What NIDHI Prayas is
Prayas sits one step before a seed grant like SISFS. The idea is simple. Most hardware ideas die between a sketch and a working model because the founder cannot fund the first build. Prayas pays for that build, up to ₹10 lakh, so you have something real to show investors and bigger schemes.
You do not apply to DST directly. You apply through a NIDHI PRAYAS Centre, which is hosted at an IIT, NIT, or an established incubator. The centre reviews your idea, releases the grant in stages, and gives you bench space and mentoring while you build.
Who can apply
- Indian citizen, 18 or older.
- An individual innovator with no company yet, or the founder of a startup under two years old with turnover below ₹25 lakh since inception.
- A basic science or engineering background. A full-time undergraduate or postgraduate degree is the usual bar.
- You hold the IP, or have the right to use any third-party IP in the prototype.
The rule that catches people out
Prayas funds physical products. Hardware, devices, machines, lab work. Pure software, an app, an e-commerce site, or a services idea does not qualify. If your product is a mobile app, this is the wrong scheme. Look at SISFS or a state grant instead.
Priority areas include manufacturing, agriculture, healthcare, clean energy, water, and IoT. A prototype you can realistically finish within about 18 months is what the centres want to see.
What you can spend it on
The grant covers the cost of building the prototype: raw materials, components, fabrication, lab charges, testing, and small equipment. It is not a salary. It pays for the thing you are making, not for you to live on while you make it.
How to apply, step by step
Step 1, find your nearest PRAYAS Centre
The list of approved centres is on the DST NIDHI portal at nidhi.dst.gov.in. Pick one that runs in your region and handles your kind of product.
Step 2, submit your prototype proposal
Each centre has its own form, but they all ask the same things: the problem, your proposed device, why it is better than what exists, a bill of materials, and a build timeline.
Step 3, review and selection
A committee at the centre screens proposals and shortlists innovators for a short pitch. Bring a sketch, a parts list, and any early testing you have done.
Step 4, build in tranches
Once selected, the grant is released in stages against milestones. Hit the milestone, get the next tranche. You build at or alongside the centre with access to their workshop.
What comes after Prayas
Prayas is a stepping stone. A working prototype makes you a far stronger candidate for the bigger non-dilutive money:
- SISFS, up to ₹50 lakh through approved incubators. See our SISFS guide.
- NIDHI EIR, a stipend for full-time founders at incubators.
- BIRAC grants, if your product is biotech or health.
- State grants in Kerala, Karnataka, or Tamil Nadu that can stack on top.
Common questions
How much does NIDHI Prayas give?
Up to ₹10 lakh as a grant to build a prototype. It takes no equity.
Can I use it for a software or app idea?
No. Prayas funds physical products and hardware. Apps, e-commerce, and services do not qualify. Look at SISFS or a state grant instead.
Do I need a registered company?
Not necessarily. An individual innovator with no company can apply, as can a founder of a startup under two years old with turnover below ₹25 lakh.
Where do I apply?
Through a NIDHI PRAYAS Centre hosted at an IIT, NIT, or incubator, not directly to DST. Find the list at nidhi.dst.gov.in.
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