1. Is the funding provided under iDEX a grant or equity-based?
Funding under iDEX is provided as a grant-in-aid (SPARK Grant). DIO does not take any equity or ownership in the startup/ MSME
2. What is the maximum grant amount available under standard DISC and Open Challenges?
Under DISC and Open Challenges, winners can receive grants of up to ₹1.5 crore, subject to approval of the Product Development Budget (PDB).
3. What is the grant ceiling for critical technologies under the ADITI scheme?
Under ADITI, winners can receive grants of up to ₹25 crore, subject to approval of the Product Development Budget (PDB).
4. If a project's budget is more suited to ADITI than an Open Challenge, can it be considered under ADITI instead?
No, a challenge under Open Challenge can receive only upto ₹1.5 crore in grant. It cannot be transitioned to ADITI.
5. If a project needs a significantly higher budget than usual iDEX limits (e.g., ~₹900 million), what's the appropriate route?
In this case Startup may explore the option of Make Category
6. What does "matching contribution" mean, and what percentage is the startup expected to bear?
Matching Contribution (MC) is the startup's share of project cost. It can be in the form of Cash, Past Expenditure, and In-Kind. MC is at least 50% of the Total Project Cost.
7. Is there any restriction on where matching-grant funding can come from does it have to be Indian?
All the terms and regulations with respect to Matching Contribution has been laid out in the SPARK Grant Agreement.
8. If we can't arrange the required matching contribution, does iDEX provide a letter/support to approach investors?
iDEX has an iDEX Investor Hub (iIH), wherein have on boarded Investors. iDEX supports in doing a matchmaking of the Startups and the Investors
9. Can iDEX/SPARK grant funds pay founder/promoter salaries, including accrued (not monthly-drawn) salary under Annexure Y of the SPARK Grant Agreement, and how does this affect minimum cash contribution?
As Current practices ensure that following ceiling limit is under practice: Salary of promoter/founder/core team has been capped at max Rs 2.5 Lakh per month each (with an increase @10% per year), except in exceptional cases for Core Team, for a maximum of two promoters/founders per startup. This overall limit will be in vogue even if the promoters/founders have more than one ongoing project with iDEX. Hence max Rs.62,500/- per month each (with an increase@10% per year) for two promoters at 25% of per month pay will be admissible even if they are undertaking more than one project with iDEX.
10. Are there restrictions on how grant money can be spent? What is the Negative List for Expenditures?
The Product development budget(Spark Grant and Matching contribution) approved for the SPARK Grantee shall not be used for the expenditures mentioned below:
a. Cost overruns - The SPARK Grantee shall bear the additional cost in case of cost overruns.
b. Cost of land and buildings
c. Establishment of new R&D centres
d. Writing of books or reports or collection of statistics or service
e. Investments
f. Interest on loan
g. Bad debts
h. Contributions or donations
i. Fines and penalties
j. Advocacy
k. Losses from other businesses or commercial operations
l. Expenditures/Liabilities by applicant before/after the sanction of the SPARK grant found to be irrelevant in general or not in accordance with the intent of co-creation under the current spark agreement, including its Annexures.
m. Refinancing
n. Entertainment/Alcoholic beverages
o. Any other Capital or Operating expenditures not authorised in PDB or not included in WBS as recommended by PMU.
11. How is Capital Equipment included in the Product Development Budget (PDB)?
Capital Equipment may be purchased as a part of the project. In case already purchased and is in use before the Agreement, it may be included in the PDB based on guidelines set by DIO. Old/New equipment will be included based on its amortized/depreciated costs. [Annexure Y]
12. How is rent treated as part of the PDB?
Use of existing labs is encouraged to ensure efficient use of funds. Actual expenses paid to use such a lab would be part of primary overhead. For any such expenditure to be considered as part of in Kind expense, a formal agreement between the parties is needed. [ Annexure Y]
13. In case of multiple projects from the same startup/firm, can salary be claimed from all projects?
The salary may be claimed preferably from only one project and on pro-rata basis if involved in multiple projects. [Annexure Y].
14. How are payments made when a company imports equipment?
The exchange rate will be of date when actual transaction has taken place and not the date of delivery of product.
15. Can Promoter/Founder-owned IP be treated as an MC In-Kind expense if used for iDEX product development?
Yes IP valuation of product prototype can be considered as In-kind expenditure based on valuation performed by a registered valuer. The consideration of valuation of IP would be decided based on criticality in the project and on a case-to-case basis at the time of negotiation of the agreement for Matching Contribution. The amount admissible as MC for IP may be capped at 20% of total Matching contribution or the amount Rs. 25 Lac whichever is lower.
16. What is reallocation within sub-heads of the product development budget?
Reallocations of resources within a head – e.g. across line-items or sub-heads is allowed subject to fulfilment of percentage limits of Prime cost, Primary Overhead and Secondary Overhead and recommendation from Partner Incubator (PI).
17. What is an iDEX Project Transaction?
SPARK Grantee must do all the expenditure from the exclusive iDEX Bank Account except past expenditure, and no transaction should be in cash more than the limit specified in the applicable laws.
