CSIR to take equity stakes in companies

Council of Scientific and Industrial Research (CSIR), the industrial research and development organisation under the central government, plans to take equity stakes in some companies to whom it is lending technological innovations.

Samir K Brahmachari, director general, CSIR and secretary, department of scientific and industrial research, Government of India, told DNA, “We will take stakes in smaller companies.

We have received the government’s approval for it and are already negotiating with the companies. Many are in the pipeline in the life sciences and energy sectors, which have great potential.”

CSIR has been charging fees and royalties for its technology transfers for commercial use to private companies but hasn’t taken stake in any company.

Recently its agreement terms include putting up its logo in the projects which have used its technologies.

Brahmachari said, “The technology that we transfer to Indian companies is easily being taken away by international mergers and acquisitions. We have decided to take equity stake so that we have a say in it.”

At present it is raising its operational capital of $4-5 million to hire the senior management for the venture.

For the time being the venture, which will take up the transactions, is named CSIR-Tech.

“We will take less than 50% stake and for this SBI Capital Markets is raising the corpus for the war chest,” he said.

CSIR is also developing a 93-100 seater national civil aircraft for regional transport which will be undertaken through a joint venture.

A committee will come up with the design and other details in a year’s time. The first prototype will be built in 4-5 years at a cost of Rs 4,000-5,000 crore.