Previous Year Question
With reference to the programme “NIDHI” which of the following statement(s) is/are correct?
The programme of “NIDHI” was started for students to begin start ups.
Its aim is to financially support 20 students for start up in each year.
Select the correct answer from the codes given below:
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Correct Answer: C
Detailed Solution
Statement 1 is correct. NIDHI (National Initiative for Developing and Harnessing Innovations) was introduced in 2016 by the Department of Science and Technology (DST). Its objective was to transform innovative ideas of students and young innovators into successful startups and promote technology-based entrepreneurship in India. The programme was implemented through the National Science and Technology Entrepreneurship Development Board (NSTEDB).
Statement 2 is also correct. Under the NIDHI programme, the Startup-NIDHI component aimed to provide financial assistance to 20 student startups annually. Each selected startup was eligible for an initial financial assistance of up to ₹10 lakh as an Ignition Grant. The objective was to transform student innovations into commercially viable products and enterprises.
Under Startup-NIDHI, financial support was designed for student startups associated with Innovation and Entrepreneurship Development Centres (IEDCs) and New Generation Innovation and Entrepreneurship Development Centres (NewGen IEDCs). Eligible startups were to be selected through a national-level competition. The funding mechanism provided for the release of 70% of the assistance upon selection and the remaining 30% upon achieving specified milestones.
NIDHI is a comprehensive entrepreneurship promotion programme, with major components including NIDHI-PRAYAS, NIDHI-EIR, NIDHI-TBI, and the NIDHI-Seed Support System. NIDHI-PRAYAS focuses on converting innovative ideas into prototypes, NIDHI-EIR supports aspiring entrepreneurs, and NIDHI-TBI promotes the development of technology-based startups. Thus, the annual target of supporting 20 startups mentioned in the question specifically relates to the Startup-NIDHI component.