Centre for Entrepreneurship Development and Incubation
Recognizing the importance of Technology Incubation, many institutions of higher learning have already taken initiatives to nurture this activity. These include policy measures, infrastructure support, entrepreneurial training, IPR facilitation, and create a framework to nurture technology incubation.
Centre for Entrepreneurship Development and Incubation (CEDI), a Section 25 company, is set up under the aegis of Ministry of Communication & Information Technology, Govt. of India to promote innovation and entrepreneurship by converting and translating technology ideas and innovation in various disciplines of science and engineering into products, processes and services for commercial exploitation and the benefit of society. To accomplish its goal, CEDI runs and manages a Business Incubator (BI) at National Institute of Technology, Tiruchirappalli (NITT) to facilitate incubation of new enterprises with innovative technologies. The centre will identify innovative entrepreneurs for funding through the TIDE scheme promoted by Department of Electronics and Information Technology, Govt. of India. All the necessary mentoring and support for mobilizing funds, creating access to markets, augmenting managerial skills etc., will be provided by the CEDI centre. CEDI will facilitate the incubatee companies to access NITT’s common Infrastructure facilities, departmental laboratories and other resources of NITT for their products development purposes
The centre also network with Angel Investors and Venture Capitalists who provide mentoring and financial support to the start up companies and enable the tenant companies to mature over a period of 2-3 years and graduate to a commercial place to do the actual business. The involvement of the faculty of the institute in the technology start-up activity reinforces teaching and research, strengthens linkages between education and industry, and also better aligns education to meet market requirements.
About the Project – TIDE:
At Present, CEDI is implementing a project Technological Incubation and Development of Entrepreneurs (TIDE) funded by Department of Electronics and Information Technology, Ministry of Communications & Information Technology, Govt. of India aims to assist Institutions of Higher learning to strengthen their Technology Incubation Centres and thus enable young entrepreneurs to initiate technology start up companies for commercial exploitation of technologies developed by them in the areas of ICT and Electronics. The objectives of the proposed scheme are:
- Promote product oriented research and development
- Encourage and accelerate development of indigenous products and packages
- Bridge the gap between R&D and commercialisation.
Each company selected for incubation would get financial support, in the form of soft loan, of up-to Rs. 25 lakhs over two (or three) years period. The amount of loan would be up to a maximum of 80% of the project cost of the incubating company. The loan can be used for equipment and consumables , manpower and other contingencies. At the end of two (or three) years, the company will have to return half of the financial support given to the company as per institute’s policy and the remaining 50% can be given as equity to the CEDI, which can be en-cashed at the time of valuation. So far 2 Companies have been incubated with a Total Financial support of Rs.50 Lakhs