IndiaAI startups left waiting as agreements stall; over ₹159 crore on hold amid IP unease

Startups selected for the IndiaAI mission are in limbo as government agreements remain unsigned for nearly one-half of them, putting on hold over ₹159 crore earmarked for essentials such as salaries and data preparation. The holdup affects non-compute funding that companies say they need to retain teams and prepare datasets while they build.

Founders also report unease over the intellectual property rules attached to the government support. Under the program, 40% of funds are grants and the rest are recoverables (with a 10% equity cap). Founders say the package covers less than one-fifth of what their projects actually require.

Ongoing talks about who owns the technology have added to the uncertainty and operational hurdles for awardees. Despite the However, founders say scaling up will remain difficult until the agreements are signed and funding terms are clarified.