RDI Fund to Back Industry Projects From January
ECONOMY & POLICY

RDI Fund to Back Industry Projects From January

As a follow-up to an announcement by Narendra Modi on 3 November 2025, funding under the Research, Development and Innovation (RDI) framework for industry-backed projects is set to begin by the end of this month, with the scheme having entered its execution phase and two public sector institutions ready to commence disbursements.

The update emerged after a review of the RDI Fund scheme chaired by Jitendra Singh, Union Minister of State (Independent Charge) for Science and Technology and Earth Sciences, and Minister of State for the PMO, Department of Atomic Energy, Department of Space, Personnel, Public Grievances and Pensions. Officials briefed the Minister on progress under the scheme, which was approved by the Union Cabinet on 1 July last year and formally rolled out on 3 November with the launch of implementation guidelines, a notice inviting applications and a dedicated digital portal by the Prime Minister. The initiative is aimed at supporting high-risk, high-impact research and strengthening linkages between laboratories, start-ups and industry.

The Department of Science and Technology has approved the Technology Development Board and the Biotechnology Industry Research Assistance Council as the first Second-Level Fund Managers under the RDI Fund, a Rs 1 trillion programme designed to catalyse private sector-led research and innovation. Under the approved framework, the Technology Development Board will manage projects across all RDI sunrise and strategic sectors, while BIRAC will oversee biotechnology and allied domains.

Both organisations are expected to issue their first calls for proposals by the end of January 2026, enabling early deployment of RDI resources to innovation-led ventures that have progressed beyond Technology Readiness Level 4. The deadline for applications from other prospective Second-Level Fund Managers is 31 January 2026, with eligible entities including Alternative Investment Funds, Development Finance Institutions, Non-Banking Finance Companies and Focused Research Organisations.

Following the formal rollout, the Department of Science and Technology received a large number of queries from stakeholders seeking clarity on the implementation guidelines. These were examined and addressed, after which the online portal was operationalised to receive applications for Second-Level Fund Managers. In line with Cabinet provisions, BIRAC and the Technology Development Board were invited on a nomination basis to take up the initial roles.

The Minister was also informed that the Empowered Group of Secretaries, at its meeting on 12 January, approved BIRAC and the Technology Development Board as Second-Level Fund Managers in accordance with the decision of the Executive Council of the Anusandhan National Research Foundation. Each institution will receive Rs 20 billion in the first quarter, taking the initial allocation under the scheme to Rs 40 billion, and will invite project proposals from start-ups, companies and industry before the end of January.

Chairing the review, Dr Singh stressed the importance of timely execution of the RDI scheme and closer coordination among science departments. He underlined that public investment in research and innovation must deliver measurable outcomes for industry and society, while aligning with national development priorities. The review also took stock of measures to streamline procedures, including revisions to implementation guidelines based on stakeholder feedback, to enhance transparency and ease of participation.

During the discussions, the Minister reiterated that strengthening private sector participation in research and development remains a central objective of the RDI framework. He noted that the scheme is intended to support translational research and foster stronger collaboration between public research institutions, start-ups and industry, enabling scientific outputs to move more effectively towards commercial and societal application. The meeting was attended by Secretaries and senior officials from science ministries and departments, and opened with welcome remarks by the Principal Scientific Adviser to the Government of India.

As a follow-up to an announcement by Narendra Modi on 3 November 2025, funding under the Research, Development and Innovation (RDI) framework for industry-backed projects is set to begin by the end of this month, with the scheme having entered its execution phase and two public sector institutions ready to commence disbursements. The update emerged after a review of the RDI Fund scheme chaired by Jitendra Singh, Union Minister of State (Independent Charge) for Science and Technology and Earth Sciences, and Minister of State for the PMO, Department of Atomic Energy, Department of Space, Personnel, Public Grievances and Pensions. Officials briefed the Minister on progress under the scheme, which was approved by the Union Cabinet on 1 July last year and formally rolled out on 3 November with the launch of implementation guidelines, a notice inviting applications and a dedicated digital portal by the Prime Minister. The initiative is aimed at supporting high-risk, high-impact research and strengthening linkages between laboratories, start-ups and industry. The Department of Science and Technology has approved the Technology Development Board and the Biotechnology Industry Research Assistance Council as the first Second-Level Fund Managers under the RDI Fund, a Rs 1 trillion programme designed to catalyse private sector-led research and innovation. Under the approved framework, the Technology Development Board will manage projects across all RDI sunrise and strategic sectors, while BIRAC will oversee biotechnology and allied domains. Both organisations are expected to issue their first calls for proposals by the end of January 2026, enabling early deployment of RDI resources to innovation-led ventures that have progressed beyond Technology Readiness Level 4. The deadline for applications from other prospective Second-Level Fund Managers is 31 January 2026, with eligible entities including Alternative Investment Funds, Development Finance Institutions, Non-Banking Finance Companies and Focused Research Organisations. Following the formal rollout, the Department of Science and Technology received a large number of queries from stakeholders seeking clarity on the implementation guidelines. These were examined and addressed, after which the online portal was operationalised to receive applications for Second-Level Fund Managers. In line with Cabinet provisions, BIRAC and the Technology Development Board were invited on a nomination basis to take up the initial roles. The Minister was also informed that the Empowered Group of Secretaries, at its meeting on 12 January, approved BIRAC and the Technology Development Board as Second-Level Fund Managers in accordance with the decision of the Executive Council of the Anusandhan National Research Foundation. Each institution will receive Rs 20 billion in the first quarter, taking the initial allocation under the scheme to Rs 40 billion, and will invite project proposals from start-ups, companies and industry before the end of January. Chairing the review, Dr Singh stressed the importance of timely execution of the RDI scheme and closer coordination among science departments. He underlined that public investment in research and innovation must deliver measurable outcomes for industry and society, while aligning with national development priorities. The review also took stock of measures to streamline procedures, including revisions to implementation guidelines based on stakeholder feedback, to enhance transparency and ease of participation. During the discussions, the Minister reiterated that strengthening private sector participation in research and development remains a central objective of the RDI framework. He noted that the scheme is intended to support translational research and foster stronger collaboration between public research institutions, start-ups and industry, enabling scientific outputs to move more effectively towards commercial and societal application. The meeting was attended by Secretaries and senior officials from science ministries and departments, and opened with welcome remarks by the Principal Scientific Adviser to the Government of India.

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