India funds small-time biotech ventures through unique scheme SBIRI

SBIRI supports high-risk pre-proof-of-concept research and late stage development in small and medium Indian companies.

India’s initiative to support upstarts biotech ventures has received overwhelming response from small and medium bio enterprises in the country at a time biotech is facing acute shortage of funding due to economic downturn across major markets.

Small Business Innovation Research Initiative (SBIRI) launched by the Department of Biotechnology’s (DBT), under the Ministry of Science and Technology has extended its assistance to more than 50 companies during the last more than two years.

SBIRI was launched by the government for funding early stage, pre-proof of concept research in the field of biotech under the National Biotechnology Development Strategy. The scheme provides early stage funding to enable scientists in private industries for high risk, innovative and ready-to commercialisation product proposals.

SBIRI 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 aims to strengthen existing private units with in-house innovative R&D and to create opportunities for starting up technology-based or knowledge-based businesses in biotechnology and to stimulate technological innovation and product commercialization. The department also uses the scheme to support public-private partnership model between industry and public funded institutions.

Further, SBIRI encourages other smaller businesses to increase their R&D capabilities and capacity  and uses private industries as a source of innovation and thereby fulfil government objectives in fostering R&D.

To be chosen by SBIRI for funding the companies 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 funding structure of SBIRI scheme operates in two phases viz. for establishment of pre-proof of concepts of innovations and for product and process development. In SBIRI Phase I, 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 and 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 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. 

Indian companies which have availed of SBIRI

The companies which have availed of the scheme successfully included ABL Biotechnologies Private Limited, Chennai; Actis Biologics Private India Limited, Mumbai; Ara Healthcare Private Limited, Gurgaon; Bejo Sheetal Seeds Private Limited, Jalna; Bharat Biotech International Limited, Hyderabad; Bharat Serum and Vaccines Limited, Mumbai; Bharavi Laboratoires (P) Limited, Bangalore; Bhat Bio-Tech India (P) Limited, Bangalore in collaboration with National Institute of Malaria Research New Delhi, Bigtec Private Limited, Bangalore; Bioseed Research India Private Limited, Hyderabad in collaboration with Shriram Bioseed Genetic India Limited, Hyderabad and International Centre for Genetic Engineering and Biotechnology (ICGEB), New Delhi, Bioseed Research India Private Limited, Hyderabad in collaboration with Shriram Bioseed Genetic India Limited, Hyderabad and International Centre for Genetic Engineering and Biotechnology (ICGEB), New Delhi, and Bisen Biotech & Biopharma Pvt. Ltd, Gwalior in collaboration with Jiwaji University Gwalior.

Other companies which have availed the scheme successfully are Customised Technologies (P) Limited, Bangalore; Cadila Pharmaceuticals Ltd, Ahmedabad; Excel Matrix Biological Devices Private Limited, Hyderabad in collaboration with National Institute of Immunology, New Delhi; Frontier Lifeline Private Limited, Chennai; Healthline Private Limited, Bangalore; Hydrolina Biotech Private Limited, Chennai; IMGENEX India Private Limited, Bhubaneswar in collaboration with Institute of life Sciences, Bhubaneswar, Labland Biotech Private Limited, Mysore; Lead Invent Technologies Private Limited, New Delhi in collaboration with Indian Institute of Technology, New Delhi, Lifecare Innovations Private Limited, Gurgaon; Maharashtra Hybrid Seeds Co. Limited, Jalna in collaboration with Indian Institute of Science, Bangalore, Maps (India) Limited, Ahmedabad, Mediclone Biotech Private Limited, Chennai; Millennium Exports, Chennai in collaboration with Aquaculture Foundation of India, Chennai; Multiplex Bio-Tech Private Limited, Bangalore; Myko Tech Private Limited, Goa in collaboration with Asthagiri Herbal Foundation, Chennai; Navya Biologicals Private Limited, Bangalore; Nuziveedu Seeds Limited, Hyderabad in collaboration with International Centre for Genetic Engineering and Biotechnology

(ICGEB), New Delhi; Oriental Aquamarine Biotech India Private Limited, Coimbatore, in collaboration with National Centre for Aquatic Animal Health, Cochin University of Science and Technology (CUSAT), Kochi; Oxygen Healthcare Research Pvt Ltd Ahmedabad; Pelican Biotech and Chemical Labs, Alapuzha, Kerala; Poseidon Biotech, Chennai; Privi Organics Private Limited, Navi Mumbai; Proalgen Biotech Ltd, Chennai; Rasi Seeds Private Limited, Attur, Tamil Nadu, in collaboration with Tamil Nadu Agricultural University (TNAU), Coimbatore; Relisys Medical Devices Limited, Hyderabad; Scigenics Biotech (P) Limited, Chennai; Span Diagnostics Limited, Ahmedabad; Sri Surya Anjaneya Industries, Vishakhapatnam; Sri Biotech Laboratories Private Limited, Hyderabad, in collaboration with University of Hyderabad, Hyderabad; T. Stanes & Co. Private Limited, Coimbatore, in collaboration with PSG College of Technology, Coimbatore; USV Limited, Mumbai, Virchow Biotech (P) Limited, Hyderabad; Yashraj Biotechnology Limited, Navi Mumbai and Zenotech Laboratories Limited., Hyderabad.