Research Development and Innovation (RDI) Scheme

Research Development and Innovation Scheme Latest News

Recently, the Executive Council of the Anusandhan National Research Foundation approved the establishment of a special purpose fund (SPF) for the Research Development and Innovation Scheme (RDI) scheme.

About Research Development and Innovation Scheme

• 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)

‹ ›

Key Objectives of the Research Development and Innovation Scheme

• 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.
• Governance: The Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overarching strategic direction to the RDI Scheme. 

Funding Mechanism of Research Development and Innovation Scheme

• 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