India’s Research Development and Innovation Scheme
In move to enhance India’s research and innovation landscape, the Union Cabinet has approved the Research Development and Innovation (RDI) Scheme. This initiative, led by Prime Minister Shri Narendra Modi, allocates a substantial corpus of Rs. One lakh Crore. The scheme aims to invigorate private sector involvement in research and innovation, recognising its very important role in economic growth and self-reliance.
Objectives of the RDI Scheme
The RDI Scheme is designed with several key objectives.
- Encourage the private sector to invest in research and innovation, particularly in sunrise sectors that are crucial for economic security.
- Finance transformative projects that demonstrate higher Technology Readiness Levels (TRL).
- Support the acquisition of technologies deemed critical for national interest. Lastly, it facilitates the establishment of a Deep-Tech Fund of Funds to promote advanced technological development.
Funding Mechanism
The RDI Scheme features a two-tiered funding mechanism. The first tier involves a Special Purpose Fund (SPF) within the Anusandhan National Research Foundation (ANRF). This fund will manage the allocation of resources to various second-level fund managers. Funding will primarily be provided as long-term concessional loans, often at low or nil interest rates. In some circumstances, equity financing will also be available, particularly for startups.
Governance Structure
The governance of the RDI Scheme is structured to ensure effective oversight and strategic direction. The Prime Minister chairs the Governing Board of the ANRF, which guides the scheme’s overarching strategy. The Executive Council of the ANRF will establish the guidelines for the scheme and recommend suitable fund managers and project types. An Empowered Group of Secretaries (EGoS), led by the Cabinet Secretary, will oversee the approval of project types, fund managers, and any necessary changes to the scheme.
Implementation and Impact
The Department of Science and Technology (DST) is designated as the nodal department responsible for implementing the RDI Scheme. By addressing the private sector’s need for long-term, affordable financing, the scheme aims to encourage self-reliance and enhance global competitiveness. This initiative is important step towards achieving the vision of Viksit Bharat by 2047, positioning India as a leader in innovation and technology.
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