The Research Development and Innovation (RDI) Scheme, a significant initiative with a corpus of ₹1 lakh crore, was approved by the Union Cabinet on Tuesday. Its goal is to greatly increase private sector investment in R&D and innovation. Prime Minister Narendra Modi presided over a Cabinet meeting that approved the plan, which is anticipated to be crucial in creating a strong ecosystem that fosters technological development and independence.
The RDI scheme is aimed at encouraging private sector participation in research across sunrise domains, as well as sectors crucial to economic security, strategic interests, and national self-reliance, said Information and Broadcasting Minister Ashwini Vaishnaw, who made the announcement. One of the main obstacles preventing private investment in research is addressed by the scheme's design, which offers long-term financing or refinancing with low or zero interest rates.
According to Vaishnaw, the programme was specifically created to help the private sector overcome its financial limitations. It seeks to boost India's competitiveness internationally, encourage the adoption of cutting-edge technologies, and provide growth and risk capital to strategic and developing industries. Supporting transformative projects that have attained high levels of technological readiness and encouraging the acquisition of crucial or strategically significant technologies are two of the main objectives. The plan also calls for the establishment of a deep-tech fund of funds to encourage cutting-edge inventions.
The scheme will be centrally coordinated by the Anusandhan National Research Foundation (ANRF). The Prime Minister will serve as the chair of its Governing Board, which will give overall strategic guidance. The ANRF Executive Council will be in charge of establishing policies, choosing industries, suggesting second-level fund managers, and deciding what kinds of projects should be funded in the interim.
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Under the direction of the Cabinet Secretary, an Empowered Group of Secretaries will be in charge of approving changes to the plan, choosing fund managers, identifying sectors, and conducting regular evaluations of the program's development. The nodal agency in charge of carrying out the RDI plan will be the Department of Science and Technology (DST).
There will be two funding tiers for the program. A Special Purpose Fund (SPF) will be established under the ANRF to act as the main custodian of the funds at the first tier. Second-level fund managers will subsequently receive these funds and use them to fund specific R&D initiatives.
Usually given in the form of long-term concessional loans, funding is best suited for research and innovation initiatives that might need ongoing assistance over an extended period of time. Equity financing may also be taken into consideration in the case of startups. Contributions to deep-tech-focused funds of funds or other comparable vehicles intended to foster innovation in high-potential fields are also permitted under the scheme.
Minister Vaishnaw came to the conclusion that the RDI Scheme would support the government's long-term goal of creating a Viksit Bharat (Developed India) by 2047, encourage self-reliance, and increase global competitiveness by meeting the private sector's need for reasonably priced, long-term capital.
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