Component B provides direct financial assistance to startups, MSMEs and industry for both early-stage and late-stage R&D projects. Early-stage projects can receive up to ₹5 crore (without co-funding if the project cost ≤₹1 crore), while late-stage projects may avail up to ₹100 crore with a cap of 35% central funding. For Strategic Priority Innovations addressing critical public health issues like orphan drugs or antimicrobial resistance, assistance may extend up to 50%. Nine slots each are reserved for early and late-stage projects undertaken in partnership with such institutions. Beneficiaries will also be bound by structured profit-sharing mechanisms, offering options of fixed-rate payments, graded royalty, or equity dilution in proportion to government support, ensuring accountability and reinvestment in public research.