ASPIRE Scheme

Promoted by the Ministry of Micro, Small and Medium Enterprise (MoMSME), A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE) is an initiative by the Government of India. The ASPIRE scheme was introduced to setup network centres and incubation centres to enhance entrepreneurship across the nation. This scheme was also introduced to start new jobs and promote Startup enterprises for innovation in the traditional and agro industries.

As per the Union Budget 2019-2020 presented by the Finance Minister Nirmala Sitharaman, 80 livelihood businesses and 20 technology business incubators will be set up that shall produce approx. 75,000 skilled entrepreneurs in the agro-rural industries.

Further listed below are key objectives, purpose and components of ASPIRE scheme:

Objectives of ASPIRE Scheme

• To create more job opportunities and reduce unemployment
• To promote economic development at district level, as well
• To promote entrepreneurship culture across the nation
• To facilitate innovative business solutions for unfulfilled social needs; and
• To promote innovation to further strengthen the competitiveness of the MSME sector

Purpose of ASPIRE Scheme

ASPIRE Scheme was launched for various purposes that are as follows:

• For the purpose of value addition to agriculture and forest produce
• For the automation of agricultural practices and related activities
• For the recycling of agricultural pre/post-harvest wastages, off farm but farm linked, animal husbandry etc.

ASPIRE scheme fund can also be used for some business models that can be used for various purposes like mentioned below:

• For aggregation and value addition relevant for rural areas;
• For creation of local employment in rural areas; and
• For social impact and much more

Components of ASPIRE

• Livelihood Business Incubators (LBI)
• Technology Business Incubators (TBI)
• A fund to be managed by Small Industries Development Bank of India (SIDBI)

These components are funds to be managed by SIDBI, Coir, Khadi industries, etc. as these projects are prominent means of livelihood for millions of Indians. LBI main objective is to create employment at local level and reduce unemployment. TBI is more concerned with increase in centres in building up technology network. SIDBI plays a vital role in managing ASPIRE as a whole and providing support to other components and helping in generating income of people by increasing employment opportunities.

Also Read: How to register an MSME online?

Grant Funding for Setting up Incubation Centres

If in case the incubation centres are to be set up under PPP mode with Coir board, NSIC or KVIC then one-time grant of 50% of the cost of plant and machinery other than land and infrastructure or Rs. 50 lakh to be provided, whichever is less.

ASPIRE Funding – Union Budget 2014-15

Recognizing the vast potential of advanced enterprises and the agro-based industries in the MSME sector, India’s Finance Minister in the Budget Speech 2014-15, delivered in the Parliament on 10-07-2014, said:

“To Establish Technology Centre Network to promote Innovation, Entrepreneurship and Agro-Industry, I propose to set up a fund with a corpus of Rs. 200 crore.”

Funding Division of Total Allocated Funding for ASPIRE

Item	Amount
Creation, updation and maintenance of database of the Technology Centres network	Rs. 2 crore
Capacity Building, including Engagement of Consultants, Awards, Surveys, Studies, Exposure Visits, including Monitoring and Evaluation, etc.	Rs. 17.75 crore
Fund for setting up of Incubation Centres by NSIC, KVIC, Coir Board/Any other Institution, Agency of Govt. of India, State Govt.	Rs. 62.50 crore
Fund for setting up of Technology Incubation Centres	Rs. 61.50 crore
Administrative cost @ 10% of the item under (3A) above	Rs. 6.25 crore
Fund of Funds for Start-Ups to be managed by SIDBI	Rs. 60 crore
Total	Rs. 210 Crore

Source: nsic.co.in

Also Read: Which banks are giving Mudra loan?

FAQs on ASPIRE Scheme

Q. How can I apply for funding under ASPIRE?

Ans. You can apply by sending a formal proposal to the Member Convener, Scheme Steering Committee, ASPIRE, Office of the Joint Secretary (ARI Division) at the below address:

Ministry of MSME, Room no. 171, Udyog Bhawan, New Delhi – 110011.

Q. Who can provide me the details of this scheme?

Ans. All the necessary information on ASPIRE is available on the official website of NSIC i.e. www.nsic.co.in, as well as on the website of Ministry of MSME i.e. www.msme.gov.in.

Q. Can I utilize the grants for other fixed assets?

Ans. The funding allotted under this scheme can only be utilised towards procurement of plant and machinery items.

Q. What is the total amount of budget allocated by MoMSME for the ASPIRE scheme?

Ans. The amount of Rs. 200 crore was allocated for this scheme by the Government of India, under MoMSME.