NIDHI TBI guidelines: who can apply and what DST funds

A technology business incubator needs three things before it can help a single startup: space, equipment and a team that is paid every month. DST's NIDHI-TBI scheme pays for much of all three, for five years, and then expects the incubator to stand on its own.

This guide reads the official guidelines line by line: who can host a NIDHI-TBI, what DST pays, how the money is released, what you must report, and where proposals stall. For where NIDHI sits among the other schemes, see our count of incubators in India by scheme.

What are the NIDHI-TBI guidelines?

The NIDHI-TBI guidelines are the Department of Science and Technology's rules for setting up and funding technology business incubators, mainly in and around academic, technical and management institutions. They cover host eligibility, the proposal format, funding caps, the release of money and the reports DST expects in return.

NIDHI-TBI is one part of NIDHI, DST's umbrella programme launched in 2016. A government backgrounder of January 2026 says NIDHI has backed 175+ technology business incubators and supported 12,000+ startups.

The rules sit in one document, the NIDHI-TBI guidelines and proposal proforma, linked from DST's NIDHI-TBI page. The funding norms inside it say they are suggestive, and a national committee can relax them case by case.

Who can apply to host a NIDHI-TBI?

An academic, technical or R&D institution can apply as the host, as can other institutions with a proven record of promoting technology entrepreneurship. The incubator itself must be a not-for-profit society, trust or section 8 company, and the host must have existed for at least three years.

The guidelines add some conditions that catch applicants out:

• No for-profit incubators. DST says plainly that it does not support them at present.
• Non-academic hosts must be legal entities registered in India to promote research and entrepreneurship, and a partnership with a reputed academic institute or existing incubator is desirable.
• The three-year rule does not apply to bodies created by the central or state governments.
• Pure R&D or consultancy proposals are not eligible.

Current focus areas listed are manufacturing, agriculture, healthcare, clean-tech, energy, water and the Internet of Things.

How much does DST fund a NIDHI-TBI?

The funding norms suggest a total project cost of Rs 1750 lakh over five years. DST's share is capped at Rs 1500 lakh (Rs 15 crore) for public institutions and Rs 1150 lakh (Rs 11.5 crore) for other hosts. The difference sits in the one-time costs, where publicly funded institutes such as IITs and NITs can get full support.

Cost head (Rs lakh)	Suggested cost	DST cap, public	DST cap, other hosts
Renovation and furnishing	120	120	50
Thrust area equipment	500	500	300
Design, dies and development rooms, fab lab	100	100	50
Office equipment	50	50	30
Contingencies	30	30	20
One-time total	800	800	450
Recurring, five years	950	700	700
Total	1750	1500	1150

Source: funding guidelines in the NIDHI-TBI document. Land and building are never part of the project cost; the host provides them. DST's grant toward the CEO's salary is capped at Rs 1.75 lakh a month, a limit set in 2016-17 that the guidelines say rises 10% a year.

How are NIDHI-TBI funds released?

No money moves until the host meets four conditions: register the incubator as a not-for-profit entity, open a separate interest-bearing bank account in its name, earmark at least 20,000 sq ft of furnished space, and commit that space on a lease of at least 30 years. After that, DST releases grants year by year.

Recurring costs follow a fixed taper, applied to actual spending:

1. Years one and two: DST pays 100%.
2. Year three: 80%.
3. Year four: 60%.
4. Year five: 40%, after which DST support ends.

Equipment timing depends on focus. A sector-specific incubator can get equipment support in the first year; a sector-agnostic one only after 4 to 5 incubatees are in place or a year of operation. Before any grant, the incubator registers on PFMS and signs a bond on non-judicial stamp paper.

A NIDHI-TBI grant buys an incubator five years of runway. The host pays for every year after that, so the sustainability plan is the real test.

What must a NIDHI-TBI report to DST?

Every year, and whenever it asks for the next instalment, a NIDHI-TBI sends DST a progress report, an audited statement of accounts for the grant and a utilisation certificate. Continued funding is entirely performance based: a national expert committee reviews each incubator every year and can end support midway.

The other standing duties in the guidelines:

• A governing body chaired by the head of the host meets every six months.
• A website listing incubatees, updated at least quarterly.
• Interest earned on the grant is reported and remitted to the Consolidated Fund of India.
• Problems such as too few incubatees or missed targets are reported early, with an action plan.
• Unspent money is refunded, and assets bought with the grant stay in the incubator's premises.

Non-performance can mean discontinued support and a refund of unspent grant. The guidelines expect the incubator to be self-sustaining at the end of five years.

Why do NIDHI-TBI applications stumble?

Most stalled proposals fail on eligibility or preparation rather than merit. The guidelines say incomplete proposals, or those that miss the eligibility criteria, will not be considered, and the proforma warns that incomplete forms are liable to be rejected. Space, legal form and sustainability are the usual gaps.

Read against the guidelines, the common failure points are:

1. The wrong entity. A for-profit company, or a host under three years old.
2. Too little space, or a lease shorter than 30 years.
3. A research project in disguise. Pure R&D or consultancy is out.
4. No full-time CEO plan. DST wants a dedicated CEO and team, picked by a committee that includes a DST nominee.
5. A thin plan for year six. The proforma asks how the incubator will pay its way once DST support stops.
6. Missed timing. The national committee meets at least twice a year, and a proposal must arrive a month before a meeting to be placed before it.

One more check: the older document describes proposals sent by post, while DST's current page says calls for proposals run through its e-PMS portal. Follow the live call. Our guide to starting an incubation centre in a college covers the groundwork before you apply.

How do startups get into a NIDHI-TBI?

Startups apply directly to a NIDHI-TBI, not to DST. Each incubator runs its own periodic calls and admits incubatees through a transparent selection system set out in the guidelines, then signs an agreement that defines the residency period and exit policy. A NIDHI-TBI is expected to hold at least 30 ventures at a time.

Seed money is a separate step. An incubator can apply to DST's NIDHI Seed Support Program once at least five incubatees are in place. That page puts the cap at Rs 1000 lakh for an incubator and Rs 100 lakh for a startup. For other routes, see how the Startup India Seed Fund Scheme reaches startups through incubators.

Questions

Who can apply for a NIDHI-TBI?

An academic, technical or R&D institution, or another body with a record of promoting technology entrepreneurship, can apply as the host. The incubator must be a not-for-profit society, trust or section 8 company, and the host must have existed for at least three years, unless the government created it.

How much funding does DST give a NIDHI-TBI?

The NIDHI-TBI funding guidelines suggest a project cost of Rs 1750 lakh, with DST support capped at Rs 1500 lakh for public institutions and Rs 1150 lakh for other hosts. The money covers fit-out, equipment and five years of recurring costs, at a falling share each year.

How is NIDHI-TBI money released?

Funds flow only after the host registers the incubator, opens a separate interest-bearing account, earmarks the space and signs a bond. DST then pays recurring costs at 100% in the first two years, 80% in year three, 60% in year four and 40% in year five, each year subject to performance.

What reports does a NIDHI-TBI owe DST?

At the end of each financial year, and when it seeks a further instalment, the incubator sends a progress report, an audited statement of accounts and a utilisation certificate. Its governing body meets every six months, and it must keep a website listing incubatees, updated at least quarterly.

Sources: DST, NIDHI-TBI Guidelines and Proforma for Submission of Proposal (PDF uploaded Sep 2023) · DST, NIDHI-TBI page (last updated 14 Feb 2025) · DST, NIDHI Seed Support Program page (last updated 9 Sep 2025) · 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.