By Prime Minister Narendra
New Delhi, Jul 2 (KNN) In a landmark move to enhance India鈥檚 research and innovation landscape, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Research Development and Innovation (RDI) Scheme with a financial outlay of Rs 1 lakh crore.
The initiative is a significant step toward building a self-reliant and globally competitive innovation ecosystem aligned with the country鈥檚 vision for Viksit Bharat @ 2047.
The RDI Scheme is strategically designed to address critical funding challenges faced by the private sector in undertaking high-risk and high-impact research and innovation projects.
By offering long-term financing or refinancing with extended tenors at low or zero interest rates, the scheme seeks to catalyse private sector investment in research, development, and innovation (RDI), especially in sunrise and strategic sectors.
Key objectives of the scheme include incentivising private sector participation in RDI activities, particularly in domains vital for economic security and strategic self-reliance.
It also aims to finance transformative projects at advanced stages of Technology Readiness Levels (TRL).
Another key objective is to support the acquisition of critical and strategically important technologies. Additionally, the scheme seeks to facilitate the establishment of a Deep-Tech Fund of Funds.
The scheme will be steered by the Governing Board of the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, which will provide overall strategic direction.
The Executive Council (EC) of the ANRF will be responsible for approving operational guidelines and recommending second-level fund managers and sectoral project priorities.
An Empowered Group of Secretaries (EGoS), headed by the Cabinet Secretary, will oversee modifications to the scheme, approval of sectors and fund managers, and performance reviews.
The Department of Science and Technology (DST) will act as the nodal agency for the implementation of the RDI Scheme.
The funding mechanism under the scheme will follow a two-tiered structure. A Special Purpose Fund (SPF) will be established within the ANRF as the primary custodian of the corpus.
Funds from the SPF will be disbursed to a network of second-level fund managers, primarily in the form of long-term concessional loans.
These fund managers will then finance R\&D projects in the private sector, offering loans at low or nil interest rates. Equity-based financing will also be considered, particularly for start-ups.
In addition, the scheme may contribute to a Deep-Tech Fund of Funds or similar vehicles aimed at supporting RDI-focused enterprises.
By addressing the private sector鈥檚 need for accessible and long-term capital, the RDI Scheme is poised to accelerate innovation, enable technological advancement, and reinforce India鈥檚 ambition of becoming a global leader in science and technology.