Rs 1 Lakh Crore R&D Fund for Industry to Launch by Month-End

Addressing a review meeting for the RDI Fund scheme, the Minister noted that the funding framework has entered into the execution phase, and two public sector institutions are poised to start funding industry-backed projects.

The RDI scheme was approved by the Union Cabinet on July 1 last year and formally rolled out on November 3 with the launch of its implementation guidelines, notice inviting applications, and a dedicated digital portal by Prime Minister Narendra Modi.

"The scheme is aimed at supporting high-risk, high-impact research and strengthening linkages between laboratories, startups and industry," the Minister was informed during the meeting.

The Department of Science & Technology (DST) has approved the Technology Development Board (TDB) and the Biotechnology Industry Research Assistance Council (BIRAC) as the first Second-Level Fund Managers (SLFMs) under the RDI Fund, a Rs 1 lakh crore initiative to catalyse private sector-led research and innovation.

"Under the approved implementation framework, TDB will act as the Second-Level Fund Manager for projects spanning all RDI sunrise and strategic sectors, while BIRAC will oversee initiatives in biotechnology and allied domains. Both organisations are expected to issue their first calls for proposals by the end of January 2026, facilitating early deployment of RDI Fund resources to innovation-driven ventures that have progressed beyond TRL-4," said the Ministry of Science & Technology.

Both organisations will receive Rs 2,000 crore each in the first quarter, taking the initial allocation under the scheme to Rs 4,000 crore, and are expected to issue calls for project proposals from startups, companies, and industry before the end of January.

The last date to receive applications from other Second Level Fund Managers is January 31. The other fund managers may include the Alternate Investment Fund structure (AIF), the Development Finance Institutions (DFIs), the Non-Banking Finance Corporation (NBFC), and the Focused Research Organization (FRO), the Ministry said.

Further, Singh stressed the need for the timely execution of the RDI scheme and close coordination among science departments.

"Public funding for research and innovation must translate into measurable outcomes for industry and society," Singh said.

The Minister also reviewed measures being taken to streamline procedures, including revisions to the implementation guidelines based on stakeholder feedback, to ensure transparency and ease of participation.

- IANS