At the 42nd Foundation Day of the Department of Scientific and Industrial Research (DSIR), Union Minister Dr. Jitendra Singh announced Relaxation of DSIR Funding Norms for Deep-Tech Start-ups.
- DSIR provides financial assistance under Industrial Research and Development Promotion Programme (IRDPP) to promote industrial research and development.
About Department of Scientific and Industrial Research (DSIR)
- Establishment:
- It was created through a Presidential Notification dated 4 January 1985, under the 164th Amendment of the Government of India (Allocation of Business) Rules, 1961.
- The department is mandated to promote indigenous technology development, utilisation, and transfer.
- Nodal Ministry: DSIR functions under the Ministry of Science and Technology.
- Core Mandate and Objectives:
- Promote industrial research and development (R&D) across sectors.
- Support small and medium industrial units (SMEs/MSMEs) in developing globally competitive technologies.
- Act as a bridge between scientific laboratories and industry through:
- National Research Development Corporation (NRDC) for technology transfer
- Central Electronics Limited (CEL) for facilitating R&D investments.
About Industrial R&D Promotion Programme (IRDPP)
- Objectives:
- Promote a stronger focus on in-house Research & Development (R&D)
- Strengthen R&D infrastructure in industry and Scientific & Industrial Research Organisations (SIROs)
- Encourage industry-led and SIRO-led R&D initiatives
- Align the work of in-house R&D centres and SIROs with national technological and industrial development goals
- Programme Type: Research and Development (R&D)
- Focus Areas: Engineering, Environmental, Natural and Applied Sciences, Agricultural Sciences, Medical Sciences, Social Sciences
- Funding Agency: Department of Scientific and Industrial Research (DSIR)
- Eligibility Criteria:
- Applicant must be a company registered under the Companies Act, 1956 or 2013
- Minimum three financial years completed since incorporation
- Must have a regular source of income for at least the last two years
- Companies seeking RDI recognition should be engaged in manufacturing, production, or technical services
- R&D units must be located in authorised non-residential premises
- Availability of independent R&D infrastructure and qualified technical manpower
- R&D unit must be functional at the time of application
- Presence of clearly defined, time-bound R&D programmes aimed at developing innovative products or technologies
Policy Changes Announced
- Removal of Viability: The three-year minimum viability/existence criterion has been removed for deep-tech start-ups seeking funding under DSIR.
- Funding Limit: Eligible start-ups can now avail financial assistance of up to ₹1 crore.
- Safeguards and Evaluation Standards
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- Technology Maturity Assessment: Start-ups must still meet appropriate evaluation standards linked to technological maturity.
- Quality Control: The funding relaxation does not dilute scrutiny but shifts focus from age-based criteria to technology readiness and innovation potential.
Rationale Behind the Reform
- Early-Stage Support: The removal of the three-year requirement is intended to give early momentum to innovative projects and entrepreneurs.
- Scaling Innovation: The reform enables start-ups to scale faster, even before becoming financially self-sustaining.
- Encouraging Deep-Tech: Deep-tech sectors often involve long R&D cycles, making early financial support crucial