The Centre is in the process of creating a separate dedicated deep tech startup policy, Rajesh Kumar Singh, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT) said on Monday.
“Policy paper is now in the final stages of discussion at inter ministerial level. We hope to bring it forward soon”, Singh said in his inaugural address at the first ever ‘Startup Mahakumbh’ in the capital.
Singh also said that government proposes to set up a dedicated Fund of Funds that would invest in Alternate Investment Funds (AIFs), which would then pump in funds into deep tech startups.
Centre had about eight years back through SIDBI set up a dedicated Fund of Funds to the tune of ₹10,000 crore to support startups. Now it is looking to set up another Fund of Funds targeted at deep tech startups.
Singh expressed confidence that separate window would soon be made available to support development of deep tech startups in the country.
He also underscored the need for startups to gain the ability to commercialise Intellectual Property Rights (IPRs). “It is not enough to do innovation, you should be able to convert it into IPRs which are of long term benefits to the country and yourself”, he added.
Amitabh Kant, G20 Sherpa and Former CEO NITI Aayog said there is a need for big deep tech fund of funds (FoF) that would deploy resources in AIFs.
“Much of the Startups movement success stories has been because we have been able to create FoF. Part of the risk taking is done through fund of funds. Work is really done by the Venture Capital”, he said.
“If we are able to create a patient capital for deep tech, that will be a big story for deep tech to grow and prosper. Future lies in deep tech”.
S Ramann, Chairman and Managing Director, SIDBI said that of the ₹12,000 crore funds committed to support startups, the drawdown has been to the tune of ₹4,500 crore. This ₹4,500 crore has been catalytic in helping startups garner another ₹56,000 crore, he added.