In a landmark move to strengthen India’s research and innovation ecosystem, the Union Cabinet has approved the Research Development and Innovation (RDI) Scheme, allocating a corpus of ₹1 lakh crore. The scheme aims to scale up research, development, and innovation activities, especially in strategic and sunrise domains, by facilitating long-term, low-cost funding to the private sector.
Recognizing the vital role of private enterprise in driving innovation and commercializing research, the RDI Scheme is structured to offer long-tenure financing or refinancing at low or zero interest rates. This is intended to address the funding challenges faced by private players, particularly in high-risk and capital-intensive domains.
Key Objectives of the Scheme:
- Promote private sector RDI in sunrise sectors and those vital for strategic security, economic resilience, and self-reliance.
- Fund transformative projects at advanced stages of technology readiness.
- Support the acquisition of critical technologies of strategic importance.
- Facilitate the creation of a Deep-Tech Fund of Funds to back high-risk innovation ventures.
The Anusandhan National Research Foundation (ANRF) will play a central role in governance and execution. The Governing Board of ANRF, chaired by the Prime Minister, will provide strategic direction, while its Executive Council will approve project guidelines and recommend fund managers. An Empowered Group of Secretaries (EGoS), headed by the Cabinet Secretary, will oversee scheme modifications, sectoral focus, and performance reviews.
The Department of Science and Technology (DST) has been designated the nodal agency for implementation.
Two-Tiered Funding Structure, the funding mechanism includes:
- A Special Purpose Fund (SPF) within ANRF to serve as the primary custodian.
- Allocation of SPF funds to various 2nd-level fund managers, who will extend concessional loans or equity funding to RDI projects, particularly startups.
Financing may also be routed through contributions to Deep-Tech Funds of Funds or similar vehicles aimed at promoting innovation.
Officials noted that the scheme is expected to significantly enhance India’s innovation landscape by mobilizing private sector investment, improving technology adoption, and enhancing global competitiveness. It aligns with the government’s broader goal of achieving a Viksit Bharat (Developed India) by 2047.
