Rs 60 crore has been proposed for setting up of technology incubation centres by partner institutions and Rs 50 crore 'fund of funds' for start-ups to be managed by SIDBI.
A Governing Council headed by MSME Secretary would be responsible for the overall policy, coordination, and management support, the draft said.
Finance Minister Arun Jaitley in his Budget speech had announced setting up of the fund to establish technology centre network to promote innovation, entrepreneurship and agro-industry.
Jaitley had also suggested to put in place a programme to facilitate forward and backward linkages with the multiple chain of manufacturing and service delivery and also to take up a nationwide 'Districts level Incubation and Accelerator Programme' for incubation of new ideas and providing support.
The MSME Ministry has sought comments from stakeholders on the draft scheme within 15 days.