The Union Cabinet has approved the Research Development and Innovation (RDI) Scheme with a corpus of ₹1 trillion, aimed at significantly scaling up private sector engagement in research, development and innovation across strategic and sunrise domains. The scheme seeks to provide long-tenor, low or nil-interest financing to catalyse private investment in high-impact and transformative projects.
The RDI Scheme has been designed to address longstanding challenges in private-sector R&D funding by providing growth and risk capital to sectors essential for economic security, technological advancement, and national self-reliance. It encourages investments in projects with high Technology Readiness Levels (TRLs), acquisition of critical and strategic technologies, and the establishment of a Deep-Tech Fund of Funds to support scalable innovation.
The scheme will be governed by a robust three-tier structure. The Governing Board of the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overall strategic direction. The Executive Council of ANRF will approve scheme guidelines and recommend sectoral scopes and second-level fund managers. The Empowered Group of Secretaries (EGoS), led by the Cabinet Secretary, will approve sector-specific changes, review performance, and appoint fund managers.
The scheme will follow a two-tiered funding model. A Special Purpose Fund within ANRF will serve as the central custodian of funds, which will be disbursed to second-level fund managers as long-term concessional loans. These fund managers will in turn provide financing to private R&D projects through low or nil-interest loans. Equity investments will also be permitted, particularly for startups. Contributions to the Deep-Tech Fund of Funds or other RDI-focused funds may also be made.
The Department of Science and Technology will serve as the nodal implementing agency. By offering affordable long-term financing tailored to innovation-driven enterprises, the scheme aims to create a thriving ecosystem that integrates public support with private initiative, aligns with national strategic objectives, and accelerates the journey towards Viksit Bharat by 2047.
