Atal Incubation Centre guidelines: grant, rules, reporting
Under AIM's November 2023 guidelines, an Atal Incubation Centre can get a grant of up to Rs 5 crore, or up to Rs 10 crore with a sector lab, over five years. The applicant needs three years of existence and 5,000 to 10,000 sq ft of ready space, and private applicants must add 25% to 100% of the grant themselves.
By Akshay Kendurkar, CEO, MyStartupValley
An Atal Incubation Centre is one of the larger incubator grants the central government offers. The catch is in the conditions: who can apply, how much the applicant must put in, and how closely the centre is watched once the money arrives.
This guide reads the Atal Innovation Mission's rules and sets out what each one means for an institution thinking of applying. For how AIC numbers compare with other schemes, see our count of incubators in India by scheme.
What are the Atal Incubation Centre guidelines?
The Atal Incubation Centre guidelines are AIM's rules for funding new, greenfield incubators that support technology startups in core sectors such as manufacturing, health, energy, agriculture and water. The current version is dated November 2023 and covers eligibility, grant size, the applicant's own contribution, space, team, seed funding and reporting.
The full text is in the AIC guidelines of November 2023, linked from AIM's Atal Incubation Centres page. AIM sits within NITI Aayog and has an outlay of Rs 2,750 crore up to March 2028, according to a January 2026 government backgrounder.
A June 2026 backgrounder says 72 Atal Incubation Centres have supported over 6,700 startups and helped create more than 32,000 jobs.
Who can apply to set up an AIC?
Higher education institutions, R&D institutes, corporate sector entities, SEBI-registered alternative investment funds and business accelerators can apply. Each must be a legal entity, such as a society, trust, company or statutory body, with at least three years of existence at the close of the call for applications.
Non-government applicants face two money tests. They must not have made a loss in any of the previous three years, and their turnover must be at least the size of the grant they seek. AIM can relax this for social impact, strategic sectors, underserved regions or institutions of eminence.
Other conditions worth knowing:
- Focus: an AIC can have up to three primary sectors.
- Structure: non-government applicants must run the AIC through a separate special purpose vehicle, a section 8 or private limited company limited by shares.
- Ideal shape: the guidelines name a collaboration between a corporate entity and a research or academic institution as the ideal application.
How big is the AIC grant, and what must the applicant add?
AIM gives up to Rs 5 crore if the AIC sets up no lab, and up to Rs 10 crore if it sets up a sector-specific lab, to cover capital and operating costs over five years. Government applicants add nothing of their own. Private applicants must add between 25% and 100% of the grant, in cash.
| Applicant type | Own contribution required |
|---|---|
| Government academic or R&D | None |
| Government non-academic | None |
| Private academic | At least 25% of the AIM grant |
| Private non-academic | At least 100% of the AIM grant |
| Private R&D | At least 100% of the AIM grant |
Source: AIC guidelines, November 2023. The contribution must land in the AIC's own bank account before each tranche. In-kind items, money spent before sanction and equipment the host already owned do not count. A private non-academic applicant may count rent paid to an unrelated landlord, up to 20% of its contribution.
What space and team does an AIC need?
An AIC needs at least 10,000 sq ft of ready-to-use built-up space if it sets up a lab, or at least 5,000 sq ft without one, for its exclusive use. Leased space needs a lease of at least 10 years. It also needs a full-time CEO, chosen in consultation with AIM, before any money is released.
The guidelines are specific on people and pace:
- The CEO and team must be in place full time within 30 days of receiving the grant.
- A faculty member who keeps teaching cannot be the CEO.
- Within six months, the AIC must be fully running: space furnished, labs staffed, an incubation programme defined, at least two outreach events held and incubatees enrolled.
- Missing that deadline is a material breach. If it is not fixed within 60 days of notice, AIM can end the agreement and recover the whole grant.
The AIC grant is generous, but the clock starts on day one: a team in 30 days, a working incubator in six months.
How is AIC money released and spent?
AIM releases the grant in three or more annual tranches, through a central account from which the AIC gets drawing rights. Each tranche depends on satisfactory performance, proof of the applicant's cash contribution and compliance with financial rules. AIM can withhold drawing rights if performance falls short.
Land, buildings, vehicles and fees to consultants who prepare the application are not allowed as project costs. Of the grant, capital spending can take up to 35%, personnel up to 22.5% and seed support up to 10%. The AIC must keep separate bank accounts for operations and for seed funds.
Seed support to startups has its own rules. An AIC can invest up to Rs 12.5 lakh per startup as debt, convertible debt or equity, and AIM encourages equity. The seed money can be used only after the AIC raises an equal co-investment from non-government sources. AIM lets the AIC keep 15% of the yearly surplus the seed pool earns.
What must an AIC report to AIM?
An AIC updates its key performance indicators on AIM's monitoring system every month, sends a quarterly progress report to NITI Aayog, and submits audited accounts and utilisation certificates every six months, at each year end and with each request for a further tranche. AIM or a third-party agency can review it at any time.
Beyond reports, the AIC must have a website live within 30 days of the first tranche, credit AIM on all branding, and return interest earned on the grant each year. Any unspent balance is refunded within 30 days once six years have passed since the first instalment.
How does the Established Incubation Centre route differ?
The Established Incubation Centre scheme is for incubators that already exist and want to scale. AIM gives up to Rs 10 crore in two or more annual instalments over two years, to incubators registered in India and in operation for at least three years. Selection rests on track record, measured through KPIs.
The EIC guidelines of September 2019 shortlist applicants on startups supported and graduated, then ask for a presentation of the scale-up plan. An EIC can apply up to three times, and the AIC guidelines say a plain extension of an existing incubator belongs here. Its spending split differs: up to 35% on capital, 20% on personnel and 25% on seed support.
How do you apply for an Atal Incubation Centre?
Applications are online only, through AIM's AIC application portal during an open call, with clarifications by email to AIM. A Screening-cum-Selection Committee evaluates them, and selected applicants sign a Memorandum of Agreement and a bond with NITI Aayog that set the budget, goals and refund terms.
The evaluation criteria in the guidelines look at the host's ecosystem, the business and sustainability plan, the team, partners, location and the applicant's own contribution. AIM says it strongly discourages paying consultants to prepare applications. Our guide to starting an incubation centre in a college covers the groundwork, and DST's alternative is in our note on NIDHI-TBI guidelines.
Questions
How much grant does an Atal Incubation Centre get?
Under the November 2023 guidelines, AIM gives an AIC up to Rs 5 crore if it sets up no lab, and up to Rs 10 crore if it sets up a sector-specific lab. The grant covers capital and operating costs for five years and is released in tranches tied to performance.
Who can apply for an Atal Incubation Centre?
Higher education institutions, R&D institutes, corporate sector entities, SEBI-registered alternative investment funds and business accelerators can apply, if they are legal entities with at least three years of existence. Non-government applicants must not have made a loss in any of the previous three years.
What is the own contribution required for an AIC?
Government academic and non-academic applicants need no contribution of their own. Private academic applicants must bring at least 25% of the AIM grant, and private non-academic and private R&D applicants at least 100%, as cash in the AIC's account. In-kind or earlier contributions do not count.
What is the difference between an AIC and an EIC?
An AIC is a new greenfield incubator funded for up to five years. An Established Incubation Centre is an existing incubator, at least three years old, that gets up to Rs 10 crore of scale-up support over two years. AIM says a plain extension of an existing incubator should apply as an EIC.
Sources: Atal Innovation Mission, Guidelines for Setting up of Atal Incubation Centres, Nov 2023 · Atal Innovation Mission, Guidelines for Scale-up Support to Established Incubation Centres, Sep 2019 · Atal Innovation Mission, Atal Incubation Centres page (last updated 3 Jan 2024) · Press Information Bureau, Empowered Youth, Stronger Nation (backgrounder), 13 Jun 2026 · Press Information Bureau, A Decade of Startup India (backgrounder), 15 Jan 2026
For more on running an incubator in India, read the MyStartupValley blog or see MyStartupValley for incubators.