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Companies have been approached to set up incubation centres that will offer financial and non-financial support to manufacturing startups at various levels.
In a move to give a fillip to manufacturing startups, the department of promotion of industry and internal trade (DPIIT) will be signing memorandums of understanding (MoUs) with corporates to set up manufacturing incubation centres.
The companies that will set up the incubation centres will offer financial and non-financial support to manufacturing startups at various levels.
The MoUs are expected to be signed some time towards the end of this month.
DPIIT had approached over 100 large corporates, industry associations, and unicorns to emphasise on the importance of setting up manufacturing incubators and the benefits of collaboration with manufacturing startups.
A query on the issue to the ministry of commerce and industry did not elicit any response.
According to potential stakeholders aware of the development, DPIIT has now approached companies that have shown interest to send a short note on the ongoing and planned initiatives, and modes of engagement, which would fall under the ambit of the MoUs proposed to be signed between the firms and the department.
The arrangement, they say, could include financial and non-financial support to startups, such as mentorship, incubation handholding, pilot and business order support, and also funding.
The country already has incubation centres that support manufacturing, like the Foundation for Innovation and Technology Transfer in IIT Delhi, T-Hub -- which connects startups, corporations, governments, academia, and investors -- Atal Incubation Centre, National Initiative for Harnessing Innovations and Technology Incubation, and Development of Entrepreneurs, amongst others.
The idea of setting up manufacturing incubators first came to the fore during the DPIIT-organised “Startup Mahakumbh” festival to support the startup ecosystem last year.
Giving the rationale for setting up incubation centres, DPPIT says that these incubators would provide access to shared facilities for startups to support innovative product development and early-stage manufacturing, paving the way for growth and scaling up of the ecosystem.
They will also act as an interface between the startups and medium and large-scale companies, providing access to pilot facilities for manufacturing, test beds, prototyping facilities, design centres, risk capital, etc.
For corporates, setting up such incubators will be a win-win for both. DPIIT in its discussions with them has pointed out that corporates can allow businesses to leverage the innovative potential of startups through technology transfer from incubated startups, and co-create groundbreaking products.
Two companies can get competitive advantage in markets by working with incubated startups, which can help them in reducing costs and saving time.
DPIIT has suggested that corporates should initially start with small incubation programmes and then work towards setting up a separate entity in the form of a non-profit or private organisation with a long-term programme.
Feature Presentation: Rajesh Alva/Rediff.com
