In a move aimed at strengthening India’s research and innovation ecosystem, the Union Cabinet on Tuesday approved the Research Development and Innovation (RDI) Scheme, with a total outlay of ₹1 lakh crore. The scheme is designed to encourage greater private sector participation in research and innovation, particularly in strategic and sunrise sectors.
The RDI Scheme seeks to provide long-term financing or refinancing to private companies at low or nil interest rates. Officials said the scheme addresses the persistent funding constraints faced by the private sector in taking up research projects, and aims to provide growth and risk capital for critical and emerging technologies. The government hopes this will promote technological adoption, enhance global competitiveness, and contribute to economic security and self-reliance.
Under the scheme, projects at higher levels of Technology Readiness Levels (TRL) will receive funding, and support will also be extended for the acquisition of critical or strategically important technologies. The scheme will also facilitate the creation of a Deep-Tech Fund of Funds to back technology-focused ventures.
The Research Development and Innovation Scheme will operate through a two-tier funding structure. At the first level, a Special Purpose Fund (SPF) will be set up within the Anusandhan National Research Foundation (ANRF), which will act as the custodian of the corpus. Funds from the SPF will then be allocated to various second-level fund managers, which will provide long-term concessional loans or, in some cases, equity funding—particularly for startups.
The overarching strategic direction of the scheme will be provided by the Governing Board of the ANRF, chaired by the Prime Minister. The Executive Council of the ANRF will be responsible for approving guidelines and identifying second-level fund managers and projects in sunrise sectors. An Empowered Group of Secretaries, headed by the Cabinet Secretary, will oversee the scheme’s implementation, review its performance, and make decisions on sectors, project types, and fund managers. The Department of Science and Technology will serve as the nodal department for executing the scheme.