DPIIT to allocate funds for biotechnology ventures
- by Team ABLE - 13 Aug, 2019
According to recently published news report inThe Economic Times, the Department for Promotion of Industry and Internal Trade (DPIIT) is considering earmarking funds from the Fund of Funds for Startups(FFS) for biotechnology ventures to promote indigenous technologies inhealthcare, agriculture, food and nutrition.The Department of Biotechnology (DBT) sought support from DPIIT and suggested allocating funds specifically for the biotech startups.
The report highlighted that thegovernmenthas disbursed around Rs 380 crore in the past three years to develop bioclusters and bioincubators. Of this, around Rs 196 crore has been spent on four bioclusters and Rs 174 crore on 41 bio-incubators through the BioNEST scheme under the Biotechnology Industry Research Assistance Council (BIRAC), a not-for profit public sector enterprise under the Department of Biotechnology. Under the BIRAC seed fund, Rs 8.5 crore was disbursed to 13 bioincubators in the past three years.Many funds in which the council has made commitment have also received commitment under the FFS, according to another official who said the issue came up at a recent meeting to discuss the operations of the FFS.
Unlike startups in the information technology sector, enterprising ideas in the biotech sector need incubation support and a landing space to test their ideas, run their operations, have access to high-end instrumentations and locate in a place where they connect with other startups and mentors.Under the BIRAC seed fund, Rs 8.5 crore was disbursed to 13 bioincubators.In 2017-18, the DBT also setup a Biotechnology Innovation Fund-AcE Fund (Accelerating Entrepreneurs) with a total cost of Rs 150 crore for three years to attract investment in biotechnology sector.
Source & Credit: Economic Times
Indian Biotech startups are now likely to get further boost from Fund of Funds forStartups(FFS) at SIDBI.