The Research, Development and Innovation (RDI) Fund is a ₹1 lakh crore Government of India initiative to strengthen deep-tech research, development, and innovation aligned with the vision of Viksit Bharat 2047. Under the aegis of the Department of Science and Technology (DST), Government of India, and the Anusandhan National Research Foundation (ANRF), the RDI Fund aims to catalyse private sector participation by supporting Eligible Technology Entities in undertaking innovative R&D and transformative manufacturing.
The following sectors have been identified for funding under the scheme: energy security, transition and climate action; Deep technology (Quantum, Robotics and Space); Artificial intelligence for Indian applications; Biotechnology and Medical Technologies; Digital economy and Digital Agriculture. Also, technologies whose indigenization is important for strategic reasons or for economic security and Atmanirbharta and any other sector or technology deemed necessary in the public interest can be considered.
There are three modes of funding as follows:
Loan: Long-term financing with maximum funding: 50% of fund requirement, and matching contribution from company or private investors. The rate of Interest will be @3% to 4% with 12-15years period depending on the project under RDIF. The funding will be disbursed in tranches based on the company’s projected use of funds and milestones achieved. The repayment of the loan, including interest, will be from the completion of the moratorium period.
Equity: Funding may also be available by way of equity participation upto 25% of assistance sought from TDB, provided such investment does not exceed the capital paid-up by the promoters. The remaining 75% will be disbursed as loan. The total equity shares held by TDB should not be more than 25% of total shareholding of the company. Other features will be the same as the Loan.
Loan + Equity (Debt to Equity conversion): In this mode, TDB will provide soft loans to eligible technology entities(ETE) without any immediate obligation for equity participation, thereby providing opportunities to validate their technologies and leverage their innovation. TDB will convert up to 20% of the sanctioned debt into equity at a pre-agreed discounted valuation (typically 5% per annum from the first disbursement, capped at 20%) when the ETE raises a follow-on round at a significantly higher valuation. The exit option for TDB will be (i) in the form of buy back by the promoters or (ii) participating in a strategic / block sale in coordination with other investors (angels/VCs etc.). Other features will be the same as the loan.