NIT-T’s CEDI all set to foster entrepreneurship
Funded to the tune of
Rs.1.55 crore under the TIDE scheme of the Union Ministry of ICT, CEDI
will see through setting up and strengthening Technology Incubation
Centres, nurturing Technology Entrepreneurship Development for
commercial exploitation of technologies developed by them, promoting
product oriented research and development, encouraging development of
indigenous products and packages, and bridging the gap between R&D
and commercialisation, thereby aligning education to market
requirements, according to G. Kannabiran, professor of Management and
Dean – Research and Consultancy. In the long run, the CEDI will bring
about indigenous development of products and packages in Electronics as
well as IT sectors, he said.
The NIT-T, he said, now
ranks among some of the leading institutions, including a few IITs, to
have a CEDI. At NIT-T, the CEDI has been started under Section 25 of the
Company’s Act with flexibility to support and benefit through
commercial activities. The CEDI’s support, he said, will reflect through
policy measures, creating appropriate frameworks, infrastructure
support, entrepreneurial- training and IPR facilitation.
The
centre networks with Angel Investors and Venture Capitalists (VCs) who
provide mentoring and financial support to the start-ups that will move
out after establishing themselves very well in the business venture. In
the initial two to three years, CEDI will provide operating space
(ready-to-use space for each entrepreneur, a common office facility with
Internet access, and a meeting room with audio-visual equipment) to the
selected companies, nurture them and mobilise technical, mentoring,
managerial, financial, legal and other support.
Companies
selected for incubation would get financial support, in the form of
soft loans of up to Rs.25 lakhs over two- three years period subject to
satisfactory performance. The sanctioned loan amount would be up to a
maximum of 80% of the project cost for procuring essential equipment and
consumables, subsistence allowance of the promoters, staff salaries and
other contingencies.
Towards the end of their
presence in CEDI, the company will have to return part of the financial
support given to the company as per CEDI’s policy and the remaining
amount can be paid as equity to CEDI, which can be en-cashed at the time
of valuation.
Selection of companies will be on the
basis of a detailed techno-commercial proposal, including a business
plan, submitted by prospective entrepreneurs. The business plan will be
evaluated on its technical merits and commercial viability by a
committee of experts. The CEDI would regularly monitor the progress of
the company, to determine conformity to strict time-lines. The first
batch of applications from entrepreneurs will be processed in September
2012. For more details, mail to kb@nitt.edu.
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