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Transparency concerns rise over India's deeptech fund
Investors are calling for independent oversight following reports of investment links in the recent allocation.
India's ambitious ₹1 Lakh Cr Research, Development and Innovation fund recently approved ₹2,192 Cr across 22 ventures in its first round of financing. However, this initial allocation has sparked a significant controversy regarding fairness and governance within the sector.
A subsequent report by the Indian Express revealed that 15 of the beneficiary companies had direct ties to seven implementation committee members. Furthermore, these 15 connected companies managed to secure 62 percent of the approved funds, immediately raising concerns among industry observers about concentrated capital.
Beyond the funding distribution, investors have criticized the rollout process itself. According to industry claims, the funding initiative lacked formal public announcements and disproportionately favored startups with existing connections.
In response to these developments, the deeptech ecosystem is pushing for a call to reform. Investors argue that relying solely on basic recusal rules is insufficient and that the sector must demand stricter safeguards and independent oversight to ensure public resources are fairly managed moving forward.
