Big Push for Private Research
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a new Research Development and Innovation (RDI) Scheme worth ₹1 lakh crore. It aims to encourage private companies to invest more in research, development, and innovation.
How the Scheme Works
- Provides long-term loans at very low or zero interest rates.
- Supports projects in sunrise industries, strategic sectors, and areas important for economic security.
- May offer equity investment, especially for startups.
- Includes a Deep‑Tech Fund of Funds to support cutting-edge technologies.
Who Will Manage It?
- The Anusandhan National Research Foundation (ANRF) board, led by the Prime Minister, will set the direction.
- The Executive Council will define guidelines, select fund managers, and identify target projects.
- An Empowered Group of Secretaries, led by the Cabinet Secretary, will review performance and suggest adjustments.
- The Department of Science & Technology (DST) will implement the scheme.
Funding Structure
Funds are managed in two tiers:
- Tier 1: A Special Purpose Fund (SPF) housed in ANRF holds all funds.
- Tier 2: Money flows to fund managers, who offer long-term loans or equity to projects.
Why This Is Important
- Aims to solve the issue of expensive and short-term funding in private R&D.
- Seeks to support deep-tech innovation, technology adoption, and global competitiveness.
- This move is part of the roadmap toward Viksit Bharat 2047, promoting innovation and self-reliance.
This new RDI scheme is a bold step to build a strong innovation ecosystem in India by making it easier for private businesses to fund and adopt advanced research.