Parliament Question: Research, Development and Innovation Scheme

Executive Summary: On July 1, the Union Cabinet approved a Research, Development, and Innovation (RDI) Scheme with a total outlay of ₹1 lakh crore over 6 years. The Department of Science and Technology (DST) is the nodal agency for the scheme. Funding is intended for projects at Technology Readiness Level (TRL) 4 and above, with financing limited to a maximum of 50% of the project's cost. Key Points / Main Content: * **Scheme Overview:** * Approved RDI Scheme with ₹1 lakh crore outlay over 6 years. * ₹20,000 crore allocated for FY 2025-26. * **Strategic Sectors:** * Focus on energy security, climate action, quantum computing, AI, biotechnology, and the digital economy. * Covers sectors critical for strategic and economic security. * Flexibility to include additional sectors with EGoS approval. * **Financing Details:** * Long-term loans at low/no interest, equity financing, and contributions to DeepTech Fund of Funds. * Excludes grant financing and short-term loans. * Funding limited to 50% of project cost, with the remainder from the project proponent. * EGoS approval required to relax financial limit in exceptional cases. * **Fund Management:** * Special Purpose Fund (SPF) under ANRF as Level 1 Fund Custodian. * Second-Level Fund Managers (SLFMs): AIFs, DFIs, NBFCs, and FROs (BIRAC, TDB, IIT Research Parks). * SLFM approval required from EGoS. * **Implementation and Governance:** * DST is the nodal agency. * ANRF Governing Board provides oversight. * EGoS, Executive Council (EC), and Investment Committees (ICs) handle sector approvals, fund manager selection, project evaluation, and performance review. * **Project Eligibility:** * Funding for projects at Technology Readiness Level (TRL) 4 and above. * Aims to acquire strategically important technologies. * Excludes next-generation RD labs, RDI financing for government entities, and short-term loans. Impact Analysis: * **Research and Development Organizations (FROs, IIT Research Parks):** * *Impact:* Potential to receive funding as Second-Level Fund Managers (SLFMs) and to have their projects funded if they meet the TRL requirements. * *Action Required:* Seek approval from the Empowered Group of Secretaries (EGoS) to act as SLFMs and ensure projects meet TRL 4 and above criteria. * **Alternate Investment Funds (AIFs), Development Finance Institutions (DFIs), Non-Banking Financial Companies (NBFCs):** * *Impact:* Opportunity to serve as Second-Level Fund Managers (SLFMs) for the scheme. * *Action Required:* Seek approval from the Empowered Group of Secretaries (EGoS) to become SLFMs. * **Project Proponents (Applicants seeking funding):** * *Impact:* Access to long-term, low-interest loans and equity financing for R&D projects at TRL 4 and above. * *Action Required:* Ensure projects meet the TRL 4+ requirement and be prepared to fund at least 50% of the project cost. * **Department of Science and Technology (DST):** * *Impact:* Responsible for implementing and overseeing the RDI Scheme as the nodal agency. * *Action Required:* Manage the scheme, coordinate with ANRF, EGoS, EC, ICs, and SLFMs to ensure effective implementation. * **Anusandhan National Research Foundation (ANRF):** * *Impact:* Oversees the SPF, which serves as the Level 1 Fund Custodian. * *Action Required:* Manage the SPF and coordinate with DST, EGoS, EC, ICs, and SLFMs to ensure effective fund allocation and utilization.

Key Entities Referenced