About Research Development and Innovation Fund:
- It is a flagship initiative of the Government of India.
- It aims to provide long-term financing or refinancing with long tenors at low or nil interest rates to spur private sector investment in Research Development and Innovation.
- Nodal Department: The Department of Science & Technology (DST).
- Key Objectives of the Research Development and Innovation Fund:
- Encourage the private sector to scale up research, development, and innovation (RDI) in sunrise domains and in other sectors relevant for economic security, strategic purpose, and self-reliance;
- Finance transformative projects at higher levels of Technology Readiness Levels (TRL)
- Support acquisition of technologies which are critical or of high strategic importance
- Facilitate setting up of a Deep-Tech Fund of Funds.
- Governance: The Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overarching strategic direction to the RDI Scheme.
- Funding Mechanism of Research Development and Innovation Fund:
- Implementation Structure:
- Special Purpose Fund (SPF): It will be established within the Anusandhan National Research Foundation (ANRF), which will serve as the custodian of the ₹1 lakh crore corpus. (Fund will not directly invest in industries and startups but will channel capital to Second-level fund managers)
- Second-level fund managers: Who can be Alternative Investment Funds (AIF), Development Finance Institutions (DFI), Non-banking Finance Companies (NBFCs).
- Modes of Financing:
- Long-term loan at low or nil interest rates.
- Financing in the form of equity may also be done, especially in case of startups.
