**Executive Summary**
The Union Cabinet approved the Research, Development and Innovation (RDI) Scheme on 01 July 2025, with a corpus of ₹1 lakh crore over six years, to enhance private sector participation and strengthen financing support for deep-tech startups. The Scheme was launched on 03 November 2025. TDB has also launched its first call for project proposals under the RDI Scheme on 04 February 2026.
**Key Points / Main Content**
* **Scheme Overview:**
* The RDI Scheme supports Deep-Tech Funds of Funds.
* It is demand-driven and outcome-oriented, not city- or State-specific.
* Proposals are evaluated based on technological merit, strategic relevance, and potential economic impact.
* ₹20,000 crore is allocated in the Union Budget for FY 2025–26 for implementation.
* **Fund Management:**
* Technology Development Board (TDB) and Biotechnology Industry Research Assistance Council (BIRAC) are approved as Second Level Fund Managers (SLFMs).
* A call for additional SLFM applications closed on 31 January 2026.
* A transparent and competitive mechanism is in place for engaging SLFMs, including Alternate Investment Funds (AIFs) and Development Finance Institutions (DFIs).
* **Focus Areas:**
* Sunrise sectors include energy security, deep technologies (quantum computing, robotics, space technologies), AI (agriculture, health, education), biotechnology, biomanufacturing, digital economy, and technologies critical for strategic and economic requirements.
* **Application and Evaluation:**
* A Notice Inviting Applications (NIA) has been published, outlining the Quality and Cost Based Selection (QCBS) methodology, eligibility, evaluation parameters, and selection criteria.
* Applications are evaluated per the QCBS framework.
* The Executive Council (EC) recommends SLFMs to the Empowered Group of Secretaries (EGoS) for final approval.
**Impact Analysis**
**Stakeholder: Private Sector**
* **Impact:** Enhanced opportunities to participate in research and development with strengthened financial support for high-risk, high-impact innovation, including deep-tech startups.
* **Action Required:** Participate in R&D, and be ready to align with the objectives of the RDI Scheme for mobilizing and deploying capital.
**Stakeholder: Technology Development Board (TDB) and Biotechnology Industry Research Assistance Council (BIRAC)**
* **Impact:** Serve as Second Level Fund Managers (SLFMs) under the scheme.
* **Action Required:** Manage funds effectively under the RDI Scheme, with TDB launching the first call for project proposals.
**Stakeholder: Alternate Investment Funds (AIFs) and Development Finance Institutions (DFIs)**
* **Impact:** Potential to be engaged as Second Level Fund Managers (SLFMs) for deploying capital.
* **Action Required:** Apply to become SLFMs and meet the transparent and competitive selection criteria.
**Stakeholder: Executive Council (EC)**
* **Impact:** Evaluate applications and recommend suitable SLFMs.
* **Action Required:** Evaluate applications based on the prescribed QCBS framework and recommend suitable SLFMs to the Empowered Group of Secretaries (EGoS) for final approval.
**Stakeholder: Empowered Group of Secretaries (EGoS)**
* **Impact:** Provide final approval for SLFMs recommended by the Executive Council (EC).
* **Action Required:** Review recommendations from the Executive Council (EC) and provide final approval for SLFMs.
Key Entities Referenced
Research, Development and Innovation (RDI) Scheme: A scheme to enhance private sector participation in research and development and strengthen financing support for high-risk, high-impact innovation, including deep-tech startups. The scheme includes provisions for supporting Deep-Tech Funds of Funds
Deep-Tech Fund of Funds: A component of the RDI Scheme, aimed at supporting deep-tech startups.
Technology Development Board (TDB): Approved as a Second Level Fund Manager (SLFM) under the RDI Scheme.
Biotechnology Industry Research Assistance Council (BIRAC): Approved as a Second Level Fund Manager (SLFM) under the RDI Scheme.
Notice Inviting Applications (NIA): Document inviting applications from eligible entities under the RDI Scheme, outlining the Quality and Cost Based Selection (QCBS) methodology and eligibility conditions.
Ministry of Science & Technology
PARLIAMENT QUESTION:
OPERATIONALISATION OF DEEP TECH FUND
OF FUNDS
Posted On: 11 FEB 2026 5:00PM by PIB Delhi
The Union Cabinet approved the Research, Development and Innovation (RDI) Scheme on 01 July
2025 with the objective of enhancing private sector participation in research and development and
strengthening financing support for high-risk, high-impact innovation, including deep-tech startups. The
Scheme envisages a corpus of ₹1 lakh crore over a period of six years and includes provisions for
supporting Deep-Tech Funds of Funds.
The RDI Scheme was launched on 03 November 2025 by the Hon’ble Prime Minister. Subsequently, the
implementation framework was operationalised through preparation and approval of the Scheme
Implementation Guidelines, Special Financial Rules, and issuance of Notices Inviting Applications.
Under the Scheme, Technology Development Board (TDB) and Biotechnology Industry Research
Assistance Council (BIRAC) have been approved as Second Level Fund Managers (SLFMs) on a
nomination basis, as per the Cabinet approval. Further, a call inviting applications from additional SLFMs
was issued, which closed on 31 January 2026, and the selection process is currently underway. TDB has
also launched its first call for project proposals under the RDI Scheme on 04 February 2026.
The RDI Scheme, including the proposed Deep-Tech Fund of Funds, is not city- or State-specific, and
projects are supported across the country based on a demand-driven and outcome-oriented approach.
Proposals are evaluated on the basis of technological merit, strategic relevance, and potential
economic impact.
The overall corpus of the RDI Scheme is ₹1 lakh crore for six years, with an allocation of ₹20,000 crore
provided in the Union Budget for FY 2025–26 for its implementation. The corpus earmarked
specifically for the Deep-Tech Fund of Funds is not pre-fixed and will be determined based on demand,
quality of proposals, and outcomes achieved during the implementation period. The utilisation of funds
will be aligned with the phased roll-out of the Scheme over the six-year timeframe.
The sunrise sectors identified under the RDI Scheme include energy security and energy transition
including climate action; deep technologies such as quantum computing, robotics and space technologies;
artificial intelligence and its applications in agriculture, health and education; biotechnology,
biomanufacturing, synthetic biology, pharmaceuticals and medical devices; and the digital economy
including digital agriculture. The Scheme will also support technologies critical for strategic requirements,
economic security and Atmanirbharta, as well as any other sector or technology considered necessary in
public interest.
A transparent and competitive mechanism has been put in place for the engagement of Second Level
Fund Managers (SLFMs), including Alternate Investment Funds (AIFs), Development Finance
Institutions (DFIs) and other eligible fund managers, for deployment of capital under the Research,Development and Innovation (RDI) Scheme.
Accordingly, a Notice Inviting Applications (NIA) has been published in line with the approvals
contained in the Cabinet Note, inviting applications from eligible entities. The NIA clearly lays down the
Quality and Cost Based Selection (QCBS) methodology, along with detailed eligibility conditions,
evaluation parameters, weightages, and selection criteria to ensure transparency and objectivity in the
selection process.
Applications received pursuant to the NIA are being evaluated as per the prescribed QCBS framework.
Based on the evaluation, the Executive Council (EC) will recommend suitable SLFMs to the Empowered
Group of Secretaries (EGoS) for final approval. This structured selection mechanism ensures fairness,
transparency, and alignment with the objectives of the RDI Scheme in mobilising and deploying capital
for deep-tech and high-impact R&D initiatives.
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AK/FK
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