PARLIAMENT QUESTION: LOW-INTEREST, LONG-TERM LOANS/FINANCIAL GRANTS UNDER RDI SCHEME - 29th July 2026 - Ministry of Science and Technology - Gazette Notification PDF
Issued by Ministry of Science and Technology
Read or download the official PDF of this gazette notification issued by the Ministry of Science and Technology on 29th July 2026. Classified under Press Release.
Executive Summary & Key Takeaways
Executive Summary The Research, Development and Innovation (RDI) Scheme, launched in November 2025 with a ₹1 lakh crore outlay over six years, aims to incentivize private sector participation in high-impact R&D. The scheme provides financial assistance through long-term, low-interest loans and equity rather than grants, with ₹2,000 crore already sanctioned to key research organizations. Evaluation is strictly merit-based, focusing on transformative technological advancements across all regions of India, including Tier-2 and Tier-3 cities.
Key Points / Main Content
Financial Outlay and Implementation
- The Union Cabinet approved a total outlay of ₹1 lakh crore over a six-year period starting July 2025.
- Two Focused Research Organisations (FROs)—the Technology Development Board (TDB) and the Biotechnology Industry Research Assistance Council (BIRAC)—have each been sanctioned ₹1,000 crore.
- As of March 2026, ₹500 crore has been disbursed to the TDB for onward financing.
- TDB has approved 22 projects (₹2,192 crore in RDI support), while BIRAC has shortlisted 8 projects (₹390.35 crore).
Nature of Financial Assistance
- The RDI Scheme does not provide financial grants.
- Assistance is extended through long-term, low-interest loans, equity, and equity-linked instruments.
Evaluation and Selection Criteria
- Applications are assessed by an empowered Investment Committee of domain experts, technologists, and investment professionals.
- Selection is based on Technology Readiness Level (TRL), degree of innovation, commercialization potential, market opportunity, and management capability.
- The scheme prioritizes high-risk, high-impact, and transformative innovations over routine or incremental R&D improvements.
- Conventional lending parameters, such as collateral, are secondary to the strategic impact and technological advancement of the project.
Geographic Reach and Accessibility
- The initiative is pan-India; no funds are earmarked for specific states, cities, or regions.
- The scheme specifically encourages participation from Tier-2 and Tier-3 cities to ensure equitable access beyond established metropolitan startup hubs.
- Implementation is carried out through multiple Second-Level Fund Managers (SLFMs).
Impact Analysis
Private Sector Technology Entities and Startups Impact Eligible entities gain access to significant long-term, low-interest capital and equity for high-risk, transformative projects that might not qualify for conventional commercial lending. Action Required Entities must submit proposals that demonstrate high technological innovation and commercialization potential, adhering to the criteria prescribed in the Scheme's Implementation Guidelines.
Focused Research Organisations (TDB and BIRAC) Impact These organizations act as the primary conduits for fund disbursement and project shortlisting under the RDI framework. Action Required TDB must manage the onward financing of approved technology entities, while BIRAC must continue the evaluation and support of shortlisted projects.
Second-Level Fund Managers (SLFMs) Impact They are responsible for the localized implementation of the scheme and the evaluation of eligible proposals. Action Required SLFMs must ensure a transparent, merit-based evaluation process without regional preference, focusing on the criteria set out in the official guidelines.