Government Finalizes ₹1 Lakh Crore RDI Fund

The government is finalizing the details for the implementation of the ₹1 lakh crore Research, Development, and Innovation (RDI) fund, which was announced in the Budget and approved by the Cabinet in July. The fund is set to launch by November.

Key Features of the RDI Fund

• Public Funding for Private R&D: For the first time, public funds will be used to support private sector R&D.
• Two-Tier Funding Mechanism: The Department of Science and Technology (DST) will fund companies and projects through second-level fund managers rather than direct investments.
• Operating Channels: The fund will work through venture capital funds, alternative investment funds, and institutions like IITs and the Technology Development Board.
• Support Types: Long-term, low-interest loans to corporates or equity contributions in startups.

Eligibility and Approval Process

• Project Requirements: Projects must involve cutting-edge R&D in sectors like energy, biotechnology, medical devices, deep tech, or AI.
• Investment Conditions: No upper limit on ticket size, but large conglomerates must contribute 50% of the project cost.
• Approval Speed: Efforts are in place to approve applications within a few weeks.

Addressing R&D Spending Gap

• Current Scenario: Private sector accounts for only 30-35% of gross R&D expenditures in India, compared to 70% in advanced economies.
• Objective: The fund aims to de-risk early-stage investments and provide patient capital to correct this imbalance.

Global Technology Context

• Indigenous Capabilities: The geopolitical environment provides an opportunity for India to enhance its indigenous technology development.

Progress in National Quantum Mission (NQM)

• Thematic Hubs: Four hubs focusing on quantum computing, sensing, materials, and communications are established across India.
• Collaboration Network: These hubs work with various institutions and researchers to develop technology for academic and commercial applications.
• Startup Support: Eight startups funded in the first cohort, with applications for the second cohort ongoing.
• Global Competitiveness: India aims to be globally competitive in quantum sensing and communications within 2-3 years.
• Technological Development: Startups like QpiAI are working on 64-qubit systems, with indigenous capabilities expected in the next two years.