In News:

The Union Cabinet, chaired by the Prime Minister, has approved the Research Development and Innovation (RDI) Scheme with a corpus of ?1 lakh crore to strengthen India’s innovation ecosystem and boostprivate sector R&D investments.

Objective of the RDI Scheme

The scheme is designed to:

• Provide long-term financing or refinancing at low or nil interest rates
• Stimulate private sector investment in R&D and innovation
• Overcome existing funding challenges for private research
• Support sunrise and strategic sectors to drive:
  • Innovation
  • Technology adoption
  • National competitiveness
  • Economic security and self-reliance

Key Aims

• Encourage private sector participation in high-TRL (Technology Readiness Level) R&D projects
• Fund transformative innovation in sunrise domains
• Enable acquisition of critical and strategic technologies
• Facilitate the establishment of a Deep-Tech Fund of Funds (FoF)

Funding Structure

The RDI Scheme will operate on a two-tiered funding mechanism:

First Tier: Special Purpose Fund (SPF) under ANRF

• Housed within the Anusandhan National Research Foundation (ANRF)
• Acts as the primary custodian of funds

Second Tier: Fund Allocation & Disbursal

• SPF will allocate funds to multiple 2nd-level fund managers
• Mode of financing:
  • Long-term concessional loans (low or nil interest)
  • Equity financing, particularly for startups
  • Contributions to Deep-Tech Fund of Funds (FoF) or other RDI-focused FoFs

Governance & Implementation

• Governing Board of ANRF (chaired by the Prime Minister): Provides strategic direction
• Executive Council (EC) of ANRF:
  • Approves scheme guidelines
  • Recommends fund managers
  • Determines project types and sectors
• Empowered Group of Secretaries (EGoS):
  • Led by the Cabinet Secretary
  • Approves scheme changes, sectors, fund managers
  • Monitors performance of the scheme

• Nodal Department:Department of Science and Technology (DST) is the nodal ministry for implementation.