Research Development and Innovation Fund

Research Development and Innovation Fund Latest News

Recently, the Research, Development and Innovation Fund (RDIF) has announced the first cohort of 19 Second Level Fund Managers (SLFMs). 

About Research Development and Innovation Fund

• It is a flagship initiative of the Government of India.
• It aims to provide long-term financing or refinancing with long tenors at low or nil interest rates to spur private sector investment in Research Development and Innovation.
• Nodal Department: The Department of Science & Technology (DST).
• Governance: The Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overarching strategic direction to the RDI Scheme. 

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Key Objectives of the Research Development and Innovation Fund

• 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;
• Facilitate setting up of a Deep-Tech Fund of Funds.

Funding Mechanism of Research Development and Innovation Fund

• Total Budget: ₹1 Lakh crore
• Implementation Structure
• • Special Purpose Fund (SPF): It will be established within the Anusandhan National Research Foundation (ANRF), which will serve as the custodian of the ₹1 lakh crore corpus. (Fund will not directly invest in industries and startups but will channel capital to Second-level fund managers)
  • Second-level fund managers: Who can be Alternative Investment Funds (AIF), Development Finance Institutions (DFI), Non-banking Finance Companies (NBFCs).
• Modes of Financing
  • Long-term loan at low or nil interest rates.
  • Financing in the form of equity may also be done, especially in case of startups.

Source: PIB