Lok Sabha Question No. 484 (STARRED), answered on 2022-04-06
Subject: Schemes to Aid Startups in Technology Sector
Ministry: SCIENCE AND TECHNOLOGY
Asked by: Shrikant Eknath Shinde, Aparupa  Poddar

## GOVERNMENT OF INDIA MINISTRY OF SCIENCE AND TECHNOLOGY DEPARTMENT OF SCIENCE AND TECHNOLOGY LOK SABHA

## STARRED QUESTION NO. *484 TO BE ANSWERED ON 06.04.2022

## SCHEMES TO AID STARTUPS IN TECHNOLOGY SECTOR

- *484.    DR. SHRIKANT EKNATH SHINDE: SHRIMATI APARUPA PODDAR:

Will the Minister of SCIENCE AND TECHNOLOGY ǒव£ान और Ĥौƭोिगकȧ मंğी pleased to state:

be

- (a) whether the Government has launched any new schemes to directly increase and aid Startups in the technology sector, if so, the details thereof and if not, the reasons therefor;
- (b) whether the Government has recognised any barriers in technology adoption in the Government service delivery, promoting industry participation in Research and  Development  (R&D)  activities  and  supporting  States  in  building  human
- resource capacity around futuristic technologies and if so, the details thereof;
- (c) whether the Government has launched any scheme to ease these barriers; and
- (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF SCIENCE AND TECHNOLOGY & EARTH SCIENCES (DR. JITENDRA SINGH)

ǒव£ान और Ĥौƭोिगकȧ तथा पृØवी ǒव£ान मंğालय क े राÏय मंğी ( èवतंğ Ĥभार) ( डॉ. ǔजतɅġ िसंह )

- (a) to (d): A statement is laid on the Table of the House.

STATEMENT AS REFERRED TO IN REPLY TO PARTS (A) TO (D) OF LOK SABHA STARRED  QUESTION  NO.  484  (POSITION  4)  FOR  06.04.2022  REGARDING 'SCHEMES TO AID STARTUPS IN TECHNOLOGY SECTOR'

(a) Yes Sir,  Government  has launched number of programs to aid Startups in technology  sectors.  The  programmes  initiated  by  Department  of  Science  & Technology aim to nurture innovation and technology led entrepreneurship, which also creates new avenues for wealth creation and job generation. In line with the Hon'ble  PM's  vision  on  Innovation  and  Start-up  India,  National  Initiative  for Developing and Harnessing Innovations (NIDHI) programme has been initiated in 2016-17, which aims to convert knowledge-based and technology-driven innovative ideas into successful startups.

NIDHI  program  has  various  components  like  providing  fellowships  to  the students  opting  for  entrepreneurship  through  Entrepreneurs-In-Residence  (EIR) Program, PRAYAS (Promoting and Accelerating Young and Aspiring Innovators and Startups)  program  by    providing  financial  support  for  converting  ideas  into prototypes, availability of early stage Seed support funding to startups, providing mentoring and investment readiness support through Accelerators to startups, and creating state-of-the art infrastructure for incubating startups in technology sectors through Technology Business Incubators (TBIs) and Centres of Excellence (CoE). Till date 50+ NIDHI TBIs and 7 NIDHI CoEs have been setup in the country.

Department of Science & Technology (DST) has also initiated the National Mission  on  Interdisciplinary  Cyber-Physical  Systems  (NM-ICPS).  As  part  of  the Mission  implementation,  25  Technology  Innovation  Hubs  (TIHs)  have  been established in reputed  institutes across the country in advanced technologies. One of the major activities of the Mission is boosting Innovation, Entrepreneurship & Start-Up in emerging areas of technologies such as AI (Artificial Intelligence), ML (Machine Learning), Robotics, IOT (Internet of Things) etc.

Technology  Development  Board  (TDB)  a  statutory  body  of  Department  of Science and Technology (DST) provides financial assistance in the form of loan or equity and/or in exceptional cases, grant to industrial concerns and other agencies attempting commercial application of indigenous technology or adapting imported technology for wider domestic applications. Companies/ start-ups are allowed to apply throughout the year for part financing their project for commercialization.

The DPIIT Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization. The scheme enables startups to graduate to a level where they are able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions.

Department  of  Biotechnology,  through  Biotechnology  Industry  Research Assistance Council (BIRAC), supports and nurtures startups in the Biotechnology sector.  The  major  schemes  are  BioNESTscheme  (Bio  incubators  Nurturing Entrepreneurship for Scaling Technologies) and Biotechnology Ignition Grant (BIG) schemes. Through these scheme,  BIRAC has supported 60 Incubation centres across 18 states in the country, supporting 1500+ incubatees.

Atal Innovation Mission has set up Atal Incubation Centres (AIC) to incubate startups in various sectors. It has also launched Atal New India Challenge (ANIC) program to directly  aid  start-ups  with  technology-based  innovations  that  solve sectoral challenges of national importance and societal relevance.

The Innovations for Defence Excellence(iDEX) was  launched by the Department of Defense Production, Ministry of Defense, with the aim to achieve self-reliance and foster innovation and technology development in Defense and Aerospace by engaging Industries, R&D institutes and academia and provide them grants to carry out R&D. The startups receive upto Rs 1.50 Crore as grant for development of innovative prototypes. They also receive enormous support from iDEX's partner Incubators at IITs, IIMs and other private incubators spread all over the country.

Ministry of Electronics & IT (MeitY) has launched Technology Incubation and Development of Entrepreneurs (TIDE 2.0) Scheme to promote tech entrepreneurship through financial and technical support to incubators engaged in supporting ICT startups using emerging technologies such as IoT, AI, Blockchain  etc.  Next  Generation  Incubation  Scheme  (NGIS)  of  MeitY  has  solution oriented architecture and aims to handhold 300 Tech Start-ups in Tier-2/3 cities over a period of 3 years with the total budget outlay of Rs. 95.03 Crores.

(b), (c) and (d) Yes Sir. Government has recognized technology as the key enabler for efficient delivery of services to its beneficiaries. Departments of Government periodically evaluate the barriers, challenges and missing links in its technology led service programs and attempts to address identified challenges by evolving new programs.

BIRAC, DBT has identified some barriers in advancement of R&D like Limited common access facilities for Pilot and early stage manufacturing for advanced stage  startups,  Regulatory  compliances  awareness  and  clearance  etc.  As  a solution, BIRAC under DBT has set up Project Development Cell (PDC) for Biotech sector which is positioned to work with Centre and States to create an investment friendly  ecosystem,  strongly  supporting  the  domestic  investor  and  FDI.  It  also resolves issues with highest level intervention through the Empowered Group of Secretaries (EGoS). National Investment Clearance Cell (ICC) for Biotech sector

facilitates regulatory support through Single Window System and promote Ease of doing business.

With launch of Digital India Programme along with rapid pace of digitization and penetration of mobile phones and access to internet has enabled adoption of technology in service delivery in a more  transparent and efficient way. Government  initiatives  like  COWIN  app  for  efficient  management  of  vaccine programme;  enabling  implementation  of  GST  through  IT  tools,  Direct  Benefit Transfer (DBT) are some shining examples of technology adoption and efficient delivery of services.

DST's National Mission on ICPS (National Mission on Interdisciplinary Cyber Physical  System)  includes  Central  Ministries,  State  Governments,  Industry  and Academia  as  stakeholders.  The  mission,  apart  from  major  focus  on  advanced technology development, translation & commercialization, also has major components on Human Resource & Skill Development in advanced and futuristic technologies.  The  support  under  DST  NM-  ICPS  and  DST-  NIDHI  programs  is provided to not-for-profit entities in form of section 8 companies or societies for providing enhanced autonomy in fast decision making and providing conducive environment for startups to grow.

Government has initiated programmes to promote industry participation  in Research  and  Development  activities.  DST  through  Science  and  Engineering Research Board (SERB), has launched Industry Relevant R & D (IRRD) scheme whose objective is to utilize the expertise available in academic institutions and national laboratories to solve industry specific problems for the larger benefit of society. The government and industry have jointly developed the Prime Minister's Fellowship  Scheme  to  attract  talent  for  doctoral  research,  nurture  leadership qualities in scholars and encourage industrial research in academic institutions. The scheme has the provision to award up to 100 new scholarships every year, of up to Rs 8.7 lakh per annum per candidate. DST, through its Clean Energy Research Initiative has facilitated industry participation for the development of technologies through collaborative industry R&D. Some of the research domains are: Methanol Production from Indian Coal, Hydrogen and fuel cell program to boost industry participation, development of photocatalytic membranes for simultaneous water disinfection and filtration, etc.

CSIR  has  set  up  7  Common  Research  and  Technology  Development  Hubs (CRTDHs)  during  last  five  years,  for  promoting  industrial  R&D  innovation, dedicated for MSMEs, start-ups and individual innovators. CSIR laboratories have been continuously  providing  training  in  diverse  areas  for  undergraduates,  post graduates and Research students. They are also engaged in conducting Industry oriented training/ skilling programmes that have been well accepted by users.

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