Question : Setting Up of Innovation Fund by CSIR

(a) whether the Council of Scientific and Industrial Research (CSIR) is in the process of setting up an innovation fund, worth Rs. 400-500 crore to invest in early stage startups and pro-innovations;
(b) if so, the details thereof;
(c) whether CSIR is grappling with a crisis of trying to generate more revenues from its portfolio of inventions as well as encouraging its staff scientists to become entrepreneurs and start companies of their own;
(d) if so, the details thereof; and
(e) the time by when the innovation fund is likely to be set up?

MINISTER OF SCIENCE AND TECHNOLOGY AND EARTH SCIENCES

(DR. HARSH VARDHAN)

(a)&(b) Yes, Madam. Governing Body, CSIR had approved setting up an Innovation Fund with about Rs. 400 crore from its external earnings to support early stage start-ups.

(c)&(d) CSIR always endeavours to generate more revenues from its knowledgebase including its portfolio of innovations and it is a continuing effort.

Union Cabinet has approved a scheme in 2009, permitting the researchers to have an equity stake in scientific enterprises / spin offs while in professional employment with their research and academic organizations (Universities, academic and research institutions). CSIR is implementing the scheme. CSIR is not making any additional efforts to encourage its scientists to start companies.

(e) CSIR had constituted an Expert Committee to develop the rules and regulations as well as guidelines for expending the funds. The Committee had recommended to divide the fund into two equal components to support (i) early stage start-ups and (ii) nurturing of early stage ideas. The committee further recommended to set up separate independent company(ies) to professionally manage the fund. CSIR is examining the finer details of setting up such companies including other alternative mechanisms to utilize the funds. Based on the final decision, the proposal shall be processed for appropriate approvals. It would take about 6 months to operationalise the funds.


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