The ASPIRE scheme was launched to provide the necessary skill set for setting up business enterprises and also to facilitate the market linkages available to entrepreneurs. The most important component is to set up Livelihood Business Incubators (LBI) under National Small Industries Corporation (NSIC), KVIC or Coir Board, or any other Institution/agency of Gol/State Govt. LBI is a mix of “promotion of entrepreneurship and skill development” and involves setting up live “demo projects”. Govt. of India has set up a framework for Start-up Promotion through the Small Industries Development Bank of India (SIDBI) to enable ideas/innovation with creativity and scalability to come to the fore and convert them into commercial enterprises within a specific period.
A Fund of Funds will be created under SIDBI for the purpose and INR 60 Cr earmarked for the same. Private partner institutions and entities can also set up livelihood incubation centers under PPP mode with the aforesaid institutions.
- Promote entrepreneurship culture in India.
- Grassroots economic development at the district level
- Promote innovation to further strengthen the competitiveness of
- Create new jobs and reduce unemployment.
- Facilitate innovative business solutions for unmet social needs.
The Local Business Improvement Authorities (LBI) have been asked to set up business incubators and provide mentoring and hand-holding with facilitation for funding to empower eligible youth to start their business enterprises. LBI’s objectives are to promote new low-end-technology/livelihood-based enterprises and impart entrepreneurship and skill development training to youth.
The Technical and Innovation Board (TBI) aims to provide a platform for the speedy commercialization of technologies developed in the host institution or any academic and R&D institution of the country. TBI aims to promote new technology/knowledge-based enterprises and help them create new technology-based businesses.
Benefits of the Scheme
- The money will be used to develop business models for aggregation and value-addition relevant for rural areas, as well as to improve efficiency and reduce wastage.
- Business models for the creation of local employment in rural Areas.
- For setting up of LBs, one-time grant of 100% of the cost of Plant & Machinery other than the land and infrastructure or an amount up to INR 100.00 lakh. In case of incubation centers to be set up under PPP mode, one-time grant of 50%. The total allocated budget under this head would be INR 62.50 Crore for 80 LBIs adequately skilling a targeted 104000 youth over 3 years.
Implementation of the strategy
1. The main focus area under the livelihood incubation is to take up commercial activities which are already established to create enterprises on a large scale. The LBI program will be implemented as follows: (i) National Small Industries Corporation (NSIC), Khadi and Village Industries Commission (KVIC), or Coir Board or any other Institution/agency of Gol/State Govt. to replicate the MUSIC’s successful “Rapid Incubation Model”.
2. GoI/State Govt. of India (GOI) has opened the door for private sector participation in setting up new incubator centers under PPP mode, i.e. NSIC, KVIC, or Coir Board, or any other Institution/agency of GOI/state government. Proposals in the prescribed proforma along with necessary enclosures and endorsement from the Head of the designated agencies will be considered for consideration.