Executive Summary:
The Government of India, through the Department of Science and Technology, is implementing the Research, Development, and Innovation (RDI) Scheme to incentivize private sector participation in R&D. Approved on July 1st with a total outlay of ₹1 lakh crore over 6 years, the scheme aims to finance transformative RDI projects in strategic technology sectors. The Department of Science and Technology (DST) is the nodal agency and ₹20,000 crore has been allocated for the Financial Year 2025-26.
Key Points / Main Content:
* **Scheme Overview:**
* The Research, Development, and Innovation (RDI) Scheme incentivizes private sector involvement in R&D.
* Builds upon existing initiatives like Atal Innovation Mission and National Quantum Mission.
* **Financial Details:**
* Total outlay of ₹1 lakh crore over 6 years.
* ₹20,000 crore allocated for Financial Year 2025-26.
* Financing includes long-term loans at low/no interest, equity financing, and contributions to the DeepTech Fund of Funds.
* Grant financing and short-term loans are excluded.
* Financing limited to a maximum of 50% of the project's assessed cost, with the project proponent covering the remaining funds.
* **Eligible Sectors:**
* Energy security, climate action, quantum computing, AI, biotechnology, and the digital economy.
* Sectors critical for strategic and economic security.
* Flexibility to include additional sectors with EGoS approval.
* **Implementation Structure:**
* A Special Purpose Fund (SPF) under ANRF serves as the Level 1 Fund Custodian.
* Second-Level Fund Managers (SLFMs) such as AIFs, DFIs, NBFCs, and FROs (e.g., BIRAC, TDB, IIT Research Parks) will carry out implementation, with EGoS approval.
* **Project Eligibility:**
* Finances RDI projects with transformative potential at TRLs 4 and above.
* Excludes next-generation R&D labs, RDI financing for government entities, and short-term loans.
* Avoids overlap with the ANRF and allows for acquisition of strategically important technologies.
* The financial limit for government share in financing can be relaxed with the approval of the EGoS in exceptional cases.
* **Oversight and Governance:**
* DST is the nodal agency.
* Governing Board of ANRF provides oversight.
* EGoS, EC, and ICs are responsible for sector approvals, fund manager selection, project evaluation, and performance review.
* **Consultation and Guidelines:**
* Extensive consultations with over 10,000 stakeholders.
* Inter-ministerial coordination with the Department of Economic Affairs (DEA).
* Guidelines are under formulation in consultation with DEA and the Department of Expenditure (DoE).
Impact Analysis
* **Private Sector:**
* Impact: Provides financial incentives (loans, equity) to encourage investment in R&D within strategic technology sectors, potentially leading to growth and innovation.
* Action Required: Evaluate the RDI scheme, identify relevant projects, and prepare proposals to secure funding.
* **Fund Managers (AIFs, DFIs, NBFCs, FROs):**
* Impact: Opportunity to serve as Second-Level Fund Managers (SLFMs), managing and distributing funds to RDI projects.
* Action Required: Seek approval from the Empowered Group of Secretaries (EGoS) to become SLFMs and develop expertise in evaluating and managing RDI projects.
* **Department of Science and Technology (DST):**
* Impact: Responsible for overseeing and governing the RDI scheme as the nodal agency.
* Action Required: Finalize scheme guidelines in consultation with DEA and DoE and ensure effective implementation and monitoring of the scheme.
* **Empowered Group of Secretaries (EGoS):**
* Impact: Holds significant decision-making power, including approving sectors, fund managers, and project evaluations.
* Action Required: Review and approve sectors, fund managers, and projects based on strategic importance and potential impact.
Key Entities Referenced
Research, Development, and Innovation RDI Scheme: A scheme approved by the Union Cabinet to incentivize private sector participation in research and development.
Atal Innovation Mission: A flagship initiative of the Government of India to promote innovation and entrepreneurship.
National Supercomputing Mission: A flagship initiative of the Government of India to enhance supercomputing capabilities.
India Semiconductor Mission: A flagship initiative of the Government of India focused on developing the semiconductor industry.
National Quantum Mission: A program reflecting the government's strategic intent to lead in next-generation technologies related to quantum computing.
India AI Mission: A program reflecting the government's strategic intent to lead in next-generation technologies related to artificial intelligence.
National Green Hydrogen Mission: A program reflecting the government's strategic intent to lead in next-generation technologies related to green hydrogen.
Anusandhan National Research Foundation ANRF: A foundation under which a Special Purpose Fund SPF will serve as the Level 1 Fund Custodian for the RDI Scheme.
GOVERNMENT OF INDIA
MINISTRY OF SCIENCE AND TECHNOLOGY
DEPARTMENT OF SCIENCE AND TECHNOLOGY
LOK SABHA
STARRED QUESTION No. *159
ANSWERED ON 30/07/2025
SCHEME TO INCENTIVISE R&D IN PRIVATE SECTOR
*159. SMT. D K ARUNA:
SHRI EATALA RAJENDER:
Will the Minister of SCIENCE AND TECHNOLOGY be pleased to
state:
(a) whether the Government is working out or already
implementing any scheme to incentivise private sector under
Research and Development (R&D) and if so, the details thereof;
(b) whether views of experts, if any, were taken into consideration
and task forces/committees/commissions appointed/reports received
in this regard and any action has been taken thereon;
(c) if so, the details thereof and the steps initiated and results
achieved; and
(d) the details of funds sanctioned, spent therefor and the present
status thereof, State-wise particularly for Telangana and Tamil Nadu?
ANSWER
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE
MINISTRY OF SCIENCE AND TECHNOLOGY AND EARTH SCIENCES
(DR. JITENDRA SINGH)
विज्ञान और प्रौद्योगिकी तथा पथ्ृ िी विज्ञान मंत्रालय के राज्य मंत्री (स्ितंत्र प्रभार)
(डॉ. जितेंद्र स हं )
(a) to (d): A statement is laid on the Table of the House.
Page 1 of 3STATEMENT AS REFERRED IN REPLY TO PARTS (a) to (d) OF LOK
SABHA STARRED QUESTION NO. 159 FOR 30.07.2025 REGARDING
“SCHEME TO INCENTIVISE R&D IN PRIVATE SECTOR”
(a) to (d): Yes, on July 1, the Union Cabinet approved the
Research, Development, and Innovation (RDI) Scheme to incentivize
private sector participation in research and development (R&D).
The Government of India is already actively implementing a range of
Flagship initiatives such as the Atal Innovation Mission, the National
Supercomputing Mission, and the India Semiconductor Mission laid
the early groundwork for a robust innovation ecosystem for
manufacturing and advanced technology development. Building on
this foundation, newer programs like the National Quantum Mission,
the India AI Mission, and the National Green Hydrogen Mission reflect
the government’s strategic intent to lead in next-generation
technologies.
A new RDI scheme has a total outlay of ₹1 lakh crore over 6 years.
Technology sectors of strategic importance have been identified
under the RDI Scheme. These include energy security, climate action,
and deep technologies such as quantum computing, artificial
intelligence, biotechnology, and the digital economy. The scheme
also covers sectors critical for strategic and economic security, with
the flexibility to include additional sectors based on approval from
the Empowered Group of Secretaries (EGoS). The nature of financing
under this scheme includes long-term loans (at low or no interest),
equity financing, and contributions to the Deep-Tech Fund of Funds.
Grant financing and short-term loans are not envisaged under the
scheme.
A Special Purpose Fund (SPF) under the Anusandhan National
Research Foundation (ANRF) will serve as the Level 1 Fund
Custodian. Implementation will be carried out by Second-Level Fund
Managers (SLFMs), including Alternate Investment Funds (AIFs),
Development Finance Institutions (DFIs), Non-Banking Financial
Companies (NBFCs), and Focused Research Organizations (FROs),
such as BIRAC, TDB, and IIT Research Parks, with approval from the
Empowered Group of Secretaries (EGoS).
Page 2 of 3The scheme is intended to finance RDI projects with transformative
potential at TRLs 4 and above, avoid overlap with the ANRF, and allow
for the acquisition of strategically important technologies. However,
the financing excludes next-generation R&D labs, RDI financing for
government entities, and short-term loans. Financing will be limited
to a maximum of 50% of the project's assessed cost, with the
remaining funds arranged by the project proponent. In exceptional
types of projects/sectors, the financial limit for government share in
financing can be relaxed with the approval of the EGoS.
The Department of Science & Technology (DST) is the nodal agency
for the scheme. Oversight and governance are provided by the
Governing Board of ANRF, while the EGoS, Executive Council (EC),
and Investment Committees (ICs) are responsible for sector
approvals, fund manager selection, project evaluation, and overall
performance review.
The Department of Science and Technology (DST) held extensive
consultations with over 10,000 stakeholders, including experts from
academia, industry, start-ups, and the research community during the
Post-Budget Webinar. Subsequently, several follow-up meetings were
conducted with industry personnel, financial institutions, and
subject-matter experts to deepen the deliberations and incorporate
sector-specific inputs. These consultations were aimed at gathering
diverse perspectives to inform the formulation and implementation
process. A report has also been prepared based on the
recommendations received during the Post-Budget Webinar.
Furthermore, inter-ministerial coordination and discussions were
undertaken in consultation with the Department of Economic Affairs
(DEA).
The relevant guidelines are currently under formulation and will be
finalized in consultation with the Department of Economic Affairs
(DEA) and the Department of Expenditure (DoE).
A total amount of ₹20,000 crore has been allocated for the Financial
Year 2025–26.
*****
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