PRISM Scheme

The PRISM Scheme is a Department of Scientific and Industrial Research (DSIR) project. Its goal is to turn an individual innovator into a successful technopreneur by advocating, supporting, and sponsoring societal breakthroughs that are both implementable and commercially feasible. DSIR provides technical, strategic, and financial aid to an Indian inventor – student, professional or ordinary citizen – for idea creation, prototype development, pilot scaling, and patenting. The programme is being implemented in a variety of areas, including energy, healthcare, waste management, and so on.

What Is the PRISM Scheme?

The ‘Technopreneur Promotion Programme’ (TePP) was established in 1998-99 to foster technological advancement. This programme has been renamed as Promoting Innovations in Individuals, Start-ups, and MSME (PRISM) programme. It is a programme of the Government of India’s Ministry of Science and Technology to promote and encourage entrepreneurs in order to develop individual innovations into successful technopreneurial ventures. This programme was created to provide financial support to young student innovators. This plan may also apply to autonomous organisations or societies, such as government-funded institutions and organisations that are registered under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 that are engaged in technology research. 

Two phases of the scheme

The PRISM scheme runs in two phases. The first phase is for Indian students, Indian citizens, and innovators. 

Phase 1: This phase is for innovators with business concepts that can be turned into successful start-ups.

Phase 2: The PRISM programme’s second phase is for innovators or ideas that have successfully established proof of concept with the help of the government, an institution, or another entity. Even publicly sponsored research and development initiatives that involve autonomous institutions, laboratories or academic institutions are eligible.

What are the focus areas of PRISM? 

While the scheme is open for all technology projects and start-ups, there is a preference for certain thrust areas. These are:

•         Green technology 
•         Clean energy 
•         Industrially utilisable smart materials 
•         Waste to wealth 
•         Affordable healthcare 
•         Water and sewage management 
•         Any other technology in a knowledge-intensive area 

Who is eligible?

Any Indian citizen with a creative or innovative idea who wants to turn it into a working model, prototype, or process; public-funded organisations involved in the promotion of innovation, such as independent societies or organisations registered under the Societies Registration Act, 1860/Indian Trusts Act, 1882.

Nature of funding grant available for eligible start-ups

PRISM Phase 1 Projects

For deciding the nature of funding available, the Phase 1 projects are further divided into two categories.

Category 1 projects – start-ups having a proof of concept, prototype or model with a project costing up to Rs 5 lakhs can get up to Rs 2 lakhs, subject to 90% of the total project cost.

Category 2 projects – a maximum of Rs 20 lakhs can be obtained for projects that are slightly more advanced than category 1 and have a working model, process knowhow, testing and trials, patenting technologies, and knowledge transfer with project costs ranging from Rs 5 lakhs to Rs 35 lakhs.

Eligibility for Phase 1 – Any Indian citizen, especially student inventors, can receive assistance in developing their original concept into demonstrable model prototypes.

PRISM Phase 2 Projects

Financial help of up to Rs 50 lakhs, subject to 50 percent of the overall project cost, can be obtained for initiatives classified in Phase 2 of the scheme, enterprise incubation costing anywhere between Rs 35 lakhs and Rs 1 crore.

Up to Rs 50 lakhs or 50% of the total project cost is available for developing technology solutions aimed at aiding MSME clusters.

Phase 2  -Eligibility for PRISM innovators who have demonstrated proof of concept with the aid of other government agencies or institutes.

Any R&D institute, including private institutions, government-funded labs, academic institutions, and so on.

What are the benefits for startups?

1. The scheme’s strongest point is that it differs from most other loan assistance programmes for startups. The Ministry of Science and Technology awards the grant-in-aid. Additionally, this grant can be used to develop prototypes and commercialise the project.
2. The evaluations and technical and financial viability studies assisted by the government can help a tech startup identify key areas that need improvement.
3. The PRISM scheme also envisages helping innovators to get their fundamentals of patenting in order. 
4. The experts also guide startups in technical and strategic assistance for the commercialisation of the project, right from the stage of idea development.
5. With the rise of programmes such as Startup India, Make in India, and Digital India, the necessity of innovation in the technology area has been re-emphasised, especially because it underpins practically every other business and industry. As a result, the PRISM plan aims to encourage this spirit of innovation.

Conclusion

Individual innovators who are looking for grants, professional support, and mentoring to help them incubate their ideas and start new businesses in stages would benefit from this programme. It helps in offering assistance to technology service providers that are developing technical solutions to aid the MSME sector. A start-up idea, prototype or concept in these areas is more likely to be considered for funding by the Ministry of Science and Technology on a priority basis. In the event that beneficiaries abandon the project, innovators must refund the money given, at 12% interest to  DSIR.