Recently, the Union Cabinet has approved the Research Development and Innovation (RDI) Scheme with a corpus of Rs. One lakh Crore.

About the Research Development and Innovation Scheme

• Aim: To provide long-term financing or refinancing with long tenors at low or nil interest rates to spur private sector investment in RDI.

• The scheme is designed to overcome the constraints and challenges in funding of the private sector.
• It seeks to provide growth and risk capital to sunrise and strategic sectors to:
  • Facilitate innovation
  • Promote adoption of technology
  • Enhance competitiveness

Key Objectives of the Scheme

• Encourage the private sector to scale up research, development, and innovation (RDI) in:
  • Sunrise domains
  • 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

Execution of the Scheme

• The Governing Board of ANRF, chaired by the Prime Minister, will provide strategic direction to the RDI Scheme.
• An Empowered Group of Secretaries (EGoS), led by the Cabinet Secretary, will:
  • Approve scheme changes
  • Finalize sectors and project types
  • Approve second-level fund managers
  • Review Scheme performance
• The Department of Science and Technology (DST) will serve as the nodal department for the implementation of the RDI Scheme.

Funding Mechanism of Research Development and Innovation (RDI) Scheme

• The RDI Scheme will have a two-tiered funding mechanism.
• At the first level, a Special Purpose Fund (SPF) will be established within the Anusandhan National Research Foundation (ANRF), acting as the custodian of funds.
• From the SPF, funds shall be allocated to various 2nd level fund managers, mainly in the form of:
  • Long-term concessional loans
  • Equity financing, especially for startups
• Contributions may also be made to:
  • Deep-Tech Fund of Funds (FoF)
  • Other Funds of Funds meant for RDI

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