under NIDHI-SSP (Seed Support Program)
Up to ₹1Cr
Grant Types
One portion or instalment of a larger funding amount that is disbursed in stages subject to the achievement of specific conditions or milestones. Government grants in India are commonly structured in 2–4 tranches over the programme period — for example, 25% upfront for equipment and materials, 50% against a mid-term progress report, and 25% on final project completion. Each tranche release typically requires submission of a utilisation certificate, expense statement, and technical progress report. The term comes from finance (French for 'slice') and applies equally to grant funding and debt financing.
A tranche (from the French word for "slice") is an individual instalment of a larger funding amount that is disbursed in stages subject to the achievement of specific conditions or milestones. While tranche structures are most common in government grant programmes — where 2–4 tranches are released over the project lifecycle — the concept applies equally to venture capital (tranched equity rounds where part of the capital is held back pending milestones), debt financing (tranches of a loan released as construction or expansion phases are completed), and CSR commitments (tranches released against impact reports). Each tranche release typically requires the recipient to submit specific documentation: a technical progress report describing what was achieved, an expenditure statement showing how previous funds were used, and a utilisation certificate certified by a practising chartered accountant. Some programmes also require a site visit or verification by a technical committee before releasing the next tranche.
The process for releasing a tranche typically follows these steps: 1. Complete the milestone activities defined in the grant agreement. 2. Prepare the required documentation — progress report, expenditure statement, and utilisation certificate. 3. Submit to the programme officer within the stipulated timeline. 4. The programme officer or technical committee reviews the submission and may request clarifications. 5. Upon approval, the disbursement is processed — typically taking 2–6 weeks from submission to fund receipt. 6. The next milestone period begins, and the cycle repeats.
A startup awarded a ₹50 lakh BIRAC BIG grant has a four-tranche structure: Tranche 1 (₹15 lakh) — upfront for equipment and consumables, released at signing. Tranche 2 (₹15 lakh) — released upon completion of proof-of-concept experiments and submission of interim technical report. Tranche 3 (₹12 lakh) — released upon completion of prototype and field-testing. Tranche 4 (₹8 lakh) — released upon submission of final technical report, utilisation certificate, and audited statement. The startup completes each milestone on schedule and receives all four tranches within 14 months.
Tranche-based funding creates financial discipline and regular accountability. Plan your cash flow to bridge the gap between milestone completion and actual tranche receipt — the lag can be several weeks.