventures,” he said.
Some of the products developed through incubation in TREC Step are- Solar Dryers, TV Boosters, Shock Proof Main Switches, Solar Water Heater, Tube light Inverters etc.
“The idea of Incubation has been a success. We grant the project to the engineering colleges/ technical institutes and then the experts and professors mentor the project. However, we also do time to time monitoring of the progress and requirements,” said Deputy Director, Incubation Centre, MSME Ministry, L K Chowdhary.
Chowdhary said that till now more than 150 projects have been successfully incubated.
Trec Step which has incubated nearly 200 star-ups since the last 24 years has received Rs 56 lakhs seed funds and more than Rs 3 crore for the ventures.
To fund start-ups, these incubators receive grants from the government in terms of technology facilities while the institutions/co-promoters is expected to provide land and building.
Further, Jawahar said that while recurring expenditure is provided by the government for the first five years, incubators have to generate their own resources as self-sustaining ventures.
“New seed funding instruments are also launched by various ministries for the benefit of young start-up entrepreneurs from time to time. National Science and Technology Entrepreneurship Development Board provides up to Rs 50 lakh seed fund (soft loan) support for entrepreneurs while Technology Development Board provides Rs 25 lakh seed fund through the concerned incubators.
“For developing innovative prototypes processes, the Department of Scientific Industrial Research also provides Rs 15 lakh for developing innovation and another Rs 45 lakh for commercialising them at 50 per cent cost support for select innovations,” he added.
The Ministry of Finance has even provided Service Tax exemptions for young start-ups and for the hosting incubators up to a certain ceiling.
Besides, funds are generated from rent, consultancy, equity share, training programmes which make the set-up sustainable.
The institute and the MSME Ministry have been satisfied with the outcome of the scheme as there have been several success stories of the incubatees who have not only designed their products but have also successfully commercialised their ideas and have grown as enterprises.
According to a survey by TMI group, among 328 engineering graduates here with work experience ranging from zero to five years, 98 per cent of the engineers was open to take up jobs in these enterprises. The survey findings assume significance in view the serious talent crunch the SMEs are facing now. (KNN/SD)
In three years, National Small Industries Corporation (NSIC) has set up 72 such centres, and is now setting up such models in 12 countries.
“One centre incubates about 300 people a year, who get on-the-job training, machines, marketing support, etc over a period of three months. The employment created depends on the size of the project, so I would say the success rate is almost 30 per cent. But these are only new enterprises. The remaining 70 per cent, too, doesn’t go waste, as the people get skilled,” Kumar told Hindu Business Line in an interview.
Incubation has been an important part for start-ups in the last few years. These programmes have helped a lot of hot start-ups to emerge and encourage other members to become entrepreneurs.
Incubation programmes give entrepreneurs an experienced mentorship, advice, fund, entrepreneur skills and practical training. They take a small amount of equity in exchange and regularly monitor the progress.
There are many successful examples of how universities have been playing a major role in development of entrepreneurship through incubation.
The institutes not only provide practical and theoretical knowledge to the students but also encourage students to develop new ideas.
Different Ministries including the Ministry of micro, small and medium enterprises (MSME) have started incubation projects in partnership with different universities and institutes.
“Incubation is an extremely successful development initiative. It is quite unparalleled in its development mission and it comes with huge dividends for the society,” said Executive Director of Tiruchirappalli Regional Engineering College (Trec Step), R M P Jawahar told KNN.
Trec Step has so far incubated nearly 200 start-ups, since 1986. “With MSME we have identified 10 start-up ventures in the areas ranging from Water Purification systems, Nano Technology and many other ventures,” he said.
Some of the products developed through incubation in TREC Step are- Solar Dryers, TV Boosters, Shock Proof Main Switches, Solar Water Heater, Tube light Inverters etc.
“The idea of Incubation has been a success. We grant the project to the engineering colleges/ technical institutes and then the experts and professors mentor the project. However, we also do time to time monitoring of the progress and requirements,” said Deputy Director, Incubation Centre, MSME Ministry, L K Chowdhary.
Chowdhary said that till now more than 150 projects have been successfully incubated.
Trec Step which has incubated nearly 200 star-ups since the last 24 years has received Rs 56 lakhs seed funds and more than Rs 3 crore for the ventures.
To fund start-ups, these incubators receive grants from the government in terms of technology facilities while the institutions/co-promoters is expected to provide land and building.
Further, Jawahar said that while recurring expenditure is provided by the government for the first five years, incubators have to generate their own resources as self-sustaining ventures.
“New seed funding instruments are also launched by various ministries for the benefit of young start-up entrepreneurs from time to time. National Science and Technology Entrepreneurship Development Board provides up to Rs 50 lakh seed fund (soft loan) support for entrepreneurs while Technology Development Board provides Rs 25 lakh seed fund through the concerned incubators.
“For developing innovative prototypes processes, the Department of Scientific Industrial Research also provides Rs 15 lakh for developing innovation and another Rs 45 lakh for commercialising them at 50 per cent cost support for select innovations,” he added.
The Ministry of Finance has even provided Service Tax exemptions for young start-ups and for the hosting incubators up to a certain ceiling.
Besides, funds are generated from rent, consultancy, equity share, training programmes which make the set-up sustainable.
The institute and the MSME Ministry have been satisfied with the outcome of the scheme as there have been several success stories of the incubatees who have not only designed their products but have also successfully commercialised their ideas and have grown as enterprises.
According to a survey by TMI group, among 328 engineering graduates here with work experience ranging from zero to five years, 98 per cent of the engineers was open to take up jobs in these enterprises. The survey findings assume significance in view the serious talent crunch the SMEs are facing now. (KNN/SD)
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