The Aspire Scheme for Rural Entrepreneurs – An overview

ASPIRE Scheme – In india if you are running a small enterprise then you have to register for the Udyog Aadhar Registration. It has been issued by the MSME Department of the Govt. Udyog aadhar main objective is to avail the govt benefits.

MSME Department from time to time brings many scheme for the betterment of Indian society. So Udyog aadhar Benefits is a superb gift from the Ministry of Micro Small and Medium Enterprises.

One such scheme is ASPIRE Scheme for the promotion of innovation, entrepreneurship, and Agro-Industry that is aimed at improving rural industries and creating new employment opportunities through entrepreneurship in rural areas. ASPIRE Fund has been launched by the Ministry of Micro Small and Medium Enterprises (MSME).

The fund was launched by the Union Minister of ‘Ministry of MSME’ Kalraj Mishra, and the fund is a fund of a corpus of Rs. 60 crore. The fund will be administered by the Small Industries Development Bank of India (SIDBI).

The three components of the scheme are-

(i) Setting up of Livelihood Business Incubators (LBI)

(ii) Setting up of Technology Business Incubators (TBI) at twin levels, i.e. supporting existing incubation centers and also new incubation centers to be set up by eligible institutions, and

(iii) To create a framework for Start-up promotion by using innovative means of finance.

Under ASPIRE, 80 Livelihood Business Incubation (LBI) centers are to be set up in which a total of 104000 incubates will be trained and 30 (10 new & 20 existing) Technology Business Incubation (TBI) centers will be open.

The main objectives of the ASPIRE scheme are to:

  • Create new jobs and reduce unemployment;
  • Promote entrepreneurship culture in India;
  • Grassroots economic development at the district level;
  • Facilitate innovative business solution for unmet social needs; and
  • Promote innovation to further strengthen the competitiveness of MSME sector.

A Rs.200 crore corpus for The ASPIRE Scheme fund has been set up, which will be used in following way :

  • Automation of agricultural practices and activities related thereto;
  • Value addition to agriculture and forest produce;
  • Recycling of agricultural pre/post-harvest wastages, off-farm but farm linked, animal husbandry etc.,
  • Business models for aggregation and value addition rent in rural areas;
  • Business models for social impact relevant for rural areas;
  • Business models for the creation of local employment.

How Rs.200 Crores ASPIRE Scheme Corpus will be utilized?

The Rs.200 crore corpus of the ASPIRE Scheme will be utilized as follows:-

A Beneficial Fund will be formulated under Small Industries Development Bank Of India (SIDBI) and Rs.60 Crores will be allotted for the same. SIDBI by means of finance like Equity, Quasi-Equity, Angel fund, Venture capital fund, Impact funds, Challenge funds etc. will have to enable ideas and innovation to be converted into a commercial enterprise.

Areas of focus for the fund with SIDBI will be a forward-backward linkage in the chain of manufacturing, service delivery and accelerator support for agro-based Industries.The incubation centers assistance will be of two types that is aiding existing incubation centers or setting up of dedicated incubation centers in the area of Agro-based Industries.

Plans have been made to support 20 existing incubation centers and Setting up of new incubation centers in the area of Agro-based Industry. Support would be provided for incubation of ideas at the Beginning stage, each idea would be provided financial support of Rs.3 lakh per idea to be paid up front to the incubator to development of  the idea.

The main objective of the Scheme is to set up business incubators to impart entrepreneurship, skill development training to youth, mentoring and hand-holding with facilitation for funding with a view to enable them to set up their own business enterprises and Government-owned Incubation Center. In case of an incubation center having Public-Private Partnership Model, Rs.50 lakh investment per incubation center is envisaged.