Centre approves 22 projects under RDI Fund, eight more shortlisted

The government’s Rs 1 lakh crore Research, Development and Innovation (RDI) Fund has moved into active deployment, with the Technology Development Board (TDB) approving 22 projects worth a combined Rs 4,744 crore.

The RDI Fund was approved by the Union Cabinet on July 1, 2025, and formally launched by the Prime Minister on November 3, 2025. During FY 2026, TDB and the Biotechnology Industry Research Assistance Council (BIRAC) were designated Second Level Fund Managers (SLFMs) under the Focused Research Organisations (FRO) category, and Rs 500 crore was disbursed to TDB in March 2026 for investment in eligible technology entities.

Of the 22 projects cleared by TDB, RDIF support accounts for Rs 2,192 crore of the total project cost. Separately, BIRAC has shortlisted eight projects worth Rs 390.35 crore for support under the scheme.

The government has also received strong interest from fund managers seeking to come on board. A total of 162 applications from Alternative Investment Funds (AIFs) and 38 from Focused Research Organisations (FROs) are currently under review by the competent sanctioning authority, representing a combined proposed commitment of around Rs 8,000 crore.

The Fund targets strategic sectors including energy security and transition, climate action, deep technologies such as quantum computing, robotics and space, artificial intelligence applications in agriculture, health and education, biotechnology, biomanufacturing, synthetic biology, pharmaceuticals, medical devices, and the digital economy. Sectors critical to indigenisation, strategic and economic security, and Atmanirbharta are also within scope, along with any others deemed necessary in the public interest.

Since the launch, the government has held outreach programs in Mumbai, Bengaluru, Panchkula and Delhi, drawing participation from academia, venture capitalists, fund managers, start-ups, industry and research institutions. Under the FRO category, research parks at institutions such as the IITs and IISc are being considered as partner institutions to channel RDIF capital toward innovation-led start-ups in critical technology sectors.

Under RDIF guidelines, SLFMs can deploy capital only for projects at Technology Readiness Level (TRL) 4 or above, with support capped at 50 percent of the assessed project cost. For loans, RDIF backing is limited to 50 percent of project cost; for equity or equity-linked instruments, it is capped at 50 percent of each funding round’s value, with the remainder to be mobilised by project proponents.

TDB and BIRAC have each been sanctioned Rs 1,000 crore under the Fund so far. The government’s roadmap includes onboarding additional SLFMs, expanding the AIF and FRO network, mobilising private capital through blended financing, broadening sectoral support, and deepening stakeholder outreach.
MB Bureau