ASPIRE Scheme 2022 : How to Apply, Objectives, Eligibility, Benefits

ASPIRE Scheme 2022

ASPIRE Scheme 2022

Most of the population of India is still dependent on agriculture business. Despite the fact that the government has implemented several constructive programs, poverty and unemployment continue in the country. To deal with this, the government has started a scheme named ASPIRE, the main objective of the ASPIRE scheme is to create employment and business in the agriculture sector. A Government of India Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE) has been promoted by the Ministry of Micro, Small and Medium Enterprises (MSME). It was established to establish a network of incubation centers and technology centers across India. The main objective of ASPIRE Scheme is to promote entrepreneurship. It aims to encourage agri-industry start-ups to innovate.

What is the Aspire Scheme?

A scheme named Aspire has been launched by the Government of India to promote entrepreneurship, startup and innovation in rural industry, agro-industry. The Aspire scheme is based on the budget speech of the Hon’ble Finance Minister for 2014-15. He proposed the creation of a technology center network to promote innovation, entrepreneurship and agri-industry and provided a fund of Rs 200 crore.

He also proposed setting up a program to facilitate back-and-forth relationships with multiple manufacturing and service delivery chains. Apart from this, he also proposed to start a nationwide “District Level Incubation and Accelerator Programme”. These initiatives will be aimed at developing new ideas and providing necessary support to encourage entrepreneurship.

The ASPIRE scheme aims to provide entrepreneurs with the necessary skills to start a business, as well as enable market engagement and hand holding for a significant period to achieve self-sustainability.

Objectives of Aspire Scheme

  • Facilitate innovative business solutions by meeting the societal needs under the Aspire scheme.
  • To create different types of jobs in India and to reduce the unemployment rate.
  • Promoting innovation to strengthen the competitiveness of MSME sector.
  • To promote entrepreneurship culture in India under the Aspire scheme.
  • Economic development at the district level under the Aspire scheme.

Eligibility Criteria for ASPIRE Scheme

  • Any such institution / agency of the Government of India / State Government working in the field of entrepreneurship development, technology, rural development or business management is eligible for ASPIRE scheme.
  • As an incubatee, anyone over the age of 18 can be trained.
  • Incubators who have previously received Government subsidy for the same set of activities under incubation under any other scheme of Government of India or State Government are not eligible.
  • The institute, R&D institute, government, industrial enterprise will be set up with the assets to be built in the new plant centre.
  • Any entrepreneur interested in starting a business.
  • Any technical/research institute/university specially specializing in rural and agro based industries.
  • Production cooperatives and charitable trusts are examples of institutions registered under the Societies Registration Act of 1860.
  • Any private company operating under PPP model can set up LBI.
  • existing incubator.

Components of the Aspire Scheme

  • Setting up of Livelihood Business Incubators (LBIs) is the most important component of the Aspire scheme. LBI will be set up within National Small Industries Corporation (NSIC), KVIC, any other GOI or State Govt. These agencies will replicate the successful “Rapid Incubation Model” of NSIC.
  • Institutions NSIC, KVIC, Coir Board or any other institution / agency of Government of India / State Government can also set up Livelihood Incubation Center under PPP mode. Establishment under PPP mode will be with institutions, namely: NSIC, KVIC, or Coir Board, or any other institution/agency of Government of India/State Government.

Financing of Livelihood Business Incubators (LBI)

  • 100% of the cost of plant and machinery other than land and infrastructure or one-time grant of an amount up to Rs 100 lakh, whichever is less.
  • 50% of the cost of plant and machinery other than land and infrastructure or one-time grant of an amount up to Rs 50 lakh, whichever is less, is to be provided.
  • For incubation centers to be set up under PPP mode, the following funds should be provided.
  • For incubators under designated agencies, the following funding should be provided under the Aspire scheme.
  • The total budget of LBI is Rs 62.50 crore. To establish 80 lb capable of adequately skilling targeted 104000 youth over a period of three years.

Objectives of LBI under Aspire Scheme

  • Encouraging the development of new low-end technology/livelihood-based businesses.
  • To set up business incubators where deserving children can be effectively trained in various professions and provide them an opportunity to start their own business.
  • To provide entrepreneurship and skill development courses to all youth
  • To provide finance facility along with coaching and support to all the people to start their business.

Technology Business Incubator (TBI)

  • The key component under the Aspire scheme is the establishment of Technology Business Incubators (TBIs). Technology Business Incubators (TBIs) should be set up at two levels.
  • Setting up of Level 1 to support the incubation centers currently running under various agencies. All such agencies which are Ministries and Departments of the Government of India or Institutions of the Government of India/State Governments. Those centers will be dedicated to incubation and enterprise building in the field of agro-based industries.
  • A new incubation center will be set up on the second level. This center will be set up by e-government. Incubation centers will be promoted on the basis of region, crop, product, process and industry.
  •  Existing incubators under various ministries will need to be provided with built-up covered space with electricity and water connections. These incubators should also provide any additional forward or backward linkages. In addition, these incubators should provide the necessary staff resources for both existing and future incubator centers.

Funding of Technology Business Incubator (TBI)

  • For existing incubators for setting up of incubators in agro-based industries, the following funding should be provided.
  • A lump sum grant of the following should be provided for setting up new incubation centres.
  • 50% of the cost of plant and machinery other than land and infrastructure or an amount up to Rs.100 lakh whichever is less.
  • The accelerator workshop program will also assist in creation of new entrepreneurs and expansion of existing talent pool. The total budget for this category is Rs. 61.50 crore, which will be used to set up up to 30 TBL.

Objectives of TBI

Objectives of TBI - Eligibility Criteria for ASPIRE Scheme

  • Technology based incubators will be set up to develop creative ideas or technology in agro based industry.
  • Value Added: Provide incubates with value added services like technical, IPR, legal and financial.
  • To encourage formation of innovative technology businesses.
  • Technology Commercialization: To establish a platform for rapid commercialization of innovations developed in the host institution or any other academic or R&D institution in the country.
  • Interfacing and Networking: To connect financial institutions and business academia by networking.

Small Industries Development Bank of India (SIDBI)

  • The last important component under the ASPIRE scheme is to establish a framework for promoting start-ups through Small Industries Development Bank of India (SIDBI).
  • Such ideas should be converted into business venture results within a stipulated time frame. SIDBI set aside 60 crores for this purpose.
  • This should be done using innovative forms of finance such as equity, quasi-equity, angel funds, venture capital funds, impact funds, challenge funds and others. It should aim to enable ideas or innovations to emerge with creativity and scalability.

Benefits of Aspire Scheme

  • Agricultural techniques and their associated functions are being automated.
  • Adding value to agricultural and forest products.
  • Agricultural pre/post-harvest waste recycling, off-farm yet farm-bound animal husbandry, and so on.
  • Business models that create local jobs in rural locations, as well as business concepts that have social impact.

HOW TO APPLY FOR ASPIRE SCHEME

To take advantage of the ASPIRE scheme, you must first send an application to the Steering Committee of the Ministry of MSME. The Plan Steering Committee will be responsible for overall policy, coordination and management support. And its council will also be chaired by the Secretary, Ministry of MSME. However, to apply for assistance under the ASPIRE Scheme, the applicant must fulfill the eligibility criteria. In addition, the applicant has to provide documents regarding an existing business or an upcoming idea. Applicant can register for this scheme by visiting the official website.

Also Read : Documents Required for MSME Loan

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