|
Small Business Innovation Research Initiative (SBIRI)
for Public Private Partnership 1. Introduction
Opening up of the Indian Economy with increased liberalisation and integration with the global economy has necessitated Indian Industry to take steps to reorient itself. Further, in the light of the Agreement on Trade Related Intellectual Property Rights (TRIPS) of the World Trade Organisation (WTO), the Indian Entrepreneurs have started thinking more and more about indigenous technologies, their development, perfection and absorption. However, the Indian industry has to speed-up its efforts to gain competitive advantage as a nation to capture the global market and generate wealth. The commercialization of new technologies and high tech projects in various biotech industries need to be accelerated to meet the future challenges and realise full potential of biotechnology. Biotechnology industries are at the forefront of another technological revolution and are definitely going to prove as the industry of the new millennium. Biotechnology research has vast potential for commercialisation in the areas of agriculture, human and animal health, environment, diagnostics, immunobiologicals and various industrial products like antibiotics, industrial enzymes, vitamins etc. The global biotechnology has been undergoing dynamic changes in terms of perspective and priorities. While we may capitalize on our strength in bio generics, innovation is needed for development of new products and processes. There is a need to create a critical mass of small business units that have the potential to drive the innovation.
2. About the Scheme
The Small Business Innovation Research Initiative (SBIRI) is the new scheme launched by the department to boost public-private-partnership effort in the country. The distinctive feature of SBIRI is that it supports the high-risk pre-proof-of-concept research and late stage development in small and medium companies lead by innovators with science backgrounds which is unique in nature to support private industries and to get them involved in development of such products and processes which have high societal relevance. SBIRI has unique process for generating ideas by bringing users and producers of technology together, it has the direct focus on producing product and a sense of urgency for producing defined results that only private sector engagement can produce. National consultations will be held after every three to six months to generate ideas in different sectors of biotechnology namely medical, agriculture, food, industry and environment.
The SBIRI aims to:
-
strengthen those existing private industrial units whose product development is based on in-house innovative R&D,
-
encourage other smaller businesses to increase their R&D capabilities and capacity,
-
create opportunities for starting new technology-based or knowledge-based businesses by science entrepreneurs,
-
stimulate technological innovation,
-
use private industries as a source of innovation and thereby fulfil government objectives in fostering R&D, and
-
increase private sector commercialisation derived from Government funded R&D.
2.1 Objective
The key objectives are:
-
to provide support for early stage, pre-proof-of-concept research in biotechnology by industry,
-
to support late stage development and commercialisation of new indigenous technologies particularly those related to societal needs in the healthcare, food and nutrition, agriculture and other sectors,
-
to nurture and mentor innovative and emerging technologies/entrepreneurs, to assist new enterprises to forge appropriate linkages with academia and government.
2.2 Area Coverage
The scheme covers all areas in biotechnology related to health-care, agriculture, industrial processes and environmental biotechnology, and bio-medical devices and instruments.
2.5 Who can apply?
The proposals can be made
-
Solely by in-house R&D unit(s) of industrial firms; or
-
Jointly by Industry and National R&D Organizations and Institutions: or
-
Collaborative projects of common interest to the concerned sector/area proposed by a group of industries/users, national research organizations etc.
If the project involves collaboration among two or more partners, the scope of work and responsibilities of each participating establishment in the project should be highlighted. Public Private Partnership is encouraged and all things being equal, this model will be preferred.
2.6 Eligibility criteria for Industry Partner
-
The unit should be registered in India and must fulfill the criteria of Small Business Unit. Here a ‘Small Business Unit’ is defined as an enterprise with not more than 500 employees in R&D.
-
At least 51% of the company’s share should be held by Indian promoters, family & friends and the general public.
-
The Company should have an in-house R&D unit recognized by Department of Scientific and Industrial Research (DSIR)* or have patent rights (National or International) in the proposed activity.
-
Joint ventures and limited partnerships would be eligible for SBIRI support, provided the entity created meets the above requirements.
* (The companies who are in the process of obtaining DSIR recognition or intend to do so may also apply. However final decision on their application will be subject to fulfillment of eligibility criteria. )
2.7 Funding structure
The SBIRI scheme will operate in two phases viz. for establishment of pre-proof of concepts of innovations and for product and process development. In both the phases, projects will be implemented at the industry site. However, in any case the actual project cost would not involve cost of land and building but only capital investment and recurring costs.
SBIRI Phase – I : The following structure of funding will be available to industry depending on the project cost and own resources brought in by the promoter to the project.
-
If the actual project cost is upto Rs. 25 lakhs, 80% of the project cost will be available as a government grant.
-
If the actual project cost is between Rs. 25 lakhs and Rs. 100 lakhs, 50% of the project cost will be available as government grant subject to a minimum of Rs. 20 lakhs and maximum of Rs. 50 lakhs.
-
If the project cost is beyond Rs. 100 lakhs, in addition to the Govt. grant of Rs. 50 lakhs, the unit will be eligible for interest free loan upto 50% of the amount (subject to a limit of Rs. 50 lakhs as loan) by which the total project cost exceeds Rs. 100 lakhs.
SBIRI Phase – II : It is proposed to provide soft loan upto Rs. 10 crores for a project as per its requirement. Soft loan upto Rs. 100 lakhs will carry a simple interest of 1% while the interest rate will be 2% (simple interest) on the amount of loan beyond Rs. 100 lakhs. The role of public R&D institution at this stage too is critical, as many of the projects would continue to require technical support from the public funded R&D institutions. The partner in the public institution at this stage will get the R&D support as grant.
2.8. Management
The scheme is coordinated by the Special Purpose Vehicle (SPV) under the guidance and directions of Department of Biotechnology, Ministry of Science & Technology, Government of India through Apex committee of SBIRI (ACS).
2.9. Monitoring
Each and every project supported under the scheme SBIRI will be monitored by the Internal Monitoring Committee (IMC) to be chaired by emeritus scientist/technocrat in that particular area designated by ACS and having the project investigators from all participating institutions and companies as members of this Committee. The Committee can have 3-4 external experts depending on the requirement. IMC will submit half yearly progress report to ACS for review.
|
