PARLIAMENT QUESTION: RDI FUND UNDER ANRF

Key Highlights:

• The Research, Development and Innovation (RDI) Fund of ₹1 lakh crore was approved on July 1, 2025, and launched on November 3, 2025.
• Technology Development Board (TDB) and Biotechnology Industry Research Assistance Council (BIRAC) were designated as initial Second Level Fund Managers (SLFMs).
• TDB disbursed ₹500 crore and approved 22 projects with ₹2,192 crore RDIF support; BIRAC shortlisted 8 projects for ₹390.35 crore.
• The fund targets strategic technology sectors including energy, climate action, deep tech, AI, biotechnology, and digital economy.
• RDIF supports projects at Technology Readiness Level (TRL) 4 or above, covering up to 50% of the total assessed project cost.

Detailed Insights:

• The RDI Fund aims to foster innovation and self-reliance by supporting eligible technology entities in critical sectors.
• It operates through a multi-tier structure involving SLFMs, Alternative Investment Funds (AIFs), and Focused Research Organisations (FROs).
• Extensive consultations and outreach programs were conducted with various stakeholders across the country.
• Research parks in leading academic and technological institutions like IITs and IISc are considered partner institutions under the FRO category.
• The scheme encourages mobilization of private and commercial capital through a blended financing framework.
• The government's roadmap includes onboarding additional SLFMs and expanding the network of participating AIFs and FROs.

Key Concepts Involved:

• Research, Development and Innovation (RDI) Fund: A government fund established to promote research, development, and innovation in strategic technology sectors.
• Second Level Fund Managers (SLFMs): Entities like TDB and BIRAC that channel RDIF capital to eligible technology entities.
• Technology Readiness Level (TRL): A scale from 1 to 9 used to assess the maturity of a technology, with TRL 4 indicating basic technological components integrated.
• Alternative Investment Funds (AIFs): Privately pooled investment vehicles that collect funds from investors for investing in accordance with a defined investment policy.
• Focused Research Organisations (FROs): Research-focused entities, including academic and technological institutions, partnering to channel RDIF support.