Funds Awaited, Govt Showpiece Deep-Tech Initiative Hits Pause, Pg1

Key Highlights:

• India's flagship deep-tech initiative, the Research, Development and Innovation (RDI) Fund, has paused inviting new applications due to a lack of funds.
• The Technology Development Board (TDB), the sole agency currently selecting beneficiaries, announced the closure of applications due to "administrative reasons".
• The Department of Science and Technology (DST), the administrative custodian, has not yet released the necessary funds to the TDB for subsequent rounds.
• The RDI Fund, with a corpus of ₹1 lakh crore over six years, aims to support private companies in critical sunrise sectors like quantum, space, robotics, and AI.
• Concerns about conflict of interest arose in the first round, where 15 of 22 recipients had ties to selection committee members.

Detailed Insights:

• The RDI Fund was approved by the Union Cabinet on July 1, 2025, and formally launched by the Prime Minister on November 3, 2025.
• The DST was allocated ₹23,000 crore for the program, including ₹3,000 crore in the previous budget and ₹20,000 crore in the current year.
• TDB received ₹2,000 crore, which was exhausted in the first round, offering ₹2,192 crore in soft loans to 22 companies.
• The fund is housed under the Anusandhan National Research Foundation (ANRF), an independent statutory body under DST.
• The scheme provides long-term soft loans, covering up to 50% of project costs, with the remaining 50% to be mobilized from non-government sources.
• Selection of eligible companies is to be done by Second Level Fund Managers (SLFMs), with TDB and Biotechnology Industry Research Assistance Council (BIRAC) initially nominated.
• The appointment of additional SLFMs has been delayed, and BIRAC has faced tax-related procedural uncertainties regarding converting loans to equity.
• The slow progress raises doubts about achieving the target of ₹1 lakh crore disbursement within the six-year timeframe.

Key Concepts Involved:

• Deep-tech: Advanced, often disruptive, technologies requiring significant R&D, typically in areas like AI, quantum computing, and biotechnology.
• Statutory Body: An organization established by an Act of Parliament or state legislature, deriving its powers and functions from the statute.
• Soft Loan: A loan with more favorable terms than a conventional market loan, often including lower interest rates and longer repayment periods.
• Conflict of Interest: A situation where a person's private interests could potentially influence their official duties or decisions.