• 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.
• The consideration of valuation of promoter/founder owned 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 and IP filing cost of product under development. The amount admissible as MC for IP may be capped at 20% of the total Matching contribution or the amount Rs. 25 Lac whichever is lower.
• PDB at the time of signing of the agreement is tentative which may undergo multiple changes during the course of Product Development. In all cases, SPARK Grant will remain up to Rs.1.5 Cr/10 Cr/ 25 Cr or half (50%) the product development budget whichever is lower.

• 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]

• 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]

• The salary may be claimed preferably from only one project and on pro-rata basis if involved in multiple projects. [Annexure Y].

• The exchange rate will be of date when actual transaction has taken place and not the date of delivery of product.

• 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.

• 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. 

The Product development budget(Spark Grant and Matching contribution) approved for the SPARK Grantee shall not be used for the expenditures mentioned below:

• Cost overruns - The SPARK Grantee shall bear the additional cost in case of cost overruns.
• Cost of land and buildings
• Establishment of new R&D centres
• Writing of books or reports or collection of statistics or service
• Investments
• Interest on loan
• Bad debts
• Contributions or donations
• Fines and penalties
• Advocacy
• Losses from other businesses or commercial operations
• 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.
• Refinancing
• Entertainment/Alcoholic beverages
• Any other Capital or Operating expenditures not authorised in PDB or not included in WBS as recommended by PMU.

• 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 OH and Secondary OH.