Space tech offers a replicable template, iDEX in defence & BIRAC in biotech working well: PSA Prof. Ajay Kumar Sood

One of your key mandates is technology foresight. When we look at sectors such as deep tech startups, the one big concern is that the number of deep tech startups that are coming out in India is low and that they are not really in the cutting-edge technology segments. Do you see that changing?

So, the good news is that there is an increasing sensitivity to take the deep tech startups on an accelerated path. Our office has helped prepare a deep tech policy (the National Deep Tech Startup Policy), which was up for public consultation and so on… What we would like to do from that is make an action plan, not us, but DPIIT (Department for Promotion of Industry and Internal Trade) and other places, make an action plan to see how it can help. For example, this fund-of-funds that has been announced in this year’s Budget, the question is, can we allocate some of it for deep tech startups? That is a suggestion we have.

And also we have this Rs 1 lakh crore corpus fund, which was announced in last year’s Budget… which is like a loan, a zero per cent loan. Again, the question is how do we include deep tech startups? Because deep tech startups, as you know, need long-term patient funding that (might be) difficult with the venture capital funds and others, because they may not wait for so long (for projects to pick up)… So our goal will be to create instruments. Some of them could be policy decisions. Some of them can be like the fund-of-funds and so on, so that our deep tech startups get stabilised here and they remain with their IP (intellectual property) here… Because it’s not only starting up, it also should be sustainable here… So, for example, in quantum itself, there are now about 35 companies alone, and they are deep tech, obviously. A few of them are big. But many of them are small startups.

So, under the National Quantum Mission, there is a provision to fund startups, and is being done. Now, eight startups have been funded under the quantum mission for these deep tech startups. Similarly, this will happen in the AI mission. In the AI mission, which is now being done by MeitY, one vertical is full on startups. So, my own sense is now that there is very high sensitivity to enhancing deep tech startups, but we have to see that all conditions are favourable (for fostering this).

There is this conversation around this proposed centre for deep tech translation. How do you see this evolving?

So we may not have a centre, per se, because that is just an articulation of the high priority we will give (for this initiative). It can be a centre, it can be a distributed effort, it can be a virtual centre. But what we are saying is there has to be a concerted effort, a body that should focus on deep tech startups in a consolidated manner by looking at all aspects of it. So, it may not be an institute, or any such thing. But it could be a mix of many things, it could possibly be virtual. The intention is to step up the focus on these deep tech startups.

One area where India has done exceedingly well is the national space programme, not just proving that we can do cutting-edge stuff, but that it can be done by the public sector, and at a fraction of the cost benchmarks. And now we are getting in private players who are doing well too. Can we replicate the success of the space sector to other areas, such as deep tech, or nuclear, or EVs?

Yes! The brief answer is, yes.

For example, in defence, there is the iDEX programme (Innovations for Defence Excellence, an initiative of the Ministry of Defence to support innovation and technology development in the defence and aerospace sectors). Actually, iDEX is a huge success. People probably don’t know much about it. iDEX is for the deep tech startups in this space, because they are working on cutting-edge technologies that are required by the strategic sector. It’s not a random thing, it is what is needed (in the sector). Can you come up with a solution (for this problem)? That’s the challenge, and iDEX (is) enormously successful. And, in recent years, the funding for this has been increased.. So, iDEX is a very good example.

Similarly, there is BIRAC (Biotechnology Industry Research Assistance Council, a Department of Biotechnology initiative) to promote startups in the biotechnology sector, The biotech ecosystem has grown in startups because of BIRAC. They have invested probably a few hundred crores over the years, and it has resulted in many times more biotechnology companies coming up. And they are also deep tech projects.

So two examples are there already, iDEX in defence and BIRAC in biotechnology, they are very similar to what we’re doing in space. See, in space, there is an advantage, because the players exactly know what to do. Similarly, in defence too, one knows exactly what is required. But in other areas, we have to also create the demand for future products. So, this is where we will need the support.

Another thing which should happen, is that we have been very good in design, because we have a lot of designers. Over 2,000 or so, or more. But what we need is that we should have designing capabilities on our specifications, not on someone else’s specifications, which means some intellectual thinking has already (been done) somewhere else. So that’s what will make our country a leading product nation. What do you need in a product nation?

Think about it. It’s not manufacturing… Manufacturing, of course, is required, down the line, but it (manufacturing) is not the only thing, because then you will get into the middle-income trap. Because the profits will go somewhere else, and much of the profits are before and after manufacturing. So, what we need is, can we really have a product that is not based on somebody else’s design, but our design. So, I think, that is what the culture we need to bring in. Our youngsters are very, very good, actually. I mean, the design companies that are there in Bengaluru, all our engineers there, are very good, but they are designing for somebody else and to their specifications. Question is, why can’t we have our GCC (global capability centres). And there are some companies that are coming up now, in manufacturing, such as Bharat Forge, the Tatas are doing (some work), Tech Mahindra is there… More has to happen. So, my passion is how to foster that.

In the nuclear sector, with the US Department of Energy specific authorisation (10CFR810) that enables an American company Holtec Int. the possibility of transfer of technology to at least three companies to start off with, how crucial is this development in your view?

See, nuclear energy is inevitable, because if you look at the energy mix, which is required for net zero carbon by 2070, nuclear energy is integral to this energy transition period. You can’t get away from that. Given that, whatever is required: whether it is SMR or whether it is 500 megawatt conventional reactors or any other reactor type, all has to be used now. SMRs have a distinct advantage, that if you need a very focused energy supply, like for data centres, and there could be many more examples, an SMR offers a possible application, even if it is not economical.

So, I would like to say that we need to keep all options open and it’s not a question of ‘or’; rather it should be, ‘and’, when it comes to multiple technologies.

On EV mobility, your department has kept the technology option open, just like you mentioned for the energy sector. But within sections of the government, the conclusion seems to be that battery electrics are the only option. Shouldn’t we pursue a multiple technologies pathway to achieve electrification of mobility?

I completely agree, multiple technologies (is the way forward). Take the fuel cell, green hydrogen, and the fuel cell is a very good option, along with EVs. I’m not saying EV should be (ruled) out, but with EVs, I don’t think that lithium chemistry (for batteries) is the end of the world… Other electro chemistries have to be tried, and are being tried… Solid-state batteries are the ultimate, in my view, because they’ll be the safest, and energy density will be the highest, but there you still have some R&D issues, so it’s still not commercial yet… But that’s where we should work. Fully solid-state batteries, where the electrolyte is also solid. But sodium ion batteries are already an option. Our R&D roadmap (e-mobility R&D Roadmap for India’ released last year) actually tells you which technologies you have to (purse) now, so that you are not import dependent after five years.

And based on that, the good news is that in the Anusandhan National Research Foundation (established through the ANRF Act of 2023 that was notified in February 2024 and is chaired by the Prime Minister), the first mission we have launched is on electric vehicles and the R&D needed. (This is) where we need to be competitive. It’s not a replacement R&D, there’s a difference. Something we are importing, you want to replace that. That is one option. But you have to also know what you will need after five years, three years, because R&D takes that long… So EVs are absolutely essential, but when I say EV, it should be more generic (in technology terms). Fuel cell is one option, and hybrids, and so on… So, options are there. And in my view, a country of our size and our breadth, we need all options.