Up to ₹50 Crore for Early-Stage Drug Discovery: PRIP’s New Track for Startups and MSMEs
On 30 September 2026 the Department of Pharmaceuticals opened a dedicated PRIP track for startups and MSMEs working on new drug molecules at the earliest stages. Up to ₹50 crore per company, but you need institutional investors to put in at least a quarter of the project cost.
If you are building a new drug molecule, the hardest money to find is the money for the first few years, before there is anything to show a clinical investor. On 30 September 2026 the Department of Pharmaceuticals (DoP) announced a track built for exactly that stage.
The new discovery track sits inside the Promotion of Research and Innovation in Pharma MedTech sector (PRIP) scheme, which has a total outlay of ₹5,000 crore. It offers startups and MSMEs up to ₹50 crore per company, project or portfolio of projects to take early discovery work forward.
The terms at a glance
- Support: up to ₹50 crore per company, project, or portfolio of projects.
- Co-funding: at least 25% of the project cost must come from bona fide institutional investors.
- Who: startups and MSMEs working on a New Chemical Entity (NCE) or New Biological Entity (NBE).
- Starting point: projects at Technology Readiness Level (TRL) 1, 2 or 3.
- How far it takes you: the Department will support projects to progress to higher TRLs, but not beyond TRL 6.
Why a separate track
PRIP already had an early-stage track, with assistance of up to ₹5 crore, and a later-stage track that goes up to ₹100 crore. A senior official told KNN that the new track is meant to provide risk capital to startups and MSMEs and to encourage institutional investors to come in at an earlier stage of drug development. In plain terms: a ₹5 crore cap does not stretch far when the project is a new molecule, and the later-stage track starts only once you are further along. The discovery track fills the space between them.
The catch: you need investors first
The 25% co-funding rule is the part to plan around. The money from the Department is not available on its own; a quarter of the project cost has to come from institutional investors. That means a term sheet or a clear investor commitment is part of the application story, not something you sort out afterwards.
The reports do not say which kinds of investors count beyond “bona fide institutional investors”. Ask the PRIP team on the portal before you build a plan around a particular fund.
What the first round tells you about competition
The first PRIP round approved 41 projects with about ₹1,600 crore in financial assistance, expected to bring in about ₹3,020 crore of private investment and about ₹4,620 crore of total R&D. Of those 41 projects, 12 were early stage and 29 later stage, and 19 came from startups and MSMEs while 22 came from large companies. Participants named in the coverage include Biocon, Bharat Biotech, Sun Pharma, Wockhardt and Mankind Pharma, so a small team is being evaluated alongside well-resourced names.
Evaluation of the remaining first-round applications is still under way, with results expected over the coming month.
Who can apply
The general PRIP eligibility is stricter than “any pharma startup”. For the current round, our programme page lists these conditions:
- A company, LLP or registered partnership firm in India. One Person Companies, Section 8 companies and sole proprietorships are excluded.
- For the early-stage track, a valid DPIIT startup recognition certificate or Udyam registration.
- Projects within TRL 1 to 6. Projects at TRL 7 or above are not eligible.
- Academic institutions and individuals cannot apply directly, though ecosystem enablers can submit on behalf of projects.
These come from the second-round concept-note programme, so confirm that the same conditions apply to the discovery track when you read the call.
What is still unclear
The announcement says applications are invited in the second round of PRIP, but the coverage we reviewed does not give a closing date or say exactly how the discovery track is submitted. Treat the official portal as the only source for those details.
What to do now
- Check your TRL honestly. If your molecule is already past TRL 3, the later-stage track may be the better fit.
- Start the investor conversation early. The 25% share has to be committed by institutions, and that takes longer than writing the proposal.
- Get your registration in order. DPIIT recognition or Udyam, and a clean incorporation record, are checked first.
- Read the concept-note process. The second round is structured around concept notes, so that is the first document you will write.
Our programme page for the second round is here: PRIP Call 2: Pharma MedTech R&D Scheme. The scheme’s own portal is prip.pharma-dept.gov.in, and the Department’s overview is at pharma-dept.gov.in/prip.
Sources: KNN (1 October 2026) reporting on the Department of Pharmaceuticals’ announcement; the PRIP programme documents.
