Introduction & Description

Scheme for iDEX-Innovations for Defence Excellence with budgetary support of Rs. 498.78 crore for a period of 5 years from 2021-22 to 2025-26 was launched in May 2021 with an objective to provide financial support to nearly 300 Startups/ MSMEs/individual innovators and about 20 Partner incubators through Defence Innovation Organisation (DIO). iDEX provides grants up to Rs. 1.50 Cr (up to Rs. 10 Cr in case of iDEX Prime) to the Start-ups/MSMEs to fund the projects in many technological areas under Defence India Start-up Challenges (DISC) and Open Challenge through the Support for Prototype and Research Kick start (SPARK Framework).

The iDEX scheme, besides fostering innovation and technology development, is also a path to procurement for the Armed Forces as per the Defence Acquisition Procedure 2020 which states that procurement through Innovative solutions could be undertaken under following programmes: -

(a) Innovations for Defence Excellence (iDEX).: Projects of Start-ups, MSMEs etc. with low capital investments and high innovation would be pursued under the iDEX category.

(b) Technology Development Fund (TDF) Scheme. Projects supported through TDF of DRDO for leveraging the domestic capabilities available with Indian Industries especially MSMEs including Start-ups.

iDEX is being funded and managed by a ‘Defence Innovation Organization (DIO)’ which has been formed under the aegis of Department of Defence Production, Ministry of Defence, Government of India, as a ‘not for profit’ company as per Section 8 of the Companies Act 2013 for this purpose, by the two founder members i.e. Defence Public Sector Undertakings (DPSUs) - Hindustan Aeronautics Limited (HAL) & Bharat Electronics Limited (BEL). IDEX is functioning as the executive arm of DIO, carrying out all the required activities while DIO will provide high level policy guidance to iDEX.

iDEX aims at creating an ecosystem to foster innovation and technology development in Defence and Aerospace by engaging Industries including MSMEs, start-ups, individual innovators, R&D institutes & academia. It will provide them with grants/fundings and other necessary support to carry out R&D which has potential for future adoption for Indian Defence and aerospace needs.

Achieving the goal of self - sufficiency for the Indian military will require a means to incorporate innovation rapidly in the weapons procurement process. iDEX will function as the executive arm of DIO, carrying out all the required activities while DIO will provide high level policy guidance to iDEX.

Objectives

The scheme has following objectives:-

DIO supports tech-driven firms to create, deploy and commercialize technologies for the Indian Armed Forces, Defence Public Sector Undertakings (DPSUs) & other Govt. Establishments through Defence India Startup Challenges (DISC) and Open Challenges (OC) by providing a SPARK (Support for Prototype and Research Kickstart) grant upto Rs. 1.5 Crore (The grant amount is upto Rs. 10 Crore under iDEX Prime cases)

IDeX provides following benefits:

• SPARK (Support for Prototype and Research Kickstart) Grant: iDEX provides grants up to Rs. 1.50 Cr (up to Rs. 10 Cr in case of iDEX Prime) to the start-ups/MSMEs to fund the projects in many technological areas under Defence India Start-up Challenges (DISC) and Open Challenge through the Support for Prototype and Research Kick start (SPARK Framework)
• Partner Incubators Support to iDEX winners:-
  • Partner Incubator will provide mentorship to startups/MSMEs selected by iDEX-DIO.
  • Partner Incubator will run programs like accelerators, incubation, etc. to strengthen selected startups/MSMEs beneficial for the Indian defence sector.
  • Partner Incubator will undertake initiatives to reach out, spread awareness and promote innovations for defence among students/ researchers at all levels in academia
• The major benefits from iDEX Scheme to Indian Defence Innovation Ecosystem are:-
  • Facilitate rapid development of new, indigenized, and innovative technologies for the Indian defence and aerospace sector, to meet needs for these sectors in shorter timelines.
  • Create a culture of engagement with innovative startups, to encourage co-creation for defence and aerospace sectors.
  • Empower a culture of technology co-creation and co-innovation within the defence and aerospace sectors.

Eligibility:

Eligible Organisations/ Beneficiaries to avail the grants under Support for Prototype and Research Kickstart (SPARK), the eligibility is as follows:

• Startups, as defined and recognized by Department of Industrial Policy Promotion (DIPP), Ministry of Commerce and Industry, Government of India.
• Any Indian company incorporated under the Companies Act 1956/2013,primarily a Micro, Small and Medium Enterprises (MSME) as defined in the MSME Act, 2006.
• Individual innovators are also encouraged to apply (research & academic institutions can use this category to apply), however they are supposed to form a Start-up before signing the SPARK Grant Agreement.