The Indian Railways has launched an Innovation Policy to leverage innovative technologies from startups and entrepreneurs. It aims to improve operational efficiency, safety, and develop low-cost and reliable products. The policy provides seed funding up to Rs. 1.5 Cr for startups to develop functional prototypes. It outlines a process where problem statements are posted, proposals are submitted and evaluated, shortlisted startups collaborate with Railways to develop prototypes, and successful solutions are scaled up for use across Railways. The intellectual property is owned by startups but Railways retains government use rights. Eleven initial problem statements have been identified covering areas like broken rail detection, rail stress monitoring, and track cleaning machines.

1. Innovation Policy
for Indian Railways

2. Innovation Policy for Indian Railways
• Launched by Hon’ble Minister of Railways, Shri Ashwini Vaishnaw on
13/06/2022
• Dedicated portal https://innovation.indianrailways.gov.in
• Purpose:
• Leverage innovative technologies Developed by Indian Startups / MSMEs /
Innovators / Entrepreneurs
• Operational efficiency and Safety of Indian Railways
• Low-cost User-friendly Reliable products
• To address Quality, Reliability & Maintainability aspects of IR

3. Preface
• India is witnessing an exponential growth in technology sector such as IoT, big
data analytics, Shape memory alloys etc.
• Indian Railways looking to harness technological, economical and operational
benefits offered by next-gen innovative and emerging technologies
• Major constraint of capital inadequacy in Startup ecosystem,
• Seed fund
• Proof of Concept - developmental stage
• Innovation Policy for Indian Railways aims to provide necessary seed fund
support, of up to Rs. 1.5 Cr to the Startups showing capability, intent and
promise to produce functional prototypes, based on new innovative concepts,
for potential use on Indian Railways

4. Objective
To develop cost-effective, implementable, scalable solutions, functional prototypes
and innovative products for
addressing Quality, Reliability and Maintainability related issues of IR and
improving the same through specified usage of the developed products and
innovative solutions by IR.
Leveraging new innovative technologies, developed by entrepreneurs and Startups,
for improving Operational efficiency & Safety on Indian Railways
Promoting “Innovation Culture” in the country for co-creation and co-innovation in
the Railway Sector

5. Policy Framework
• Complete process, from initiation to completion, online through a dedicated Indian
Railway Innovation Portal (https://innovation.indianrailways.gov.in)
• Efficiency & Research Directorate - Nodal directorate
• Identification of Technological needs of IR in consultation with all stakeholders (all
Directorates of Railway Board, Production Units, Zonal Railways, RDSO etc.)
• Transforming requirement of Indian Railways into Problem Statements
• Problem Statement shall be uploaded on IR Innovation portal
• Seeking technology proposals from Innovators
• Ministry of Railways to support Indian Startups/MSMEs/Entrepreneurs/Innovators
with funds for development of innovative products & low cost solutions for IR

6. Eligible Organizations
a) Startups, as defined and recognized by DPIIT - Department for Promotion of
Industry & Internal Trade, Ministry of Commerce and Industry, GoI.
b) Any Indian MSME Company under the Companies Act1956/2013 and as
defined in the MSME Act, 2006.
c) Individual innovators and R&D institutions are also encouraged.
Any partnership firm, company or LLP incorporated under relevant laws.
i. Support in form of Grant will not be given in this case.
ii. Cost of scaling-up will be borne by the firm

7. Problem Statement D+0
• Details of Technical and functional requirements
• Application environment
• Categorization of intended use as vital or non-vital or safety-critical and non
safety-critical
• Expected service life
• Access for maintenance requirements
• Assured quantity of developed product to be supplied in scaling-up stage
• Regulatory compliances involved (if any)
• Other details including specifics pertaining to third party interfacing of the
product/technology, being developed, with the existing IR infrastructure or
assets

8. Stage-1 D+30 D+45
• Duly filled in format (IP Form-1) shall be submitted by the Innovators along
with the detailed proposals
• Submission of the proposals within 30 days of uploading Problem Statement
• Preliminary evaluation and assessment by PEC (Proposal Evaluation
Committee)
• Within 15 days
• Based on:
• Functionality • Economic viability
• IR’s experience with similar
technologies/products already in use on IR
and other railway systems in country
• educational background and R&D capability
of Innovator(s)
• cost • scalability options
• criticality in terms of interfaces with existing
3rd party systems on IR
• existing supply chain capacities that can
support the technology during mass
production and wider proliferation on IR

9. Stage 2 D+60 D+75
• Shortlisted Innovators to submit complete details within 15 days
• Details of the Cost of development
a) Expenditure on proving out the concept
b) Cost of building Prototype(s)
c) Cost of Prototype testing & validation on test beds (or in virtual environment / simulation
/ analysis etc.)
d) Certification Costs, if any
e) cost arising out of regulatory and statutory compliances
• Clear linkage between Project deliverables, timelines (Milestones) and
proportionate expenditure estimated in the project
• Detailed evaluation of the techno-commercial proposal by PEC within 15 days

10. Selection of Innovators for collaborative
working with IR D+90 = X
• Open, transparent and fair process
• Based on comprehensive techno-commercial evaluation of the Innovator’s
offer and joint deliberations with Innovator’s team
• If proposal is acceptable, approval of Board and issue of Letter of Acceptance
within 15 days
• Signing of Contract Agreement
• Detailed reasoning in case of rejection of proposal
• Rejection of a proposal for one Problem Statement does not disqualify the
Innovator from submitting proposals for other Problem Statements

11. Funding Scheme
• Cost Sharing Basis
• Equal proportion i.e. 50:50 by IR and Innovator.
• Maximum amount of grant of up to Rs. 1.5 Cr can be given per Innovator.
• If total cost of project exceeds Rs 3.0 Cr, the funding from IR shall be limited to
a maximum of Rs. 1.5 Cr only.
• The exact quantum of grant and installments for each Innovator shall be
decided by the PEC, based on its evaluation
• No earnest money will be charged from the Innovators for participation in this
scheme

12. Project Execution
• Nomination of a Railway Division by PEC
• Considering the location of Innovator and also relevance of the product/technology
• for carrying out Proof of Concept trials and subsequent extended trial
• Nomination of 2 JAG officers by DRM
• For handholding and field support to the Innovator
• Necessary support in terms of infra, data, manpower etc. on “Best Effort Basis”
• DRM shall have full powers to release funds
• Pre-decided milestones
• like development of prototype, testing and validation of prototype etc.
• minimum of 4
• maximum amount of disbursement at any milestone shall not exceed Rs. 25 lacs

13. Project Execution
• Field Performance Report by DRM confirming successful deployment & performance
of prototypes in field X+3months = Y
• Scale up decision by PEC Y+15
• Approval/sanction for scaling-up by ED(E&R)/Railway Board Y+15+30 = Z
• Transfer to the nominated Railway Division(s) for further execution, placement of
order by ZR/Divn/PU. Z+3months
• Monitoring and field evaluation. Final report of extended trials. Z+3m+12m
• Total duration of field trial (extended trials) shall in no case exceed 12 months
• PEC shall hand over the trial report, extended trial reports, technical & user
specifications of product, learnings from the project etc. to the concerned Board
Member for taking decision regarding adoption or otherwise of the developed
product/technology for regular use on IR network

14. Intellectual Property
• IPR owned exclusively by the Innovator
• IR shall retain Government Purpose Rights (GPRs)
• exclusive, transferable, irrevocable license to use the IP for internal consumption or
manufacture either directly or through sub-contractor for use of IR
• liable to pay royalty fee for use of GPRs up to 2% of the supply cost per
manufactured unit with a cap on total maximum royalty payable of up to 10 times
the cost incurred by the Innovator, in developing the product/technology

15. 11 Identified Problem Statements
1. Broken Rail Detection System
2. Rail Stress Monitoring System
3. Headway Improvement System for suburban section interoperable with Indian Railways National ATP system
4. Automation of Track Inspection Activities
5. Design of superior Elastomeric Pad (EM Pad) for Heavy Haul freight Wagons
6. Development of on-line Condition Monitoring System for traction motors of 3-phase Electric Locomotives
7. Light-weight wagon for transporting commodities like Salt
8. Development of analytical tool by using digital data for improving passenger services
9. Track Cleaning Machine
10. App for post-training revision & self-service refresher courses
11. Use of Remote Sensing, Geomatics and GIS for bridge inspection

16. Important Links
• Innovation Policy https://innovation.indianrailways.gov.in/Docs/IP.pdf
• Process Flow https://innovation.indianrailways.gov.in/Docs/ProcessFlow.pdf
• Indicative Timelines https://innovation.indianrailways.gov.in/Docs/IndicativeTimeline1.pdf
• Problem Statements https://innovation.indianrailways.gov.in/Home/Challenges
Thank You