NEW DELHI: The government plans to reopen applications under the Rs. 1 lakh crore Research, Development and Innovation (RDI) Fund after reviewing nearly 400 proposals currently under scrutiny, as India seeks to expand private-sector investment in advanced technologies and deep-tech innovation.

Rajesh Kumar Pathak, Secretary of Technology Development Board (TDB), said the application window was temporarily closed due to a surge in submissions and the time required to complete technical and commercial assessments.

The fund is designed to support domestic companies developing strategic technologies and help advance the government’s Viksit Bharat 2047 vision. Pathak said science and technology-led innovation would be central to India’s long-term development and self-reliance objectives.

Application window paused amid heavy demand

The TDB temporarily suspended its call for proposals after receiving a substantial number of applications. The investment committee is evaluating the submissions to assess their technological potential, commercial viability and suitability for funding.

Pathak indicated that fresh applications would be invited once the existing proposals had been screened and the evaluation process had progressed sufficiently. The board currently has a sizeable pipeline of projects to assess.

Launched in November 2025, the RDI Fund aims to encourage private companies to undertake research projects that may involve significant initial costs and commercial risks. The Rs. 1 lakh crore programme is intended to provide patient capital for technology development and accelerate the transition from research to market-ready products.

Deep-tech companies among key beneficiaries

The fund covers projects in emerging and strategic areas, including quantum technology, artificial intelligence (AI), biotechnology, space and other advanced technology fields.

According to Pathak, industry interest has been encouraging, particularly among startups working on deep-tech solutions and technologies with the potential to generate intellectual property.

The scheme supports projects from Technology Readiness Level (TRL) 4 onwards, subject to the applicable guidelines. Through the TDB, eligible companies at more advanced stages of development, including TRL 6–7, may receive support covering up to 50% of their capital requirements for establishing manufacturing facilities, as outlined in the reported framework.

The initiative is intended to address a longstanding challenge in India's innovation ecosystem: limited private-sector participation in research and development, partly because companies are reluctant to absorb the financial risks associated with early-stage technology development.

Government seeks greater private-sector R&D spending

India's research and development expenditure remains relatively low compared with that of major global economies. The source report puts the country's R&D spending at around 0.8%, with the private sector contributing approximately 30% of the total.

The RDI Fund seeks to encourage businesses to increase investment in technology development, strengthen domestic manufacturing capabilities and reduce dependence on imported critical technologies.

The funding mechanism operates through the Department of Science and Technology (DST), with the Anusandhan National Research Foundation (ANRF) serving as the first-level fund manager and institutions such as TDB and the Biotechnology Industry Research Assistance Council (BIRAC) functioning as second-level fund managers.

Semiconductor project receives Rs. 130 crore support

In a recent development, the TDB and DST entered into an agreement to provide Rs. 130 crore in financial support to Bengaluru-based BigEndian Semiconductors for its Project VeerAI. The assistance is being provided through optional convertible debt under the RDI Fund.

The project illustrates the programme's focus on supporting domestic technology companies working in strategically important sectors.

As the government processes the current application pipeline, the timing of the next call for proposals will depend on the progress of the ongoing scrutiny. The eventual reopening is expected to give more companies an opportunity to seek support for research-intensive projects and technology commercialisation.

The programme's broader objective is to strengthen India's deep-tech ecosystem, encourage private investment and help convert domestic research capabilities into commercially viable products.