Government to Launch Rs. 1 Lakh Crore RDI Fund by End of January

New Delhi: The government will operationalise the ?1 lakh crore Research, Development and Innovation (RDI) Fund for industry-supported projects by the end of this month, Union Minister of State (Independent Charge) for Science and Technology Dr. Jitendra Singh said on Monday.

Speaking at a review meeting on the RDI Fund scheme, the Minister said the initiative has now entered the execution phase, with two public sector institutions ready to begin funding eligible industry-backed projects.

The RDI scheme was approved by the Union Cabinet on July 1 last year and was formally launched on November 3, when Prime Minister Narendra Modi unveiled its implementation guidelines, issued the notice inviting applications, and inaugurated a dedicated digital portal.

The scheme is designed to support high-risk, high-impact research and to strengthen collaboration among research laboratories, startups, and industry.

The Department of Science and Technology (DST) has designated the Technology Development Board (TDB) and the Biotechnology Industry Research Assistance Council (BIRAC) as the first Second-Level Fund Managers (SLFMs) under the ?1 lakh crore RDI initiative, which aims to spur private sector-led research and innovation.

Under the approved framework, TDB will manage projects across all RDI sunrise and strategic sectors, while BIRAC will focus on biotechnology and allied areas. Both institutions are expected to issue their first calls for project proposals by the end of January 2026, enabling early deployment of funds to innovation-driven ventures that have crossed Technology Readiness Level-4 (TRL-4), according to the Ministry of Science and Technology.

Each organisation will receive an initial allocation of ?2,000 crore in the first quarter, taking the total initial disbursement under the scheme to ?4,000 crore. Calls for proposals from startups, companies, and industry are expected before the end of January.

The Ministry said applications from other prospective Second-Level Fund Managers will be accepted until January 31. These may include Alternate Investment Funds (AIFs), Development Finance Institutions (DFIs), Non-Banking Financial Companies (NBFCs), and Focused Research Organisations (FROs).

Dr. Singh emphasised the importance of timely implementation of the scheme and effective coordination among scientific departments, stressing that public investment in research and innovation must yield tangible benefits for both industry and society.

He also reviewed steps being taken to simplify procedures, including revisions to implementation guidelines based on stakeholder feedback, to enhance transparency and ease of participation.

With inputs from IANS