Call for Proposals: EVolutionS Program to support Startups in Electric Vehicle Component Manufacturing (India)

The program is uniquely designed with focussed value addition by way of engaging with Ministry of Heavy Industry (MHI), GoI and Automotive Component Manufacturing Association of India (ACMA) as supporting partners to aid the selected startups for pilot demonstration, testing, validation of components & to establish industry connects for speedy translation of EV solutions to market.

The Program is aligned with the initiatives undertaken by Ministry of Heavy Industry (MHI) towards augmenting the localisation of components/sub-systems under Phased Manufacturing Program of PM E-Drive and also Production Linked Incentive Scheme of Advanced Chemistry Cell (ACC-PLI).

Aims

• The program EVolutionS aim to strengthen manufacturing competitiveness by extending support to startups in product development, testing, validation and demonstration. The Program intends to accelerate the development of indigenous materials, components/sub-systems of Electric Vehicle that includes Battery, Motors, Drives, Power Electronics and EV Charging Infrastructure. It is envisaged that the startups working in Electric Vehicle domain have opportunity to translate their prototypes (proof of concepts) into commercially viable products by establishing robust supply chain within the country thereby promoting ATMANIRBHAR BHARAT (self-reliant India) and aligning with the goals of Viksit Bharat.

Scope

• The program aims to accelerates the transition of EV technologies from Proof of Concept/Prototype (TRL 3-4) to commercially viable products (TRL 6-8) by demonstrating prototypes in real-world settings, thereby reducing reliance on imports and strengthening the domestic EV supply chain. The focus is to bridge the gaps by strengthening the EV supply chain & the missing links of Research & Development (R&D), challenges in manufacturing, testing & validation, standardisation of EV components, market entry & commercialization enabling the speedy localization of EV components.
• Hence, proposals are invited from startups, who have demonstrated indigenous capability in developing materials, components/ sub-systems inhouse within the country (reaching TRL 3-4) and meeting specific standards/guidelines issued by Government of India. The Program will provide opportunity to upscale these technologies towards its commercialisation. The focus is to bridge the gap in terms of Research, Development & Deployment (RD&D) manufacturing challenges, functional prototype development & scaling up, pilots, testing & validation, market entry & commercialization. At the end of this, it is expected that the startup will be able to fully localise the manufacturing (i.e. sourcing of materials, stamping, plating, moulding, assembly etc) and also bring down the total cost of manufacturing of these components/sub-systems.
• The call covers development of components for Electric 2, 3 & 4-wheelers (including L5, E-rickshaw and E-cart), e-buses and EV public charging infrastructure. The emphasis of the present call is to accelerate localization of core EV components which are at Technology Readiness Levels (3-4) for their commercialisation at fast-track mode i.e. within 36 months. The final deliverables for all these projects should demonstrate industrial grade materials, components/sub-systems (TRL 6-8) or beyond for adoption by manufacturing industries.
• It is expected that this Program can significantly bolster startups and Make-in- India in this space thereby strengthening the capacity and capability of Indian Industry for long term sustainability and end-to-end value creation across the value chain. This initiative aims to drive the development of indigenous products and technologies at fast pace. The Program aligns with the vision of ATMANIRBHAR BHARAT (self-reliant India) and contributes to the goals of Viksit Bharat. The program is focused on the rapid integration of advanced technologies into EVs, prioritizing localization.

Program Structure 

• The Startup will be selected by Program Advisory Committee set up by Department of Science and Technology (DST), GoI, which will steer the Program by review, selection of startups and monitoring of overall program. EVolutionS Program TBI Partners (EPIP) will pitch to the selected Startups and Startups will pick any of the TBI from EPIP for receipt of the grant, incubation through EPIP as per the norms of the DST.

Funding Information

• This Program spanning 36 months will be fully funded by DST with funding support of Rs.50 lakhs (as Rs. 20 lakhs as grant-in-aid& remaining Rs. 30 lakhs with 2-3% equity/equity linked instruments i.e. Compulsory Convertible Debentures) to about 50 Startups through DST’s strong network of TBIs, towards R&D, product development, testing, validation, market-entry & commercialization.

Project Duration

• The funding is provided for a period of up to 36 months.

Expected Outcomes

• The program will support start up industry to develop components aligned with Phased Manufacturing Program (PMP) under PM E-Drive Scheme and Advanced Chemistry Cell (ACC) PLI Scheme of MHI.
• The Program will accelerate translating prototype/PoC(TRL 3-4) into commercially viable products, reaching higher TRL (6-8) within short span of time thereby addressing domestic needs of EV industry. It is expected that startups will be able to localise the manufacturing and also bring down the total cost of manufacturing of these components/sub-systems
• This program will enable startups to generate IP, and further commercialization of the product in the form of licencing etc.
• Through standardisation of critical EV components, the program will accelerate in large scale implementation of EVs in the country.  The PoC and validation activity will be undertaken to verify the concepts of standardisation, which will help indigenous manufacturing of the components for scaling up.
• The program will be evaluated by an appointed committee (Program Advisory Committee) who will mentor these startups to successfully graduate at every phase and launch their products and receive expression of interest from manufacturers / industry thereby creating market for their products.

Ineligible Projects

• Basic research Projects below TRL 3
• Exploratory research/project studies
• Project having low element of novelty
• Project with the same objectives which has already been supported by other Govt Ministries.

Eligibility Criteria

• The eligibility criteria for a startup to apply for the EVolutionS Grant are as follows:
  • A startup, should be registered by DPIIT at the time of application. If not registered, funds will only be released after successful registration by DPIIT.
  • Shareholding by Indian promoters in the startup should be at least 51% at the time of application to TBI for the scheme, as per Companies Act,2013 and SEBI (ICDR) Regulations, 2018
  • Only for ‘Indian Companies’ defined as ‘holding company registered in India’, and ‘IP resides in India’, and ‘majority owned in India’.
  • Shareholding by Indian promoters in the startup should be at least 51%, as per Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.
  • Startup must have reached to the level of proof of concept/ technology validated in lab (TRL 3-4) to develop a product or a component with market fit, viable commercialization, and scope of scaling. The project leading to development of a device/prototype with TRL 6 and above, and having potential for commercialization will be preferred for financial support. Basic R&D proposal leading to only research publications may not be considered under this call. Besides for TRL level requirement, Project Leader (PIs) are advised to look into Technology Readiness Level (TRL) for implementation of the technology at Annexure II.
  • Startup with proposed objectives and deliverables should not have received funding support in grant mode not more than Rs. 20 lakhs in last 5 years from any other Government funding programs for startups.
  • EVolutionS support can be provided only once to any startup.
  • The startup should be using technology in its core product to solve the problem being targeted.
  • The Project leader (PI) can submit only one proposal against this call. Submission of more than one proposal from a PI would be liable to be disqualification of all the submitted proposal.
  • Project Leader:
    • Every proposal must clearly identify a Project Leader who will take responsibility for the technical and managerial aspects of the project execution.
    • The Project Leader must be technically qualified to undertake the project. The Project Leader must have completed basic undergraduate training in any discipline
    • In the event that the proposal is shortlisted for presentation in front of Selection Committee(s), the Project Leader will be required to present the case for support. In the event that proposal is shortlisted for funding support, the Project Leader will be required to sign the project agreement.
    • Project Leader must be a shareholder in the applicant company.
  • As per the recommendation of the Program Advisory Committee (PAC), Grant can be terminated by DST at any stage if the Grant has not been properly utilized or appropriate progress has not been made. Unspent balance with the startup should be refunded to DST through TBI.
  • Any dispute on any matter related to the implementation of the project, the decision of Competent Authority, DST, shall be final and binding on the Implementing Agency.
  • DST reserves the right to modify these terms and conditions governing the grant-in-aid from time to time.

For more information, visit DST.