Disbursal of Loans Under The Research, Development and Innovation (RDI) Fund

Syllabus: GS2/Governance/GS3/Science and Technology

Context

• Soft Loans were disbursed to the 22 private companies under the Research, Development and Innovation (RDI) Fund.

About RDI Fund

• The Research, Development and Innovation (RDI) Fund was created by the government in 2025.
  • The Scheme envisages a corpus of ₹1 lakh crore over a period of six years.
• Aim: To provide collateral-free, low-cost, long-term loans to private sector companies engaged in advanced research and innovation in priority deep-tech sectors like artificial intelligence, quantum technology, space science, defence, robotics, clean energy, semiconductors and digital healthcare.
• Managed By: The fund is housed under the Anusandhan National Research Foundation (ANRF), a recently established statutory body under the Ministry of Science and Technology.
  • A Special Purpose Fund (SPF) has been created under ANRF, which is the custodian of money allocated for the RDI Fund.
• Disbursal of Funds: It is done through organisations designated as Second-Level Fund Managers (SLFMs), which are also responsible for selecting the Eligible Technology Entities (ETEs) for funding.
  • Two organisations have been selected to act as SLFMs: the Technology Development Board (TDB), a statutory body under the Department of Science and Technology, 
  • and the Biotechnology Industry Research Assistance Council (BIRAC), a Section 8 not-for-profit company wholly owned by the Department of Biotechnology.
• Investment Committee: The evaluation and selection of ETEs has been delegated to investment committees, which each SLFM must constitute separately. 
  • SLFMs take the final decision after conducting assessments, including a detailed background check, but a company not recommended by the investment committee does not get selected.
• Type of Loan: The ETEs are eligible for a loan of a maximum of 50% of their project cost from the RDI Fund. These are collateral-free loans, offered at about 2-4% interest, for 15 years.
• Eligibility for Applying: Only technologies that have reached TRL4 stage (products validated under laboratory conditions) are eligible to apply. 
  • Proposals are evaluated on scientific, technological, financial and commercial merits, and a decision is taken by majority.

Source: IE