Department of Biotechnology (DBT) is all set to come out with the Ignition Grants within 6 weeks which is before the year end. The grant is expected to be around Rs.500 crore. The key objective of the Ignition grant is to help get the projects off the ground. It would be disbursed to start-ups which support innovative ideas and research activities from scientists.

While the grant is to test an idea, the Association of Biotechnology Led Entrepreneurs (ABLE) views that the funds could rapidly evolve innovation in the country. “We hope DBT would link the Ignition Grants to Incubation Funds. Hopefully, it would also take into account the conversion of a concept into a functioning prototype and from lab-scale to manufacture, Dr Satya Dash, chief operating officer, Association of Biotech Led Entrepreneurs (ABLE) told Pharmabiz.

The future growth of the biotechnology industry could be spurred only with early stage funding. The technologically powered and innovation driven sector requires the much-needed funds to take the sector to the next level of growth. There are several scientists and doctorate students who are thinking out of the box. With an Ignition Grant, some of their ideas could find the light of the day, he added.

The Ignition Grant can help pursue pre-proof-of-concept studies, mentoring and manufacturing scale-up. In fact, such a grant is viewed as the need of the hour to fund a prototype as well as build an incubation facility, It could kick start many of the proposals put forth by the industry. Further, boost the suggestions offered by mid-level biotech professionals or scientists to promote an idea or a business pitch. The US and European Union have been able to advance swiftly with an Ignition Grant that has helped to constantly feed innovations, stated the ABLE COO.

While the Ignition Grant is largely designed to take an idea forward, it could also be used as a second round of funding to bridge the value gap for start-ups companies, he said.

Currently in India, paucity of funds has been impacting the growth of biotech start-ups. While there have been a couple of sources like the Small Business Innovative Research Initiative (SBIRI) for the small and medium enterprises and the Biotechnology Industry Partnership Programme (BIPP) to support the R&D projects of big companies, there has been no dedicated fund to help an idea take off, so long, the early stage entrepreneurs had to seek the necessary finances from University grants, public and angel funding. But in the US and EU, Ignition grants or the venture capital or Innovative Medicine Initiative are some of the funds earmarked for pre-proof-of-concept studies, he said.

Indian biotech industry, there is on a positive growth curve, with the hubs like the Bangalore Helix, and Hyderabad’s Genome Valley along with substantial contributions coming in from the NCR region, Chennai, Pune and Ahmedabad. With a combination of factors like Ignition Grant, infrastructure, manufacturing policy and streamlined regulatory system along with the right skill-sets could catapult the growth of the sector, said Dr Dash.