Introduction
In a groundbreaking move, the Indian Railways has set the stage for a revolutionary transformation in the railway sector through its "Startups for Railways" initiative to upscale safety and operational efficiency through leveraging indigenous innovation in collaboration with entities such as Startups, MSMEs etc.
What is the startups for Railways scheme?
The "Startups for Railways" scheme is an initiative launched by the Indian Railways with the goal of fostering innovation and incorporating cutting-edge technologies into the railway sector to upscale safety and operational efficiency. The scheme is designed to encourage collaboration with various entities, including startups, MSMEs (Micro, Small, and Medium Enterprises), innovators, and entrepreneurs.This scheme was launched by Indian railways on 13.06.2022 and as on 9-1-24 , a total of 1251 entity registered on innovation portal and 23 projects value of Rs.43.87 crore has been awarded. Type of entity registered on innovation portal are as follows:
| Type | Number |
|---|---|
| Startups | 248 |
| Individual Innovators | 671 |
| MSMEs | 142 |
| R&D Organizations/Institutes | 58 |
| Proprietorship/Partnership Firms/Company/ LLP/JV/Consortium | 47 |
| NGOs | 19 |
| Others | 66 |
| Total | 1251 |
Objectives of Startups for Railways
The key objective of "Startups for Railways" scheme is as follows:
a) Develop cost-effective, implementable, scalable solutions, functional prototypes, and innovative products to address Quality, Reliability, and Maintainability issues within Indian Railways (IR). Implementation of these solutions and products is intended to enhance the specified usage and overall performance of IR.
b) Harness new and innovative technologies created by entrepreneurs and startups to improve operational efficiency and safety across the Indian Railways network.
c) Foster an "Innovation Culture" in the country, encouraging collaborative creation and innovation within the Railway sector, promoting co-creation and co-innovation practices.
Key Highlights of the "Startups for Railways"
Grant Provision: Innovators stand to receive grants of up to Rs. 1.5 Crore on an equal sharing basis, with milestone-wise payments.
Online Process: The entire process, from the presentation of problem statements to the development of prototypes, is conducted online, ensuring transparency and adhering to defined timelines.
Prototype Trials: Prototypes developed under this initiative will undergo trials within the Railways system.
Funding for Deployment: Successful performance of prototypes will lead to enhanced funding for scaling up deployment.
Selection Process: The selection of innovators follows a transparent and fair system, managed through an online portal inaugurated by the Minister of Railways.
Intellectual Property Rights (IPR): Innovators retain exclusive ownership of the developed Intellectual Property Rights (IPR).
De-centralization: The entire product development process is decentralized at the divisional level to prevent delays.
Eligible Organizations / Beneficiaries
Entity eligible under scheme is as follows:
a) Startups: As per the definition and recognition by the Department for Promotion of Industry & Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India.
b) Indian Companies: Any company incorporated under the Companies Act 1956/2013, primarily categorized as a Micro, Small, and Medium Enterprise (MSME) as defined in the MSME Act, 2006.
c) Individual Innovators and R&D Institutions: Encouraged to apply for participation in the initiative.
d) Partnership Firms, Companies, or LLPs: Incorporated under relevant laws, with the note that support in the form of a grant will not be provided in such cases. The scaling-up costs will be the responsibility of the respective firm.
Challanges/Problem statement
List of Identified Problem Statements under the scheme by Indian railways is as follows:
i. Broken Rail Detection System
ii. Rail Stress Monitoring System
iii. Headway Improvement System for suburban section interoperable with Indian Railways National ATP system
iv. Automation of Track Inspection Activities
v. Design of superior Elastomeric Pad (EM Pad) for Heavy Haul freight Wagons
vi. Development of on-line Condition Monitoring System for traction motors of 3-phase Electric Locomotives
vii. Light-weight wagon for transporting commodities like Salt
viii. Development of analytical tool using digital data for improving passenger services
ix. Track Cleaning Machine
x. App for post-training revision & self-service refresher courses
xi. Use of Remote Sensing, Geomatics, and GIS for bridge inspection
Above list is indicative in nature and one must check live challanges/ Problem Statements on dedicated portal.
How to apply for Startups for Railways
- The entire process, from initiation to completion, will be seamlessly conducted online through a dedicated platform known as the Indian Railway Innovation Portal.
- The Efficiency & Research Directorate of the Railway Board is designated as the nodal directorate for overseeing the policy implementation and execution of the process.
- The Problem Statements, inviting technology proposals from Innovators, will be made accessible to the public by uploading them on the IR Innovation Portal.
- During Stage-1 of the process, Innovators are required to submit a duly filled format, specifically denoted as IP Form-1. This submission should be accompanied by detailed proposals outlining their innovative solutions.
- The Problem Statements that have been uploaded on the Portal will be compiled by the Efficiency & Research (E&R) Directorate after a period of 30 days from the date of uploading.
- The Project Evaluation Committee (PEC) will instruct the shortlisted Innovators to provide complete details necessary for a comprehensive technical and financial evaluation of the proposed product/solution.
- Innovators are required to submit a completed format, designated as IP Form-2, along with detailed proposals as part of their submission process.
- This evaluation process, inclusive of the techno-commercial presentation before the PEC, will be completed within 15 days from the date of the said presentation.
Selection of Innovators
- The selection of Innovators will be carried out through an open, transparent, and fair process.
- Upon acceptance of a proposal by the Project Evaluation Committee (PEC), the Efficiency & Research (E&R) Directorate will compile an appreciation note to Chairman & CEO, for information and approval.
- Following the approval of the proposal, the selected Innovator will be required to proceed with signing a contract agreement for the project.
Funding mechanism
- The funding scheme under the "Startups for Railways" initiative operates on a cost-sharing basis, with an equal sharing proportion of 50:50 between Indian Railways (IR) and the Innovator.
- This implies that both parties contribute equally to the project costs. The maximum grant amount that can be provided is up to Rs. 1.5 Crore per project.In instances where the total project cost surpasses Rs. 3.0 Crore, the funding from Indian Railways (IR) will be capped at a maximum of Rs. 1.5 Crore.
Intellectual Property
The "Startups for Railways" initiative reinforces the principle that the ownership of Intellectual Property Rights (IPR) generated under the project will be exclusively held by the Innovator.
Indian Railways retains Government Purpose Rights (GPRs). These GPRs confer upon Indian Railways an exclusive, transferable, and irrevocable license to use the intellectual property for internal consumption or manufacturing purposes.
A specific clause on royalty will be incorporated, specifying a fee of up to 2% of the supply cost per manufactured unit. Additionally, there will be a cap on the total maximum royalty payable, set at up to 10 times the cost incurred by the Innovator in developing the product, technology, or intellectual property.
