Government Launches ₹1 Lakh Crore Fund for Research Commercialisation

The government has announced a ₹1 lakh crore fund to help take research projects from laboratory to commercial scale, with the entire allocation reserved for private sector companies, according to Tarun Kapoor, Advisor to the Prime Minister.

Speaking at the 65th SIAM Annual Convention, Kapoor emphasised that innovation must now happen in India rather than Indian talent supporting innovation abroad. He said the fund would operate at Technology Readiness Level 4 and help develop products to commercial scale through private fund managers.

National Research Foundation Established

The government has also established the Anusandhan National Research Foundation (ANRF) to oversee research activities across the country and facilitate funding. Kapoor noted that India has nearly 300 government research organisations, alongside leading educational institutions, that many people may not know about.

He called on industry to partner with the government in research and development, saying the private sector must now guide and lead innovation efforts.

Focus on Global Markets

Whilst praising the automotive industry's domestic performance, Kapoor stressed that companies must now think globally and develop products for world markets. He said no industry could survive by focusing only on domestic demand, despite India's growing market as income levels rise.

The advisor highlighted that India possesses one of the world's largest technical workforces with the brain power to drive innovation, but this capability needed to be harnessed domestically.

Electric Vehicle Transition

On sustainable mobility, Kapoor acknowledged that India had been slow in introducing electric vehicle products but said a wider variety was now entering the market, which would accelerate the transition.

He emphasised the importance of transitioning last-mile delivery vehicles in cities to reduce urban pollution, describing this as critical for moving from fossil fuel-based transport to zero-emission alternatives.

Biofuel Success and Future Plans

The government achieved 20% ethanol blending with industry support, which Kapoor described as a success story that needed to be sustained. He thanked SIAM and manufacturers for supporting this initiative despite initial concerns about vehicle compatibility and efficiency.

The next step involves flexible fuel vehicles, with some companies already beginning manufacturing. Kapoor said fuel availability must match vehicle development to ensure customer acceptance.

Compressed Natural Gas Growth

CNG adoption has shown good progress, with prices remaining lower than diesel or petrol. Kapoor predicted LNG prices would decrease over the next few years, making CNG a sustainable long-term option.

The government aims to establish 5,000 compressed biogas plants, though current commissioning stands at only around 150 plants. He described this sector as poised for rapid growth once technology stabilises.

Hydrogen Future

Recent tenders for green hydrogen supply to fertiliser plants showed competitive pricing, with India expected to emerge as an export hub for hydrogen and ammonia. Large green hydrogen manufacturing plants are expected to be commissioned within the next few years.

Component Manufacturing Priority

Kapoor stressed the need for complete value chain development in India, including component manufacturing and materials production. He referenced concerns about critical materials like rare earth elements and called on industry to identify areas requiring government intervention.

The advisor said companies should inform the government about critical areas in machinery, capital goods, components and materials where support is needed, promising government backing for such initiatives.