ANRF approves key decisions to operationalise ₹1 Lakh Cr RDI fund

The Executive Council of the Anusandhan National Research Foundation (ANRF) has approved major decisions to operationalise the Research Development and Innovation (RDI) Fund, a ₹1 lakh crore initiative launched by the Government to promote private sector-led research, development, and innovation in sunrise domains.

The Council sanctioned the establishment of a Special Purpose Fund (SPF) for the RDI scheme and approved the Implementation Guidelines along with the governance framework. In addition, the Executive Council adopted the Special Financial Rules and the Management Team Position and Compensation, as sanctioned by the Ministry of Finance. These measures mark a significant step towards the launch of the RDI Fund in the coming months.

The Implementation Guidelines and Special Financial Rules were prepared by the Department of Science & Technology (DST) following extensive consultations with stakeholders and with the concurrence of the Department of Economic Affairs (DEA) and Department of Expenditure (DoE). These frameworks are intended to ensure efficient governance, transparent fund management, and seamless execution of the scheme, fostering increased private sector participation.

The RDI Fund, approved by the Union Cabinet on 1 July 2025, is structured to operate through a two-tiered funding mechanism. At the first level, the SPF within ANRF will serve as the custodian of the ₹1 lakh crore corpus. The fund will not invest directly in industries or startups. Instead, it will channel capital to second-level fund managers, including Alternative Investment Funds (AIFs), Development Finance Institutions (DFIs), Non-Banking Financial Companies (NBFCs), and other eligible investment entities.

Investment recommendations will be made by investment committees comprising financial, business, and technical experts, operating at arm’s length from the government. This structure is designed to ensure professional decision-making and risk management while promoting private sector-driven innovation.

The RDI Fund aims to strengthen India’s domestic research and innovation ecosystem in critical and emerging sectors, including artificial intelligence, biotechnology, quantum computing, clean energy, and space technology. By enabling Indian startups and enterprises to access long-term capital, the initiative seeks to reduce dependence on foreign technologies and enhance domestic capabilities in high-tech domains.

The Department of Science & Technology (DST) will serve as the nodal ministry for the scheme, with the ANRF overseeing the implementation and administration of the fund. The two-tier mechanism, along with the governance and financial frameworks, is expected to provide a robust foundation for scaling research and innovation activities in India over the coming years.