Prime Minister Narendra Modi with Union Minister of State for Science and Technology Jitendra Singh during the inauguration of the Emerging Science and Technology Innovation Conclave. Photo: PTI
PM Modi launches Rs 1 lakh cr RDI fund to spur private investment in research
The fund, unveiled at the Emerging Science, Technology and Innovation Conclave, aims to boost private sector investment in research and development and will operate through a two-tier structure
Prime Minister Narendra Modi on Monday (November 3) unveiled the Rs 1 lakh crore Research, Development, and Innovation (RDI) Fund to encourage private sector investment in research and development.
He launched the RDI Fund at the first-ever Emerging Science, Technology and Innovation Conclave (ESTIC), which brings together policymakers, innovators, and global visionaries to advance the government’s Viksit Bharat 2047 vision.
Two-tier funding structure
Modi also released a coffee table book showcasing India’s scientific achievements and a vision document outlining the country’s roadmap for science and technology.
The Department of Science and Technology (DST) will serve as the nodal ministry for the RDI Fund, which will function through a two-tier funding structure.
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At the first level, a Special Purpose Fund (SPF) will be created within the Anusandhan National Research Foundation (ANRF), which will act as the custodian of the Rs 1 lakh crore corpus.
Investment committees to vet proposals
The Fund will not directly invest in industries or start-ups but will instead channel capital through second-level fund managers, including Alternative Investment Funds (AIFs), Development Finance Institutions (DFIs), and Non-Banking Financial Companies (NBFCs), among others.
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Proposals for funding will be submitted by these second-level managers through investment committees comprising experts from financial, business, and technical fields, operating independently of the government.
(With agency inputs)