Atal Incubation Centres: an initiative of government to nurture innovative startups
Indian government always introduces new initiatives to encourage startups and offer opportunities for raising entrepreneurs to develop. Here, we are talking about one of the latest government plans, Atal Innovation Mission. AIM aims to encourage the establishment of new incubation centers called Atal Incubation Centres. These centres will nourish start-up businesses that are breaking new ground in their pursuit to become extensible and sustainable businesses.
These centers build preeminent incubation amenities in diverse sectors of the country with required physical infrastructure in terms of funds, material, machine and operating facilities, including sectoral experts for mentoring the start-ups, support in business planning, access to seed capital as well as training.
How does AIC Work?
These Atal Incubation Centres offer the startups with valuable guidance, technological aid, and access to investors, networking, and facilitating a host of other resources. The government holds the incubatees to set up a sustainable, scalable and productive business model by presenting physical infrastructure and value-added support services.
Startups also receive direction through the powerful chain of coaches who give sector-specific information and real-world practical direction. Events and inspirational programs are organized. Startups get complete opportunity to leverage from forge alliances and networks with academia to funding resources, and support from existing incubators. Moreover, now, startups do not need to worry about manpower. The scheme supports to build a strong team with adequate knowledge and experience.
This scheme covers the capital and operational expenditures to establish and operate AIC and contribute financial assistance for up to Rs. 10 crores for maximum 5 years.
There are not a lot of conditions; single person, group of people, higher educational institutions, R&D institutes, corporate sector, and alternative investment funds registered with SEBI, business accelerators all are eligible to apply.
The applicant needs to provide at least 10,000 sq. ft. of ready-to-use, built-up space, for the exclusive use of the AIC.
Objectives of the Scheme
The ultimate goal of this scheme is to set up some best incubation centers in the particular sectors like health, education, agriculture, manufacturing, transport, and energy, etc. These incubation centers focus on encouraging innovative technology-based startups that have an application and/or impact in the core sectors of the economy.
- Under this scheme, Atal Incubation Centres can be established by one or more collaborating entities.
- AICs are encouraged to focus on a limited number of areas, which align with their core strengths. The AIC should have up to a maximum of three primary sectors of focus.
- As per the rule, the centers that become successful will be required to incorporate a Special Purpose Vehicle (SPV), either a Section 8 company or a private limited company registered under the Companies Act, 2013.