This is given to hardware startups with a significant R&D component. Up to INR 30 Lakh can be given to each startup, and recommendations for nominees will be made during the quarterly reviews. In order to qualify for the grant, startups need to have a working prototype of their product and be a member of at least one approved incubator in the state. Applicants must submit a clear business plan stating how they plan to use the money — at least 50% of the grant must be spent on hardware, with not more than 20% on marketing expenses. R&D grants cannot be used for covering manpower or hiring costs. Preference is given to startups that have secured patents or those that are scaling up their product.