Lagatar24 Desk
New Delhi: The Union Cabinet, in a major push to foster innovation, on Tuesday approved the “Research Development and Innovation (RDI) Scheme” with a corpus of ₹1 lakh crore.1 Chaired by Prime Minister Narendra Modi, the cabinet cleared the landmark initiative designed to dramatically increase private sector investment in research, particularly in sunrise and strategic domains critical for India’s economic security and self-reliance.2
Low-Interest Capital to Fuel Innovation
Information and Broadcasting Minister Ashwini Vaishnaw announced that the scheme’s primary objective is to provide long-term financing and refinancing to private companies at low or even zero interest rates.3 This is intended to address the long-standing challenge of inadequate funding for private R&D projects. The initiative aims to provide both growth and risk capital to facilitate innovation, promote the adoption of cutting-edge technology, and enhance the global competitiveness of Indian industries.4 It will also support the creation of a deep-tech Fund of Funds to back ventures in emerging technology areas.5
Governance and Implementation Framework
The scheme will be strategically guided by the Anusandhan National Research Foundation (ANRF), whose governing board is chaired by the Prime Minister.6 The Department of Science and Technology (DST) will serve as the nodal department for implementation.7 The funding will operate through a two-tiered mechanism, where a Special Purpose Fund (SPF) within the ANRF will act as the custodian of the ₹1 lakh crore corpus. This fund will then allocate capital to various second-level fund managers, who will in turn provide long-term concessional loans or, in some cases, equity to eligible R&D projects, especially those involving startups.8
