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
- 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:
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- 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.
- Significance:
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- 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.
