RDI Scheme — ₹1 Lakh Crore Fund for Deep-Tech R&D, Via Second-Level Fund Managers
Patient capital for research the market will not fund on its own
The Cabinet approved the RDI Scheme on 1 July 2025 with a ₹1 lakh crore outlay, and the Union Budget 2026-27 added ₹20,000 crore. The fund sits with ANRF, a statutory body under the Ministry of Science and Technology. ANRF does not finance startups itself; it lends long-tenure, concessional money to second-level fund managers (SLFMs) — AIFs, development finance institutions, NBFCs and focused research organisations — who deploy it into private companies doing research and development-intensive work.
The Technology Development Board and BIRAC were the first two SLFMs, with ₹2,000 crore each, and issued the first cheques in May 2026. ANRF opened applications for further fund managers in January 2026 and received 193 proposals; more managers are being appointed through 2026.
Two routes, both capped at half
| Route | What the SLFM provides | Cap |
|---|---|---|
| Debt | Loan or optionally convertible debt at concessional rates with long tenure | 50% of the approved project cost |
| Equity | Equity or equity-linked investment alongside private investors | 50% of the value of each funding round |
The remaining half must come from the company or its private investors. That co-funding requirement is deliberate: the scheme is meant to crowd private money into deep-tech, not replace it.
Department and fund managers
DST owns the scheme through its RDI Cell; ANRF houses the fund and appoints and monitors SLFMs. The decision on a specific startup is taken by the SLFM's own committee — for TDB, its technical and financial appraisal; for BIRAC, its expert review. Startups deal with the SLFM, not with ANRF.
Strategic and sunrise domains only
- •Private company, including a DPIIT-recognised startup, doing RDI-intensive work
- •Technology in a strategic or sunrise domain — deep-tech, energy, advanced materials, semiconductors, biotech, space, quantum and similar fields listed by the SLFM
- •A project at a readiness level the SLFM finances — typically TRL 4 and above for TDB
- •Ability to bring the matching 50% from own funds or private investors
What a fund manager's committee reviews
- •Certificate of Incorporation, DPIIT recognition, MoA/AoA, shareholding pattern
- •Detailed project report: technology description, TRL, development plan with milestones, project cost breakdown, timelines
- •Financial statements for the last three years and projections for the loan tenure
- •Evidence of the matching 50% — investor commitment letters, term sheet, or own-funds proof
- •IP position: patents, licences, freedom-to-operate view where relevant
- •Team credentials and any collaborating institution's MoU
- •Regulatory approvals required for the product, and their status
Questions founders ask about the RDI Scheme
No. It is concessional debt, convertible debt or equity from a fund manager. The money must be repaid or it dilutes ownership, but on terms far softer than commercial venture debt.
TDB for engineering and hardware deep-tech with a product path; BIRAC for biotech and life sciences. As ANRF appoints AIF and NBFC managers through 2026, sector-specific options will widen.
Only if the work is genuinely RDI-intensive in a strategic domain — AI infrastructure, cybersecurity or quantum software might qualify; a SaaS product will not.
TDB's appraisal runs through technical and financial review and typically takes several months. Expect the process to move at the pace of a bank project loan, not a seed grant.