RDI Fund selects 19 fund managers, commits Rs 7,131 crore in first cohort

The government has approved 19 institutions to deploy capital under its Rs 1 lakh crore Research, Development and Innovation (RDI) Fund, committing Rs 7,131 crore to the first cohort of fund managers as it expands the programme beyond the initial institutions handling applications from deeptech companies. The Empowered Group of Secretaries approved 14 alternative investment funds (AIFs) and five focused research organisations (FROs) at a meeting on October 8, the Department of Science and Technology said in a statement on October 12. The announcement comes days after Abhay Karandikar, member of NITI Aayog and former secretary of the Department of Science and Technology, told Moneycontrol that the government was likely to select 15-20 fund managers by October-end. The government had received around 163 applications from venture capital firms and research organisations seeking to deploy RDI capital. The newly approved institutions will channel funding to companies undertaking research, development and innovation at Technology Readiness Level 4 and above. The fund managers are also expected to mobilise private capital equivalent to the RDI contribution. TDB backlog The announcement comes against the backdrop of a growing pipeline of applications at the Technology Development Board (TDB), one of the first institutions designated to deploy RDI capital. Moneycontrol reported earlier that TDB had received more than 230 proposals since April, including around 175 between June and September. The board had committed around Rs 2,900 crore across 35 projects in its first two cohorts, while another 25 proposals had cleared initial screening and were to be presented to its Investment Committee. The surge led TDB to pause fresh applications from September 30. In a September 29 notification, it said the funding call was being closed "due to administrative reasons". The pause was aimed at clearing the existing evaluation backlog, rather than reflecting a shortage of government funding. TDB's detailed technical and financial assessment process, combined with the volume of proposals, had slowed the pace at which applications could be evaluated. The selection of additional fund managers creates more channels through which the government can deploy capital. The RDI Fund had initially relied on TDB and the Biotechnology Industry Research Assistance Council (BIRAC), before opening applications to other institutions. The government said the first cohort was selected through a multi-stage process involving an assessment of applications, interactions with an Expert Advisory Committee, and consideration by the Executive Council of the Anusandhan National Research Foundation before final approval. Private capital push The RDI Fund, approved by the Union Cabinet in July 2025 with an outlay of Rs 1 lakh crore over six years, aims to address the funding gap for high-risk research and strategic technologies, including artificial intelligence, robotics, quantum technology, biotechnology and space. Under the scheme, government support is capped at 50 percent of the assessed project cost, with the remainder expected to come from private investors or the companies themselves. For venture capital funds, the government-backed fund invests as a limited partner, allowing selected funds to support deeptech startups. Research organisations can also channel capital towards research and commercialisation. The government said the RDI Fund would continue to invite applications and onboard additional cohorts of fund managers in the coming months. The group of secretaries also approved five additional technologies for coverage under the scheme.