To strengthen India’s research and innovation capabilities, the Union cabinet, approved the Research Development and Innovation (RDI) Scheme with a substantial corpus of ₹1 lakh crore. The transformative scheme is designed to significantly enhance private sector participation in high-impact research and technological advancement across strategic and sunrise sectors.
Empowering Private Sector Innovation
Recognizing the pivotal role of the private sector in driving innovation and commercializing research, the RDI Scheme offers long-term financing or refinancing options at low or nil interest rates. It addresses the current challenges in funding private R&D and seeks to provide growth and risk capital for high-tech domains.
Key Objectives of the RDI Scheme
The scheme aims to:
*Encourage private enterprises to scale up R&D in sunrise domains and sectors vital for economic security, strategic interests, and self-reliance
*Finance transformative projects with higher Technology Readiness Levels (TRL)
*Support the acquisition of critical and strategically important technologies
*Facilitate the creation of a dedicated Deep-Tech Fund of Funds
Governance Structure and Strategic Oversight
The Anusandhan National Research Foundation (ANRF) will serve as the apex body overseeing the implementation and strategic alignment of the RDI Scheme. The Governing Board of ANRF will set the overall strategic direction. The Executive Council (EC) of ANRF will approve scheme guidelines, identify priority sectors, and recommend second-level fund managers. An Empowered Group of Secretaries (EGoS), led by the Cabinet Secretary, will review performance, approve revisions, and finalize sectoral focus areas. The Department of Science and Technology (DST) will act as the nodal agency for implementing the scheme.
Two-Tier Funding Mechanism for Greater Flexibility
The scheme introduces a two-tiered funding model to ensure efficient capital deployment and effective project management:
*Special Purpose Fund (SPF)
Housed within the ANRF, the SPF will act as the primary custodian of funds. It will channel resources to a variety of second-level fund managers.
*Second-Level Fund Managers
These managers will finance eligible R&D projects primarily through long-term concessional loans at low or zero interest rates. In the case of startups and early-stage companies, the scheme may also offer equity-based funding. The model also allows contributions to Deep-Tech Funds of Funds (FoFs) or other similar financing instruments aimed at supporting RDI-focused ventures.
Catalysing Self-Reliance and Global Competitiveness
By providing affordable, long-duration financing, the RDI Scheme directly addresses a long-standing constraint faced by the private sector. It aims to de-risk innovation and accelerate technology adoption. The scheme will unlock investment in frontier sectors such as quantum computing, semiconductors, AI, biotech, space, and green energy.
Driving India Toward Viksit Bharat 2047
The approval of the RDI Scheme is a significant step toward realising the vision of Viksit Bharat by 2047. By promoting a robust innovation ecosystem, the scheme will boost self-reliance, economic growth, and India’s positioning as a global leader in high-tech industries. As reported by pmindia.gov.in, with strong governance, strategic alignment, and targeted support, the RDI Scheme marks a turning point in India’s journey toward becoming an innovation-driven economy.
