Centre lays down eligibility criteria for ‘deep tech’ start-ups in country, Pg10

Key Highlights:

• The Department for Promotion of Industry and Internal Trade (DPIIT) has officially defined "deep tech" start-ups in India.
• A "deep tech" start-up focuses on solutions based on new knowledge or advancements in science or engineering.
• These start-ups must invest primarily in Research and Development (R&D) and own or be in the process of creating novel Intellectual Property (IP).
• Deep tech companies can be considered start-ups for up to 20 years with a turnover of up to ₹300 crore.
• The DPIIT is the final authority for certifying a company as a "deep tech" start-up, guided by an Inter-Ministerial Board of Certification.
• Start-ups are restricted from investing in unrelated activities like real estate or speculative assets.
• The Anusandhan National Research Foundation manages the ₹1 lakh crore Research and Development Innovation (RDI) Fund, which will invest in emerging technologies.

Detailed Insights:

• The definition emphasizes that "deep tech" start-ups face long development timelines, high capital needs, and significant technical uncertainty.
• To be certified as a "deep tech" start-up, companies must apply to the DPIIT, which will assess them based on guidance from an Inter-Ministerial Board.
• The RDI Fund aims to provide concessional financing at rates of 2%-4% with tenures up to 15 years for companies with RDI funds.
• A "deep tech" policy was prepared by the Principal Scientific Adviser’s office in July 2023 but is awaiting Union Cabinet approval.
• This definition is crucial due to the Centre's focus on technology-driven start-ups and the need for targeted investment in emerging technologies.
• A regular start-up, as defined by the DPIIT, is a company less than 10 years old with a turnover less than ₹200 crore.
• The notification aims to prevent misuse of funds by restricting investments to activities directly related to knowledge creation.

Key Concepts Involved:

• Deep Tech: Start-ups focused on solutions based on significant scientific or engineering advancements.
• Research and Development (R&D): Systematic investigation to discover or create new knowledge and products.
• Intellectual Property (IP): Creations of the mind, such as inventions, designs, and artistic works, protected by law.