News Brief
India's Mega R&D Push: Rs 1 Lakh Crore RDI Scheme To Power Private R&D In Strategic And Next-Gen Sectors—All About It
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In a major policy move, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday (1 July) approved a Rs 1 lakh crore Research Development and Innovation (RDI) Scheme aimed at unlocking private sector-led R&D in critical and emerging technologies.
The scheme is designed to offer long-term financing or refinancing at low or nil interest rates to address the funding constraints faced by private players in R&D-intensive domains.
According to the government, it seeks to provide both growth and risk capital for transformative projects and promote the adoption of advanced technologies.
Key objectives of the RDI Scheme include encouraging R&D in sunrise domains and other sectors relevant for economic security, strategic purpose, and self-reliance; financing projects at higher Technology Readiness Levels (TRLs), and supporting the acquisition of critical or strategically important technologies.
It will also facilitate the creation of a Deep-Tech Fund of Funds.
The governance of the scheme will be anchored by the Anusandhan National Research Foundation (ANRF), with the Prime Minister as Chair of its Governing Board.
The ANRF’s Executive Council will be responsible for framing guidelines and recommending second-level fund managers.
An Empowered Group of Secretaries (EGoS), led by the Cabinet Secretary, will be responsible for approving scheme changes, sectors and types of projects as well as second-level fund managers besides reviewing the performance of the scheme.
The scheme will follow a two-tiered funding model.
A Special Purpose Fund (SPF) will be created within ANRF, which will serve as the custodian of the funds.
Funds will be allocated from the SPF to a range of second-level fund managers, mainly in the form of long-term concessional loans.
These managers will offer funding to the companies/startups in the form of long-term loan at low or nil interest rates.
Financing in the form of equity may also be done, especially in case of startups.
Additionally, contributions may also be made to the Deep-Tech Fund of Funds or to other Funds of Funds specifically intended to support RDI efforts.
According to the government, by addressing the critical need of private sector for long-term, affordable financing, the RDI Scheme aims to foster self-reliance and global competitiveness, thereby supporting the facilitation of a conducive innovation ecosystem for the country as it marches towards Viksit Bharat at 2047.
