Startups plead with DoT to continue telecom R&D finance scheme

Startups in the telecom sector are urging the Department of Telecommunications (DoT) not to discontinue the Digital Communication Innovation Square (DCIS) scheme, which provides crucial research and development (R&D) funding support. The scheme, which was initiated in 2021, focuses on supporting domestic design-led telecom companies in the private sector.

Despite reaching milestones, certain companies have not received grants from the DoT in the last six months, leading to concerns about the potential closure of the scheme. In a letter to telecom secretary Neeraj Mittal, the Voice of Indian Communication Technology Enterprises (VoICE) emphasized the importance of continuing the DCIS scheme to sustain R&D initiatives and product development activities for over 50 companies.

The scheme has been instrumental in supporting 66 startup beneficiaries, including companies like Tejas Networks, Sterlite Technologies Limited, and Tata Consultancy Services (TCS), as well as smaller firms like Inventum and Infinity Labs. The funding provided under the DCIS scheme ranges from Rs 50 lakh for startups to Rs 2 crore for micro, small, and medium enterprises, with the potential to go up to Rs 10 crore based on the project.

VoICE highlighted the long gestation periods of R&D in the telecom sector and the need for sustained support to retain expertise and resources. The body also raised concerns about the potential negative impact on companies if the R&D support through DCIS is discontinued.

The government is expected to evaluate the future of the scheme and may consider changes to involve more companies. With the recent budget allocating funds for long-term R&D across sectors, the telecom startups are hopeful that the DCIS scheme will be allowed to continue and even strengthened to support India’s global leadership in new technology segments.