NIDHI PRAYAS 2.0: Prototype Grant up to ₹40 Lakh

You have an idea for a device. Maybe it's a low-cost sensor for farmers, or a medical tool that could cost a tenth of the imported version. The idea is solid. What you don't have is ₹8 lakh for components, a fab lab, and a year to build it.

This is where most hardware founders in India get stuck. Investors won't fund a sketch, and banks won't fund anything without collateral. NIDHI PRAYAS was set up by the government for exactly this stage, the messy space between "I have an idea" and "here's a working prototype."

Below, we answer the questions founders actually search for: what it is, how much you get, who qualifies, how the portal works and what the 2026 last date is.

What is NIDHI PRAYAS?

NIDHI PRAYAS is a prototyping grant from the Department of Science and Technology (DST), Government of India. It helps individual innovators and early-stage startups turn a science or technology idea into a working physical prototype.

The name is a mouthful. NIDHI stands for National Initiative for Developing and Harnessing Innovations, DST's umbrella programme for startups. PRAYAS stands for PRomotion and Acceleration of Young and Aspiring innovators and Startups.

It's a pre-incubation programme. In other words, it comes before you're ready for a regular incubator. You don't need a company, revenue or even a finished design to apply.

What is a NIDHI PRAYAS Centre?

DST doesn't hand out the money directly. It goes through selected incubators called PRAYAS Centres, and these are the places you actually apply to.

Under the new version there are two kinds:

PRAYAS Centre (PC): the main entry point. It supports technology-based ideas with grants of up to ₹20 lakh.
Advance PRAYAS Centre (APC): for deep-tech ideas that need more testing, specialised equipment and serious validation. Grants go up to ₹40 lakh.

Each centre has a fab lab called the DST NIDHI Maker Bhavan, with tools like 3D printers, CNC machines and PCB fabricators. It also offers co-working space, a pitching lounge, mentors and help with patents. As a selected innovator (the scheme calls you a "PRAYASEE"), you get access to all of it.

The national programme is managed by SINE, IIT Bombay. You can see the list of centres on the PRAYAS Centres page.

What is NIDHI PRAYAS 2.0, and what changed?

NIDHI PRAYAS 2.0 is the upgraded version of the scheme, with new guidelines released by DST in March 2026. The biggest changes for founders:

More money. Under PRAYAS 1.0 the grant went up to ₹10 lakh. Now it's up to ₹20 lakh at a PC and up to ₹40 lakh at an APC.
A deep-tech track. Advance PRAYAS Centres are new and built for harder, science-heavy problems.
A second shot for 1.0 grantees. If you got funding under PRAYAS 1.0, you can now apply again, but only at an APC, and your total across both versions can't cross ₹40 lakh.
Startups up to 5 years old can apply, as long as turnover has stayed under ₹1 crore a year.

How much is the NIDHI PRAYAS prototyping grant?

These are ceilings, not guaranteed amounts. The centre's PRAYAS Local Monitoring Committee (PLMC) decides your final figure based on your proposal.

A few more things worth knowing:

You get 15 months to build the prototype, with a possible 6-month extension.
The money comes in tranches tied to milestones, not all at once.
If you're working on it full-time with no other income, the committee can approve a sustenance allowance of up to 20% of your grant. So on a ₹20 lakh grant, up to ₹4 lakh can go towards keeping you afloat.
It's a grant. You don't repay what you spend on the project. You only return any money left unused.

Who is eligible for the NIDHI PRAYAS grant?

You can apply as an individual innovator (no company needed) or as an early-stage startup.

Everyone must:

Be an Indian citizen and at least 18 years old on the date of application.
Own the IP behind the idea, or have a licence to use it.
Be building a tangible, physical product grounded in science or technology, which can be made and tested within 15 months.
Be at the idea-to-MVP stage. If your product has already gone past MVP, you can't apply.
Not have received more than ₹40 lakh in total from government grant schemes.

Startups must also:

Have been incorporated in India no more than 5 years ago.
Have at least 51% of their shares held by Indian citizens.
Never have crossed ₹1 crore in turnover in any financial year.

Students and employees can apply too, but you'll need a No Objection Certificate (NOC) from your college, institute or employer. It must allow you to work on the project and confirm that the IP will belong to you.

Working in a team? Agree on one lead innovator. That person applies, and the money goes to their account.

Individual winners are encouraged to register as a DPIIT-recognised startup within 6 to 8 months of getting the grant.

What won't NIDHI PRAYAS fund?

This trips up a lot of people:

Pure software, apps, e-commerce and service businesses are not eligible.
Academic research or student internships aren't funded.
You can't take NIDHI PRAYAS and NIDHI-EIR for the same idea.

The good news: a product that mixes hardware and software, like an IoT device, is fine. The software just can't be the whole product.

Which sectors get priority?

DST lists energy and climate action, deep tech (quantum, robotics, space), hardware-based AI, medical devices, healthcare, digital agriculture, defence technology, assistive devices, manufacturing and technologies important for self-reliance. Other emerging areas are welcome too.

Preference may also go to women innovators, young innovators, founders with patents, and those who've bootstrapped or have co-investment lined up.

What is the NIDHI PRAYAS 2.0 portal?

The official site is nidhi-prayas.org, run by the programme's management unit at SINE, IIT Bombay. Applications and logins go through portal.nidhi-prayas.org.

The site has three pages you'll actually use:

For Innovators: eligibility, funding rules and a long FAQ.
PRAYAS Centres: the list of centres you can apply to.
Guidelines PDF: the full rulebook.

Innovators apply using a common application template on the portal, addressed to the centre they choose.

How do I apply for NIDHI PRAYAS 2.0?

Check you're eligible. Physical product, idea-to-MVP stage, Indian citizen, 18+. For startups: under 5 years old, turnover under ₹1 crore.
Pick the right level. Early-stage tech idea? Go to a PC. Serious deep-tech project? Go to an APC. Choose carefully. If an APC rejects you, you can't then apply to a PC under 2.0.
Choose a centre. Look for one whose focus areas match your idea, ideally close enough that you can work from its fab lab.
Watch for its call. Each centre opens applications on its own timeline.
Apply through the portal with your proposal, budget and milestones.
Pitch to the committee. The centre screens applications, and the PLMC, a panel of technical experts, investors, industry people and a DST observer, makes the final call.
Sign the grant agreement and start building. Funds are released in tranches as you hit milestones.

There's no fee to apply, and the centre can't charge you for support that falls under the scheme.

Where can I find the NIDHI PRAYAS guidelines?

The official NIDHI PRAYAS 2.0 Program Guidelines (March 2026) are on both the NIDHI PRAYAS website and DST's NIDHI site. Read section 5.4 before you apply. It covers eligibility, what the money can be used for, and project duration.

What is the NIDHI PRAYAS last date to apply in 2026?

There is no single national last date for innovators. This is the most common confusion, so here's how it works.

The 2026 window you may have seen, 19 May to 30 June 2026, was for incubators applying to become PRAYAS Centres under 2.0. It wasn't for founders.

As a founder, you apply to a specific PRAYAS Centre, and each centre announces its own call with its own last date. So the right move is:

Shortlist two or three centres from the official list.
Follow their websites and LinkedIn pages for announcements.
Get your proposal ready now, so you're not writing it in a rush when a call opens.

We'll update this page as centres announce their 2026–27 calls.

What documents should I keep ready?

Proof of age and Indian citizenship (passport, Aadhaar or Voter ID)
Your proposal: problem, solution, technical approach, 15-month milestones and budget
Proof that you own the IP or have a licence to use it (patent filings help)
NOC from your employer or college, if you're employed or a full-time student
Team agreement naming the lead innovator, if you're applying as a team
For startups: incorporation certificate and shareholding pattern
An undertaking listing all earlier funding, from government schemes and private sources, including any NIDHI PRAYAS 1.0 money

Your chosen centre may ask for more, so check its call notice.

What can the grant money be spent on?

The grant can cover:

Raw materials, components and consumables
Fabrication and outsourced design, engineering, testing or expert work
Field tests, pilot deployments, clinical trials and durability testing
Patent filing costs, including international (PCT) filings
Business travel and event fees, up to 10% of the grant
A sustenance allowance, up to 20%, if the committee approves it

It can't be used to repay old loans, pay the incubator's usage charges, pay rent on your own home or build infrastructure like a shed.

Does the PRAYAS Centre take equity or my IP?

No. The rules are clear on this. The IP you create stays with you or your startup, and the centre can't ask for equity or IP in exchange for the grant, the fab lab or any other scheme support. If you ever sign a separate deal with the incubator, it has to say in writing that it has nothing to do with the NIDHI PRAYAS grant.

Can I apply for a software or app idea?

Not for pure software. Apps, SaaS, e-commerce and service businesses are excluded. A product with both hardware and software, like a smart device with its own app, can qualify.

Can a college student apply?

Yes, if you're 18 or older and can get an NOC from your college. You also need to understand the technology yourself. A parent or friend can't apply on your behalf.

Can I apply again if I got funding under PRAYAS 1.0?

Yes, but only at an Advance PRAYAS Centre, and only for a deep-tech or advanced prototype. Your combined funding across 1.0 and 2.0 can't go over ₹40 lakh.

Do I need a registered company?

No. Individuals can apply. A sole proprietorship counts as an individual application. If you win, you're encouraged to register a DPIIT-recognised startup within 6 to 8 months.

Tips to improve your chances

Start at a PC unless you're truly deep tech. An APC rejection blocks you from PCs under 2.0. A PC grant, on the other hand, lets you go to an APC later for the balance.
Pick a centre that matches your field. A centre with medical device expertise will judge a health device better than a general incubator, and its fab lab will have the right equipment.
Write milestones you can actually hit. Money is released milestone by milestone. "Working sensor module by month 4, field trial with 20 farmers by month 10" is far stronger than "complete prototype."
Show how it leads to a business. The scheme expects a commercialisation roadmap, not just a cool device.
File a patent early if you can. Patent holders are on the preference list, and patent costs can come out of the grant anyway.

Final word

For hardware founders, NIDHI PRAYAS is one of the most generous starting points in India. Up to ₹20 lakh, or ₹40 lakh for deep tech. No equity, no repayment on what you spend, and a fab lab thrown in. The catch is timing: there's no single deadline, so the founders who win are usually the ones who had their proposal ready before the call went out.

Scheme rules, amounts and deadlines can change without notice. Check the latest guidelines on the official portal before you apply. Startup India Grants is not affiliated with any government body.

Sources

Scheme rules, amounts and deadlines can change without notice. Check the latest guidelines on the official portal before you apply. Startup India Grants is not affiliated with any government body.