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Time of India
02-07-2025
- Business
- Time of India
Centre approves ₹1 lakh crore scheme to boost R&D, innovation in sunrise sectors
NEW DELHI: The Cabinet, led by Prime Minister Narendra Modi , on Tuesday approved the 'Research Development and Innovation (RDI) Scheme' with a corpus of ₹1 lakh crore, a move that is expected to boost private sector investments in research and development (R&D) in sunrise sectors , such as deep tech and electronics. 'Recognizing the critical role that the private sector plays in driving innovation and commercialising research, the RDI Scheme aims to provide long-term financing or refinancing with long tenors at low or nil interest rates to spur private sector investment in RDI,' the Central government said in an official statement. India has been a laggard vis-à-vis mature markets like the US, Japan, and China, in terms of R&D investments. Experts estimate that India allocates only about 0.64% of its GDP to investing in R&D. As per the government statement, the scheme envisages alleviating the challenges in funding the private sector and seeks to provide growth and risk capital to sunrise and strategic sectors to facilitate innovation, promote adoption of technology, and enhance competitiveness. Other key objectives of the scheme include financing transformative projects at higher levels of technology readiness levels (TRL); supporting the acquisition of technologies critical or of high strategic importance; and facilitating the setting up of a deep-tech fund of funds. The governing board of Anusandhan National Research Foundation (ANRF), chaired by PM Modi, will provide overarching strategic direction to the RDI Scheme. The executive council (EC) of ANRF will approve the scheme's guidelines, and recommend second-level fund managers and scope and type of projects in the sunrise sectors. An empowered group of secretaries (EGoS) led by the Cabinet Secretary will be responsible for approving scheme changes, sectors and types of projects as well as second-level fund managers, besides reviewing the performance of the Scheme, as per the statement. The Department of Science and Technology (DST) will serve as the nodal department for the implementation of the RDI Scheme. The RDI Scheme will have a two-tiered funding mechanism. At the first level, there will be a Special Purpose Fund (SPF) established within the ANRF, which will act as the custodian of funds. From the SPF funds, shall be allocated to second-level fund managers, primarily in the form of long-term concessional loans. The funding for R&D projects by the second-level fund managers would normally be in the form of a long-term loan at low or nil interest rates. Financing in the form of equity may also be done, especially in the case of startups. Contribution to Deep-Tech Fund of Funds (FoF) or any other FoF meant for RDI may also be considered. 'By unlocking ₹1 lakh crore of long-term capital for sunrise and strategic sectors, this initiative will catalyze private-sector-led innovation in areas critical to India's economic and technological sovereignty — including semiconductors, deep-tech, and electronics. IESA strongly supports this vision and will actively work to mobilise its member base and ecosystem partners to align with the RDI goals,' said Ashok Chandak , president of IESA and SEMI India. 'This fund will also enable translational research by the private sector. Typically, under ANRF, technical, education/research institutions will take it to Technology Readiness Level 4. Private sector (both corporate and startups) can then take it for translational research to TRL-9 for India and the world,' said Ajai Chowdhry, founder of HCL, and chairman of EPIC Foundation. The newly approved R&D fund will enable India to develop cutting-edge products across various sectors and assert its position as a product nation in different areas, Chowdhry said.
India Gazette
01-07-2025
- Business
- India Gazette
Cabinet approves Research and Development and Innovation scheme with corpus of Rs 1 lakh crore to boost strategic, sunrise domains
New Delhi [India], July 1 (ANI): In a significant step to bolster India's research and innovation ecosystem, the Union Cabinet on Tuesday approved research development and innovation (RDI) scheme with a corpus of Rs one lakh crore to scale up research, development and innovation in strategic and sunrise domains. Briefing reporters on the cabinet decisions, Information and Broadcasting Minister Ashwani Vaishnaw said Research Development and Innovation (RDI) Scheme recognises the critical role that the private sector plays in driving innovation and commercialising research. The RDI Scheme aims 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 has been designed to overcome the constraints and challenges in funding the private sector and seeks to provide growth and risk capital to sunrise and strategic sectors to facilitate innovation, promote technology adoption, and enhance competitiveness. Key objectives of the Scheme are to 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. The scheme will finance transformative projects at higher levels of Technology Readiness Levels (TRL). In addition, the project support acquisition of technologies which are critical or of high strategic importance, and facilitate setting up of a Deep-Tech Fund of Funds. An official release said that the Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overarching strategic direction to the RDI Scheme. The Executive Council (EC) of ANRF will approve the Scheme's guidelines, and recommend 2nd level fund managers and scope and type of projects in sunrise sectors. An Empowered Group of Secretaries (EGoS) led by the Cabinet Secretary, will be responsible for approving scheme changes, sectors and types of projects as well as second-level fund managers besides reviewing the performance of the Scheme. The Department of Science and Technology (DST) will serve as the nodal department for implementation of RDI Scheme. The RDI Scheme will have a two-tiered funding mechanism. At the first level, there will be a Special Purpose Fund (SPF) established within the ANRF, which will act as the custodian of funds. From the SPF funds shall be allocated to a variety of second level fund managers. This will be mainly in the form of long-term concessional loans, the release said. The funding to R&D projects by the second level fund managers would normally be in the form of long-term loan at low or nil interest rates. Financing in the form of equity may also be done, especially in case of startups. Contribution to Deep-Tech Fund of Funds (FoF) or any other FoF meant for RDI may also be considered. By addressing the critical need of private sector for long-term, affordable financing, the RDI Scheme fosters self-reliance and global competitiveness, thereby facilitating a conducive innovation ecosystem for the country as it marches towards Viksit Bharat at 2047, the release said. (ANI)
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Business Standard
01-07-2025
- Business
- Business Standard
Union Cabinet clears ₹1 trillion RDI scheme to fund innovation in tech
The Union Cabinet on Tuesday approved the Research Development and Innovation (RDI) Scheme announced in the July Budget last year, with a corpus of Rs 1 trillion to provide risk capital to strategic and sunrise sectors, Information and Broadcasting Minister Ashwini Vaishnaw said. The scope of the scheme would range from energy security and transition to quantum computing, robotics, biotechnology and artificial intelligence, the government has said. The scheme aims to provide long-term financing or refinancing with long tenors at low or nil interest rates to spur private sector investment in RDI through a two-tiered structure. The flow of funds would take place through grant of 50-year interest-free loans to the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister. ANRF would then give long-term concessional loans to second-level fund managers such as Alternative Investment Funds, Development Finance Institutions and Non-Banking Financial Companies. These second-level fund managers would then finance individual projects. The scheme would also facilitate setting up of a Deep-Tech Fund of Funds, finance transformative projects at higher levels of technology, and support acquisition of critical technologies of high strategic importance. 'There is an urgent need for funding innovation. It is definitely needed. Globally, governments in countries like the US have financed the National Science Fund,' said economist N R Bhanumurthy. The Department of Science and Technology (DST) will serve as the nodal department for implementation of the scheme. The Governing Board of ANRF will provide overarching strategic direction to the RDI Scheme and its Executive Council would recommend the guidelines for the scheme and second-level fund managers along with the scope and type of projects in sunrise sectors. 'By addressing the critical need of private sector for long-term, affordable financing, the RDI Scheme fosters self-reliance and global competitiveness, thereby facilitating a conducive innovation ecosystem for the country as it marches towards Viksit Bharat at 2047,' a press statement by the government said. Changes to the scheme, sectors or the type of projects, as well as second-level fund managers, would be approved by an Empowered Group of Secretaries led by the Cabinet Secretary, the statement said. The focus of the scheme would include the digital economy, including digital agriculture, technologies required for strategic reasons, economic security, self-reliance and public interest. The scheme would support artificial intelligence and its application to India-specific challenges in agriculture, health and education. The press statement by the government said, 'The scheme has been designed to overcome the constraints and challenges in funding of the private sector and seeks to provide growth and risk capital to sunrise and strategic sectors to facilitate innovation, promote adoption of technology and enhance competitiveness.'
NDTV
01-07-2025
- Business
- NDTV
Cabinet Approves Rs 1 Lakh Crore Scheme To Spur Private Investments In Research
New Delhi: The Union Cabinet on Tuesday approved the Research Development and Innovation Scheme with a corpus of Rs one lakh crore to spur private sector investment in research. The scheme, approved by the Cabinet at a meeting chaired by Prime Minister Narendra Modi, aims to encourage the private sector to scale up research, development and innovation in sunrise domains and in other sectors relevant for economic security, strategic purpose, and self-reliance. The scheme 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, I&B Minister Ashwini Vaishnaw told reporters. He said the scheme has been designed to overcome the constraints and challenges in funding of the private sector and seeks to provide growth and risk capital to sunrise and strategic sectors to facilitate innovation, promote adoption of technology and enhance competitiveness. The initiative will also finance transformative projects at higher technology readiness levels, support acquisition of technologies which are critical or of high strategic importance, and facilitate setting up of a deep-tech fund of funds. Mr Vaishnaw said the governing board of Anusandhan National Research Foundation (ANRF), chaired by the prime minister, will provide overarching strategic direction to the RDI scheme. The Executive Council of ANRF will approve the scheme's guidelines, and recommend second level fund managers and scope and type of projects in sunrise sectors. An Empowered Group of Secretaries led by the Cabinet Secretary, will be responsible for approving scheme changes, sectors and types of projects as well as second-level fund managers besides reviewing the performance of the Scheme. The Department of Science and Technology (DST) will serve as the nodal department for implementation of the RDI scheme. The scheme will have a two-tiered funding mechanism. At the first level, there will be a special purpose fund (SPF) established within the ANRF, which will act as the custodian of funds. "From the SPF funds shall be allocated to a variety of second level fund managers. This will be mainly in the form of long-term concessional loans," Mr Vaishnaw said. The funding to R&D projects by the second level fund managers would normally be in the form of long-term loan at low or nil interest rates. Financing in the form of equity may also be done, especially in case of startups. Contribution to deep-tech fund of funds (FoF) or any other FoF meant for RDI may also be considered, he said. By addressing the critical need of the private sector for long-term, affordable financing, the RDI Scheme fosters self-reliance and global competitiveness, thereby facilitating a conducive innovation ecosystem for the country as it marches towards Viksit Bharat at 2047, Mr Vaishnaw said.
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Business Standard
01-07-2025
- Business
- Business Standard
Govt approves ₹1-trillion RDI scheme to boost private-sector innovation
The Union Cabinet on Tuesday approved a ₹1-trillion corpus for the Research Development and Innovation (RDI) Scheme, aiming to spur private-sector investment in strategic and high-growth sectors through long-term, low-cost funding. 'Recognising the critical role that the private sector plays in driving innovation and commercialising research, the RDI Scheme aims to provide long-term financing or refinancing with long tenors at low or nil interest rates,' the government said in a statement. Addressing private funding gaps The scheme is designed to address gaps in private-sector research funding by offering growth and risk capital to 'sunrise sectors' — industries with high growth potential such as deep-tech, AI, and green technologies. How RDI scheme will work The funding structure will operate at two levels: At the first level, a Special Purpose Fund (SPF) will be established under the Anusandhan National Research Foundation (ANRF), which will manage the ₹1-trillion corpus. At the second level, fund managers will deploy these funds to specific R&D projects via long-tenure loans at little or no interest, or through equity infusions in start-ups. The RDI fund was originally announced in the July Budget for FY25. Finance Minister Nirmala Sitharaman, in her Budget speech on February 1 this year, had earmarked ₹20,000 crore to the Department of Science and Technology (DST) for this initiative. DST's budget has grown from ₹2,777 crore in 2014 to ₹28,509 crore in FY26, and gross expenditure on research and development has risen from ₹60,196 crore to ₹1,27,380 crore over the same period.
