By The Hindu Bureau
The Union Minister Ashwini Vaishnaw on Tuesday (July 1, 2025) said that the Union Cabinet has approved the Research Development and Innovation scheme for ₹1 lakh crore.
The key objectives of the scheme are: Encourage the private sector to scale up research, development, and innovation (RDI) in sunrise domains and in other sectors relevant for economic security, strategic purpose, and self-reliance; Finance transformative projects at higher levels of Technology Readiness Levels (TRL); Support acquisition of technologies which are critical or of high strategic importance; and Facilitate setting up of a Deep-Tech Fund of Funds. The Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overarching strategic direction to the RDI Scheme.
Recognising the critical role that the private sector plays in driving innovation and commercialising research, the RDI Scheme aims to provide long-term financing or refinancing with long tenors at low or nil interest rates to spur private sector investment.
The scheme has been designed to overcome the constraints and challenges in funding of private sector and seeks to provide growth and risk capital to sunrise and strategic sectors to facilitate innovation, promote adoption of technology and enhance competitiveness.
The RDI Scheme will have a two-tiered funding mechanism. At the first level, there will be a Special Purpose Fund (SPF) established within the ANRF, which will act as the custodian of funds. From the SPF funds shall be allocated to a variety of 2nd level fund managers. This will be mainly in the form of long-term concessional loans.
The funding to R&D projects by the 2nd level fund managers would normally be in the form of long-term loan at low or nil interest rates.