Source: TH
Subject: Economics/Science and Technology
Context: The Centre has formally defined and notified eligibility criteria for ‘deep tech’ start-ups through a DPIIT gazette notification.
About Deep Tech Start-ups:
What it is?
- Deep tech start-ups are enterprises that build solutions based on new scientific or engineering knowledge, involving high technical uncertainty, long gestation periods, and intensive research and development (R&D), rather than incremental or platform-based innovation.
Organisations involved:
- Department for Promotion of Industry and Internal Trade (DPIIT): Final authority to certify start-ups and deep tech start-ups.
- Anusandhan National Research Foundation (ANRF): Custodian of the ₹1 lakh crore RDI Fund, a key financier for deep tech ventures.
Eligibility criteria:
- Core activity must involve creation of new knowledge in science/engineering.
- Major expenditure on R&D activities.
- Ownership or active creation of novel intellectual property (IP) with plans for commercialization.
- Characterized by long development timelines, high capital/infrastructure needs, and scientific/technical risk.
- Prohibition on non-core investments (e.g., real estate, speculative assets, securities) unless integral to knowledge creation.
- Mandatory application to DPIIT for certification.
Key features:
- Extended recognition window: Up to 20 years (vs 10 years for regular start-ups).
- Higher turnover threshold: Up to ₹300 crore (vs ₹200 crore).
- Policy-backed financing: Access to concessional long-term finance (reported ranges of 2–4% interest, tenure up to 15 years).
- Governance oversight: Certification guided by an inter-ministerial technical board.
Significance:
- Channels patient capital to high-risk, high-impact innovation (AI, semiconductors, biotech, quantum, advanced materials).
- Aligns public R&D funding with commercialization pathways via ANRF’s RDI Fund.
