Research Development and Innovation (RDI) Scheme
Kartavya Desk Staff
Source: PMI
Context: The Union Cabinet has approved the Research Development and Innovation (RDI) Scheme with a ₹1 lakh crore corpus to catalyze private sector investment in research, development, and innovation.
About Research Development and Innovation (RDI) Scheme:
• What is the RDI Scheme? The RDI Scheme is a long-term financial support initiative launched by the Government of India to scale up private sector participation in high-end research, innovation, and technology
• The RDI Scheme is a long-term financial support initiative launched by the Government of India to scale up private sector participation in high-end research, innovation, and technology
• Nodal Ministry: Department of Science and Technology (DST)
• Strategic Direction: Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister
• Policy Oversight: Empowered Group of Secretaries (EGoS) led by Cabinet Secretary
• Objectives:
• Scale up R&D and innovation in private sector across sunrise and strategic domains Encourage development of high-TRL (Technology Readiness Level) projects Support acquisition and domestic development of critical technologies Establish a dedicated Deep-Tech Fund of Funds to support frontier technologies
• Scale up R&D and innovation in private sector across sunrise and strategic domains
• Encourage development of high-TRL (Technology Readiness Level) projects
• Support acquisition and domestic development of critical technologies
• Establish a dedicated Deep-Tech Fund of Funds to support frontier technologies
• Key Features of the RDI Scheme: Large-Scale Fund Corpus: ₹1 lakh crore has been allocated to provide affordable finance for innovation in strategic and sunrise sectors. Two-Tiered Financing Mechanism: Funds will flow from a Special Purpose Fund under ANRF to second-level fund managers for targeted project support. Tier-1: Special Purpose Fund under ANRF Tier-2: Allocation to second-level fund managers Low/Nil Interest Loans: Private firms will get long-term loans at minimal or zero interest, easing capital constraints in R&D. Equity and Risk Capital Support: Startups and MSMEs can access equity investments, promoting innovation with lower risk exposure. Support for TRL Projects: Projects with higher Technology Readiness Levels (TRLs) will be prioritised to fast-track market readiness. Deep-Tech Fund of Funds (FoF): A dedicated FoF will support high-tech areas like AI, semiconductors, quantum, and biotech sectors. Technology Acquisition Support: Supports procurement of critical foreign technologies to enhance national capability and self-reliance.
• Large-Scale Fund Corpus: ₹1 lakh crore has been allocated to provide affordable finance for innovation in strategic and sunrise sectors.
• Two-Tiered Financing Mechanism: Funds will flow from a Special Purpose Fund under ANRF to second-level fund managers for targeted project support. Tier-1: Special Purpose Fund under ANRF Tier-2: Allocation to second-level fund managers
• Tier-1: Special Purpose Fund under ANRF
• Tier-2: Allocation to second-level fund managers
• Low/Nil Interest Loans: Private firms will get long-term loans at minimal or zero interest, easing capital constraints in R&D.
• Equity and Risk Capital Support: Startups and MSMEs can access equity investments, promoting innovation with lower risk exposure.
• Support for TRL Projects: Projects with higher Technology Readiness Levels (TRLs) will be prioritised to fast-track market readiness.
• Deep-Tech Fund of Funds (FoF): A dedicated FoF will support high-tech areas like AI, semiconductors, quantum, and biotech sectors.
• Technology Acquisition Support: Supports procurement of critical foreign technologies to enhance national capability and self-reliance.
• Significance:
• Promotes Atmanirbharta: Critical in defence tech, electronics, clean energy. Reduces R&D Credit Gap: Provides capital where private sector hesitates due to risk. Drives Deep-Tech Innovation: Supports ventures in areas critical to national growth.
• Promotes Atmanirbharta: Critical in defence tech, electronics, clean energy.
• Reduces R&D Credit Gap: Provides capital where private sector hesitates due to risk.
• Drives Deep-Tech Innovation: Supports ventures in areas critical to national growth.