Startups struggling to rise from the ashes of Bangalore Bioinnovation Centre fire accident

Bengaluru: Nearly two months after a massive fire reduced painstaking research to ashes at the Bangalore Bioinnovation Centre (BBC), startups are struggling to get back on their feet due to a lack of clarity about government support. 

The fire swept through the government-run, state-of-the-art translational research and entrepreneurship centre incubating startups in life sciences on January 14. It destroyed at least 12 labs, causing an estimated loss of Rs 120 crore. 

The BBC housed 120 companies employing 200-250 people. The blaze destroyed 20 labs belonging to 12 companies. 

Although IT/BT Minister Priyank Kharge assured startups of full support through available “avenues”, he had made it clear that the government has no policy to compensate them for fire accidents. 

In the state budget presented on March 7, Chief Minister Siddaramaiah announced Rs 57 crore for the BBC’s reconstruction, but there’s no official word on compensating the affected startups. 

At least 10 startups have halted operations, and more than three have exited, citing unfavorable conditions for research, multiple representatives said. 

Some startups have stopped paying salaries, giving staff two options: wait a few months or leave. Even those committed to rebuilding their research have seen skilled scientists resign. 

A representative from a startup working on alternative proteins and fermentation criticised the government’s response, saying it “lacks both commitment and clarity”. 

“In the IT/BT department’s assurance, it wasn’t clear what kind of help we would receive. We all expected monetary assistance,” he told DH. 

Others echoed him. 

To its credit, the department quickly provided alternative spaces and set up makeshift labs to help affected startups resume operations
immediately. 

Arnab Roy Chowdhury, a start-up founder which exited the facility, said companies like his cannot afford delays. 

“We need to pay employees and continue our research. We could not work in these makeshift facilities because we deal with sensitive materials such as mammal cells, where even slight changes in temperature affect results,” Chowdhury told DH. “The summer heat makes it impossible to work inside the temporary labs. How can we conduct experiments in such conditions?” 

Startup founders said the department is yet to respond to their emails for
support. 

However, the person from the alternative proteins and fermentation startup said he received information from a department insider that the government was not considering monetary compensation.

Even before the budget announcement, the department was waiting for a cabinet approval to fund the losses. 

We did whatever we could: Priyank Kharge

IT/BT Minister Priyank Kharge defended the government’s response, saying it acted swiftly to help startups resume operations by setting up makeshift facilities. 

“The Bangalore Bioinnovation Centre (BBC) is a high-tech facility that was not built or could not be built overnight because everything inside the facility was expensive and had a specialised function. We have allocated funds in the budget for its reconstruction, and it will be completed as soon as possible,” he told DH. 

Kharge reiterated that the government would explore all options, including using CSR funds, to help affected startups. 

“I have personally listened to their concerns and documented every loss, from expensive equipment to laptops. We will surely look into it,” Kharge said.