PM rolls out ₹1 trn RDI fund for 'high-risk, high-impact projects'

Prime Minister Narendra Modi on Monday unveiled a ₹1 trillion research, development and innovation (RDI) fund aimed at spurring private sector-led research and technological advancement across the country.

- UDISHA SRIVASTAV

The announcement was made at the inauguration of the Emerging Science, Technology and Innovation Conclave (ESTIC) 2025, marking one of the government's major steps to institutionalise innovation financing.

The Department of Science and Technology (DST) will serve as the nodal ministry for the fund, which will operate through a two-tiered structure.

At the first level, a Special Purpose Fund (SPF) under the Anusandhan National Research Foundation will act as the custodian. Rather than investing directly in startups or companies, the SPF will channel capital through a second layer of professional fund managers.

They include alternate investment funds (AIFS), development finance institutions (DFIs), nonbanking financial companies (NBFCs), and focused research organisations (FROS) such as the Technology Development Board (TDB), Biotechnology Industry Research Assistance Council (BIRAC), and IIT Research Parks.

Financing under the RDI fund will take the form of longterm, low-interest - or in some cases, interest-free loans, equity infusion (especially for startups), and allocations to the deeptech fund of funds. The scheme doesn't support grants and short-term loans.