NIDHI-PRAYAS for Startups and Innovators
Build and Validate Your Prototype
NIDHI-PRAYAS helps young innovators and early-stage startups convert promising science and technology ideas into working physical prototypes. The grant is designed for ideas with commercialization potential. The innovators / startups based on the eligibility can apply to any of the PRAYAS Centre (PC) or Advance PRAYAS Centre (APC).
Upto Rs 20 lakhs OR 40 lakhs*
Prototype funding support
*subject to application and selection under PC or APC
15 Months
Maximum project duration
Eligibility & Requirements
Review detailed qualification standards for all applicants.
Individual Innovator
- Innovator without having a startup can apply for PRAYAS grant.
- Must demonstrate clear ownership (or licensed right to use) of any intellectual property underpinning the proposed prototype.
- Applicant innovator must be at least eighteen (18) years of age on the date of application. Proof of age and Indian citizenship (e.g., valid passport, Aadhar or Voter ID) will be required at the time of submission.
- If the applicant innovator works in a team with other innovators there has to be an agreement among the team about the lead innovator who would apply, and the funds will be transferred to the lead innovator’s account (after selection). IP generated would vest with the innovator or with the team as per the agreement and it would be further taken for commercialization.
- The individual innovators receiving the NIDHI PRAYAS Grant are encouraged to formally incorporate as a DPIIT registered startup within 6 to 8 months of receiving support.
- Applicants (Individual innovators / Startups) who have cumulatively received more than ₹40 lakh in grant funding from government schemes/programs are not eligible for NIDHI PRAYAS 2.0 support.
- Total NIDHI PRAYAS 2.0 grant support for any innovation should not exceed ₹ 40 lakh, including the support received under PRAYAS 1.0
Startup
- The entity must have been incorporated in India for not more than five (5) years as of the application date.
- At least fifty-one percent (51%) of the equity in the startup must be held by Indian citizens.
- The startup’s annual turnover shall not exceed ₹1Cr in any financial year since incorporation.
- Applicant Startup founder must be at least eighteen (18) years of age on the date of application. Proof of age and Indian citizenship (e.g., valid passport, Aadhar or Voter ID) will be required at the time of submission.
- Must demonstrate clear ownership (or licensed right to use) of any intellectual property underpinning the proposed prototype
- Applicants (Individual innovators / Startups) who have cumulatively received more than ₹40 lakh in grant funding from government schemes/programs are not eligible for NIDHI PRAYAS 2.0 support.
- Total NIDHI PRAYAS 2.0 grant support for any innovation should not exceed ₹ 40 lakh, including the support received under PRAYAS 1.0
Funding Eligibility Details
Guidelines regarding prior funding, progression pathways, and transition from standard to advanced centres.
01
Prior PRAYAS 1.0 Funding
Applicants who have received NIDHI PRAYAS 1.0 funding are eligible to apply to PRAYAS 2.0 only at an Advanced PRAYAS Centre (APC), for a maximum grant of ₹40 lakh. These applicants must possess a deep-tech idea or aim to have readily deployable advance prototypes which would progress towards Commercialization and should strive to eventually be capable of raising funding from VCs or applying to the funding opportunities being made possible under the RDI Scheme.
02
New Applicants
Applicants who have not received funding under NIDHI PRAYAS 1.0 or 2.0 are eligible to apply at both a PRAYAS Centre (PC) (up to ₹20 lakh) and at an APC (up to ₹40 lakh).
03
APC & PC Transition
PRAYASEEs who receive funding from an APC (of any amount) are not eligible to receive PRAYAS 2.0 grants from any PC. However, those who have received funding from a PC may apply at an APC for the balance amount (i.e. up to ₹40 lakh minus the amount received from the PC).
!
Important Note
Any applicant or startup whose proposal is evaluated and rejected at the PLMC level of an Advance PRAYAS Centre (APC) shall be strictly ineligible to submit subsequent applications to any standard PRAYAS Centre (PC) under the NIDHI-PRAYAS 2.0 program. This provision is established to mandate the appropriate utilization of PC-level prototyping support before seeking advanced funding at an APC.
Not be considered under NIDHI-PRAYAS
The following will not be considered under NIDHI-PRAYAS.
Projects related to Pure Software development, e-Commerce, Service solutions, App based solutions.
Funding research or student internship in Academic institutions or R&D organisations.
Innovators shall also not be supported in parallel under NIDHI-EIR and NIDHI-PRAYAS.
Specific Criteria of Innovators / Startups for Applying to Advance PRAYAS Centres (APC)
Nature of Supported Projects
Industry-transforming deep-tech products or processes with clear global impact and commercial potential
Well-defined technology-development and de-risking objectives, with measurable TRL milestones (e.g., TRL 3–4 → TRL 6).
Focus on building and testing a market-validated prototype within 15 months.
Activities focused on generating empirical data to validate product performance, achieve regulatory compliance, and demonstrate mass manufacturing scalability
Acquisition of scientific/technical evidence (e.g., pilot trials, validation studies) to demonstrate proof-of-concept to licensors, investors, or customers.
Creation of registered IP rights (patents, designs, etc.) fully owned by an Indian entity
Preference Criteria
Projects satisfying one or more of the following may receive priority consideration:
Highly innovative solutions, products, or technologies that offer a distinct competitive advantage or significant technological improvement over existing alternatives in the Indian ecosystem.
A startup / innovation which involves early-stage technologies based on scientific or engineering advancements, which are yet to be developed for any commercial applications.
An innovation which typically produces a solution along an unexplored pathway based on new knowledge within a scientific or engineering discipline or by combining knowledge from multiple disciplines.
Innovations that demonstrate a significant technological or market breakthrough and have no prior equivalent or precedent at the global level.
Solutions addressing an unmet need for the first time in India.
Complex, multidisciplinary products requiring integration of multiple engineering or scientific domains.
Technologies aligned with national strategic priorities (e.g., defence, healthcare, clean energy, AI-hardware, advanced manufacturing, agri-tech).
Demonstrated collaboration potential (formal partnerships, MoUs, or letters of support from academia, research labs, or industry).
Proven track record from PRAYAS 1.0 or equivalent schemes (e.g., completed prototypes, IP filings, pilot deployments).
Successful prototypes which now need demonstration in real-time environment and operational environment.
FAQ
Common Questions
1 Can students or individuals currently employed apply for the PRAYAS grant?
Can students or individuals currently employed apply for the PRAYAS grant?
Applicants who are employed or are full-time students in an academic or R&D institution must submit a No Objection Certificate (NOC) from their employer or institution. The NOC must explicitly permit engagement with the PRAYAS project and confirm that any intellectual property generated will vest entirely with the innovator or startup.
2 Can a team of innovators apply for the PRAYAS grant, or must the application be submitted by an individual?
Can a team of innovators apply for the PRAYAS grant, or must the application be submitted by an individual?
If the applicant works in a team with other innovators there has to be an agreement among the team about the lead innovator who would apply, and the funds will be transferred to the lead innovator’s account (after selection). IP generated would vest with the innovator or with the team as per the agreement and it would be further taken for commercialization.
The individual innovators are encouraged to formally incorporate as a DPIIT registered startup within 6 to 8 months of receiving support.
The individual innovators are encouraged to formally incorporate as a DPIIT registered startup within 6 to 8 months of receiving support.
3 Can a startup that has existed for more than 7 years apply for NIDHI-PRAYAS if it is currently inactive?
Can a startup that has existed for more than 7 years apply for NIDHI-PRAYAS if it is currently inactive?
No, refer the eligibility criteria for the startups to apply for NIDHI PRAYAS
4 Can a startup apply if it has previously received funding from another government scheme?
Can a startup apply if it has previously received funding from another government scheme?
Applicants who have cumulatively received more than ₹40 lakh in grant funding from government schemes/programs are not eligible for NIDHI PRAYAS 2.0 support.
5 If a project remains incomplete, is the innovator required to return the entire grant amount, including the portion already utilized?
If a project remains incomplete, is the innovator required to return the entire grant amount, including the portion already utilized?
For incomplete projects, PRAYASEE must return unutilized amount of the grant which has been awarded to them.
6 Can the grant be used to pay salaries to founders or team members?
Can the grant be used to pay salaries to founders or team members?
Innovators or founding teams who have no other source of income during the project term may be eligible for a sustenance allowance up to 20 percent of their approved PRAYAS grant, provided:
a. The PLMC (PRAYAS Local Monitoring Committee) at PC/ APC deems it necessary based on the strength of the idea and overall project timeline.
b. The innovator or startup team (in case of startup) commits to work full- time on PRAYAS without any other formal employment.
a. The PLMC (PRAYAS Local Monitoring Committee) at PC/ APC deems it necessary based on the strength of the idea and overall project timeline.
b. The innovator or startup team (in case of startup) commits to work full- time on PRAYAS without any other formal employment.
7 What stage of product development is suitable for PRAYAS funding?
What stage of product development is suitable for PRAYAS funding?
NIDHI PRAYAS 2.0 grant is Proof-of-concept grant for converting idea and innovations into a prototype/ advanced prototype/ MVP. Proposals for the products having crossed MVP Level will not be eligible to apply for the Grant.
8 Who is eligible to apply under NIDHI-PRAYAS, and what benefits do these programs offer?
Who is eligible to apply under NIDHI-PRAYAS, and what benefits do these programs offer?
Refer the Eligibility Criteria of Innovators/ Startups for Applying to PRAYAS and Advance Prayas Centres (APC)
9 If a PRAYAS Centre where I previously received support has shut down or discontinued the program, am I eligible to apply again through another PRAYAS Centre?
If a PRAYAS Centre where I previously received support has shut down or discontinued the program, am I eligible to apply again through another PRAYAS Centre?
No, if the entire grant has been disbursed and utilised by the PRAYASEE, they cannot apply again.
10 Is the innovator required to commercialize the product after completing the prototype?
Is the innovator required to commercialize the product after completing the prototype?
Yes, the innovator/startup applying for NIDHI PRAYAS should have a clear roadmap for commercialization.
11 Do we have to pay any charges to the PRAYAS centres?
Do we have to pay any charges to the PRAYAS centres?
No, currently no charges have to be paid if the support is within the purview of PRAYAS program.
12 Is there any application fee or participation charge required to apply to a PRAYAS Centre?
Is there any application fee or participation charge required to apply to a PRAYAS Centre?
No, there is no application or a participation fee to apply to a PRAYAS Centre.
13 I have already been supported under NIDHI PRAYAS 1.0; Can I receive the grant again in NIDHI PRAYAS 2.0 ?
I have already been supported under NIDHI PRAYAS 1.0; Can I receive the grant again in NIDHI PRAYAS 2.0 ?
Applicants who have received NIDHI PRAYAS 1.0 funding are eligible to apply to NIDHI PRAYAS 2.0 only at an Advanced PRAYAS Centre (APC), for a maximum grant of ₹40 lakh. Total NIDHI PRAYAS 2.0 grant support for any innovation should not exceed ₹40 lakh, including the support received under PRAYAS 1.0
These applicants must possess a deep-tech idea or aim to have readily deployable advance prototypes which would progress towards Commercialization and should strive to eventually be capable of raising funding from VCs or applying to the funding opportunities being made possible under the RDI Scheme.
These applicants must possess a deep-tech idea or aim to have readily deployable advance prototypes which would progress towards Commercialization and should strive to eventually be capable of raising funding from VCs or applying to the funding opportunities being made possible under the RDI Scheme.
14 How much quantum of funding can be availed if I am recipient of NIDHI PRAYAS 1.0?
How much quantum of funding can be availed if I am recipient of NIDHI PRAYAS 1.0?
Total NIDHI PRAYAS 2.0 grant support for any innovation should not exceed ₹40 lakh, including the support received under PRAYAS 1.0
15 If I am not 18 years old as on the date of submitting my application, but my father/mother/brother/sister/friend is above 18 years, can they apply on my behalf?
If I am not 18 years old as on the date of submitting my application, but my father/mother/brother/sister/friend is above 18 years, can they apply on my behalf?
No the applicant applying is required to know the technical know-how for the proposed prototype
16 I am a college student, who is currently in second year of engineering, can I apply at a PC/APC with my innovation?
I am a college student, who is currently in second year of engineering, can I apply at a PC/APC with my innovation?
Refer the eligibility criteria Eligibility Criteria of Innovators/ Startups for Applying to PRAYAS and Advance Prayas Centres (APC)
17 Is it mandatory to form a company if I want to apply under NIDHI PRAYAS 2.0
Is it mandatory to form a company if I want to apply under NIDHI PRAYAS 2.0
Individual innovators are allowed to apply for NIDHI PRAYAS 2.0, however the individual innovators receiving the NIDHI PRAYAS Grant are encouraged to formally incorporate as a DPIIT registered startup within 6 to 8 months of receiving support.
18 What will be the timeline for completing the project under PRAYAS 2.0?
What will be the timeline for completing the project under PRAYAS 2.0?
The project term for each PRAYASEE will be 15 months.
19 After getting selected under the program will I get the sanctioned funding in one go?
After getting selected under the program will I get the sanctioned funding in one go?
The grant funding to the innovators/startups will be released on tranche/milestone basis.
20 Will there be any charges to be paid to PC/APC after being onboarded under the program
Will there be any charges to be paid to PC/APC after being onboarded under the program
As per the NIDHI PRAYAS Grant guidelines, Incubator/ PC/ APC are not allowed to take/hold equity stakes in any PRAYASEE/ Incubatee/ Startup in exchange of any components related to the NIDHI PRAYAS Grant such as usage of facilities, fabrication, Prototyping Grant Amount etc. However, by mutual consent of Incubator/ PC/ APC and PRAYASEEs, any agreement executed between an Incubator/ PC/ APC and a PRAYASEE during the course of a PRAYASEE’s PRAYAS programme must explicitly clarify that that such an arrangement is independent of the NIDHI PRAYAS Grant and is not a condition for services availed under the NIDHI PRAYAS 2.0 scheme.
21 After the end of the program/project, will I have to return back the utilized amount to the PC/APC?
After the end of the program/project, will I have to return back the utilized amount to the PC/APC?
No, the funding is in the form of grant to utilised by innovator/startup for the development of proposed prototype. However, for any unutilised amount balance, the same has to be returned to your designated PC/APC
22 I have both hardware and software part in my innovation, can I apply?
I have both hardware and software part in my innovation, can I apply?
Yes
23 Other than funding, what other support will be available for the innovator/startup?
Other than funding, what other support will be available for the innovator/startup?
They will get access to the space, fab lab, technical guidance, mentorship, during their project duration.
24 Is there any breakup of how the expenses need to be incurred?
Is there any breakup of how the expenses need to be incurred?
Refer the scheme guideline for usage of the prototype grant
25 Can we submit application if the firm is registered as a proprietorship?
Can we submit application if the firm is registered as a proprietorship?
The application has to done as an individual innovator and as per the NIDHI PRAYAS guidelines, the individual innovators are encouraged to formally incorporate as a DPIIT registered startup within 6 to 8 months of receiving support.
26 Can I apply for a software product?
Can I apply for a software product?
Projects related to pure Software development, Ecommerce, Service, App based solutions will not be supported under NIDHI-Prayas. However, software as one of the components of hardware product (for ex. an IoT product) can be considered for project funding for an integrated hardware prototype development. The proposed prototype must be a tangible, physical / phygital product grounded in science or technology.
27 Is there any technology preference OR priority areas under NIDHI-PRAYAS?
Is there any technology preference OR priority areas under NIDHI-PRAYAS?
DST has priority areas for supporting innovations under the PC. The current focus areas are: Energy security and transition, and climate action; “Deep Technology” including quantum computing, robotics and space; Hardware-based Artificial Intelligence and its application to Indian problems; medical devices; healthcare, digital agriculture; advance defense technologies; assistive devices; manufacturing; technologies whose indigenization is vital for Economic Security and Atmanirbharta; sectors or technologies deemed necessary in the public interest; and other emerging technology areas.