Lok Sabha Question No. 579 (UNSTARRED), answered on 2023-12-06
Subject: National Deep Tech Startup Policy
Ministry: COMMERCE AND INDUSTRY
Asked by: Raghu Ramakrishna Raju Kanumuru, Komati Reddy Venkat Reddy, Manne Srinivas Reddy

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 579.

TO BE ANSWERED ON WEDNESDAY, THE 06 th  DECEMBER, 2023.

## NATIONAL DEEP TECH STARTUP POLICY

579.   SHRI KANUMURU RAGHU RAMA KRISHNA RAJU: SHRI KOMATI REDDY VENKAT REDDY: SHRI MANNE SRINIVAS REDDY:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government has embarked on the implementation of the National Deep Tech Startup Policy to 'ensure India's position in the global deep tech value  chain',  in  areas  such  as  semiconductors  and  Space  technology  and India's G20 meetings discussed;
- (b) if so, the details and the outcome thereof;
- (c)     whether India's success in developing an array of technological applications, such as digital payments, made it a 'natural ecosystem' for deep tech, however, India needs a 'fund of funds' - that is, a significant amount of private foreign capital, along with the Government funds - to finance promising start-ups that were relatively long-term and India and the U.S. were already working on this front to collaborate on deep tech; and
- (d) if so, the details and present status thereof and investments made under such policies/results yielded till now?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) & (b): A draft National Deep Tech Startup Policy has been prepared and placed for  comments in the  public domain. The  link to the policy is -

https://www.psa.gov.in/deep-tech-policy.

- (c) & (d): In order to provide long term financing to startups, the Fund of Funds for Startups (FFS) Scheme was approved and established in June, 2016 with a corpus of Rs. 10,000 crore, with contribution  spread  over  the 14 th   and 15th Finance Commission  Cycle  based  on  progress  of implementation.  The  objectives  of  FFS  include  providing  a  muchneeded  boost  to  the  Indian  Startup ecosystem and enabling access to domestic capital to accelerate innovation driven entrepreneurship and business creation. The scheme is operationalized by Small Industries Development Bank of India (SIDBI).

Under  FFS,  the  Scheme  does  not  directly  invest  in  startups,  instead provides  capital  to  Securities  and  Exchange  Board  of  India  (SEBI)registered  Alternative  Investment  Funds  (AIFs),  known  as  daughter funds, who in turn invest money in growing Indian startups through equity and equity-linked  instruments.  SIDBI  has  been  given  the  mandate  of daughter  funds  and overseeing the disbursal of committed capital. AIFs supported under FFS are required to invest at least 2 times of the amount committed under operating FFS through selection of suitable FFS in startups.

As  on  31st  October  2023,  under  FFS,  Rs.10,229  crore  has  been committed to 129 AIFs and Rs. 4,382crore has been disbursed to 91 AIFs which have in turn made investments of Rs. 17,273crore in 915 startups.

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