Policy on deep-tech startups: Deep tech policy ahead of cabinet to unlock long-term funds soon

The commerce ministry plans to soon present a policy on deep tech startups to the Cabinet, under which a fund of funds will be set up to support space companies, insiders told ET. This fund of funds would also invest in an alternative investment fund for start-ups in this segment, the people added.

Instead of a very descriptive policy, the government can come up with a general framework that will act as guiding principles for state governments as well as startups in this space, a government official said.

“There are nine main areas such as nurturing and developing research, development and innovation in the sector that are currently missing in the country’s intellectual property system and how they can be remedied and how the access of deep tech start-ups can to ease financing. The policy will focus on them,” the official said.

So far, comments have been sought from 18 different government ministries and departments and consultations on various aspects are at a very advanced stage, said a second official.

Most of the important information came from the Department of Promotion of Industry and Internal Trade and the Ministry of Electronics and Information Technology, another official said.

In addition to focusing on R&D, intellectual property and financing for deep tech startups, policy can also encourage and enable the sharing of infrastructure and resources by creating India-centric regulations, standards and certifications, and also focus on capacity building to sustain human resources in India, the official said.

“For example, when we talk about focusing on research and development, the idea is also to change existing research evaluation practices in our academic institutes and university research laboratories so that research work can be translated into industry-ready results,” he said clerk.

Similarly, to strengthen the IP regime, the proposed policy aims to establish a single-window platform mechanism to provide a unified IP framework and guidelines for IP creation.

To provide sustainable, long-term funding for deep tech startups, the government could modify its policies to direct more corporate social responsibility funding to institutions involved in deep tech science and research, establish a grant framework independent of ministries, and introduce technology bonds to enable greater investment in the sector,” one official said.