Multiplier Grants Scheme (MGS)

The Department of Electronics and Information Technology (DeitY) implements the Multiplier Grants Scheme (MGS) to support business-related innovations. It serves as a link between academic research and industry commercialisation. MGS aims to assist entrepreneurs in establishing startups and to promote research and development (R&D) within academic institutions.  

Businesses rely on strong R&D to develop innovative products, but this process can be expensive. Additionally, the presence of global products can affect sales of local products. MGS addresses this issue by providing financial assistance to industries investing in R&D.

Under this scheme, the government supports academic and R&D institutions by matching industry contributions with financial aid. Eligible organisations and startups can use the grant to cover project expenses, including salaries, travel, materials, and equipment.

MGS follows a structured process to ensure industry-led research projects receive the necessary support. Proposals must align with sectoral needs and demonstrate innovation, feasibility, and market relevance.

Project Proposal Submission under MGS

For collaborative research, the concept needs to originate from an industry or industry consortium. Academic institutions or R&D bodies conducting industry-specific research have to submit a joint proposal with the industry under the Multiplier Grants Scheme (MGS) to the Department of Electronics and Information Technology.

Proposal Requirements

• Needs to drive innovation in Electronics and IT

• Has to focus on modules, products, packages, or services

• Requires a well-defined plan from prototype to commercialisation

• Has to align with a core business area within the industry

Project Investigator and R&D Capability

The selected institution or investigator needs to demonstrate expertise and a strong track record. R&D capabilities are evaluated based on:

• Level of professional courses in ICTE (B.Tech/M.Tech/Ph.D).

• Previous research projects and publications

• Industry collaborations

• Institution’s existence for a minimum of five years

Market & Industry Analysis

The proposal has to establish technical and commercial feasibility, covering:

• Target market and buyer behaviour analysis

• Demand-supply assessment and SWOT analysis

• Pricing evaluation for new products or services

A comprehensive understanding of industry potential is essential. This includes:

• Availability of skilled manpower for technology adoption

• Infrastructure for in-house production

• Formation of a sub-committee when further analysis is required

The scheme is structured to foster collaboration between industries and research institutions while driving advancements in technology and innovation. Its objectives include:

• Maintaining strong cooperation between industries and R&D organisations

• Enhancing industry-related study and research on product development

• Strengthening the transition process from concept to commercialisation

• Providing funding for the development of innovative solutions in electronics and information technology

MGS supports startups and businesses by connecting academic research with industry requirements, fostering innovation and promotion:

• Industry Promotion: It facilitates academy-industry collaboration to drive Indigenous product development and sales

• R&D for Innovation: The scheme funds research in Electronics and IT, covering costs related to analysis, prototyping, and promotion

• Market Research: Participants need to conduct surveys on demand, consumer behaviour, and pricing

• Government Grants: The scheme provides up to ₹2 Crores for individual sectors (two years) and ₹4 Crores for consortiums (three years)

• Project Coverage: Funding is allocated for equipment, human resources, travel, and training, with a 15% overhead cap  

• Project Review & Steering Group (PRSG): This government-appointed body monitors project progress, reviews finances and technical aspects, and determines grant disbursement

This scheme enhances collaboration between academia and industry, fostering technological advancements and innovation. It provides multiple advantages for both sectors by:

• Enabling universities and research laboratories to address real-world industry challenges

• Facilitating the exchange of knowledge and expertise with industry professionals

• Assisting businesses in developing cost-effective and innovative products

• Providing financial incentives to attract and retain researchers

• Promoting the establishment of startups and fostering stronger industry-academia collaborations

Institutions and industries need to fulfil specific criteria to participate in this initiative. The requirements include:

• Institutions need to offer B.Tech, M.Tech, or Ph.D. programmes in Information, Communication, Technology, and Electronics (ICTE)

• Prior research experience, publications, or industry collaborations are required

• Institutions need to have been established for a minimum of five years

• Industries need to possess the necessary infrastructure and a skilled workforce for technology adoption

Applying for this scheme requires institutions and industries to follow a structured process. The necessary steps include:

1. Visit the official website of the Ministry of Electronics and Information Technology

2. Select ‘Multiplier Grants Scheme’ from the list of available schemes

3. Click on "Application Form for Submission of Joint R&D Project Proposal"

4. Download and print the form

5. Complete the form with the required details

6. Locate the "Invitation of Project Proposals" link on the same webpage

7. Submit the completed application along with the necessary documents to the designated address