RDIF SCHEME-TDB AS SECOND LEVEL FUND MANAGER (SLFM)
About RDIF
Research Development and Innovation Fund (RDIF) is a flagship initiative under the Department of Science and Technology (DST), Government of India.
- Designed to accelerate investment in India's R&D and Innovation ecosystem.
- Shall support private sector enterprises, startups, and industries working in sunrise and strategic sectors to transform ideas into globally competitive technologies and products
Approved by the Union Cabinet on 1 July 2025, the Research, Development and Innovation (RDI) Scheme aims to catalyse private sector investment in R&D with a total outlay of ₹1 lakh crore over six years, including ₹20,000 crore in FY 2025-26.
OBJECTIVE
- Encouraging Private Sector Involvement: Incentivize active participation from industry players in cutting-edge research and innovation.
Promoting Strategic Technologies: Focus on mission-critical areas that are vital for national development and global competitiveness, including:
Energy security and transition, and climate action;
‘Deep technologies’ including quantum computing, robotics and space;
Artificial intelligence and its applications to Indian problems including in agriculture, health, and education
Biotechnology, biomanufacturing, synthetic biology, pharma, and medical devices;
Digital economy including digital agriculture
- Fostering Self-Reliance and Economic Security: Support technologies where indigenization is essential for strategic or economic reasons, in line with the vision of Atmanirbharta.
- Ensure Flexibility in Sectoral Support: Allow support for any additional sectors or technologies deemed essential for public interest.
Who Can Apply
Eligibility Criteria for Receiving RDIF Funds via SLFMs.
RDIF funds shall be provided by SLFMs exclusively, at the time of investment by the SLFM5 to Eligible Technology Entities, which:
- Are defined as any legal entity registered in India, and duly incorporated and governed under the applicable laws of India (including the Companies Act, 2013,
- The Indian Partnership Act, 1932.
- The Limited Liability Partnership Act, 2008,
- This to include startups as defined in the Department for Promotion of Industry and Internal Trade Notification G.S.R. 127(E) dated 19 February 2019, as may be modified from time to time); with principal place of business/operations in India; engaged in developing RDI-intensive technology at Technology Readiness Level 4 and above.
- Are under the control6 of resident Indian citizens7, as defined in the Department for Promotion of Industry and Internal Trade (DPIIT)’s Consolidated FDI Policy (2020);
- Have their registered global headquarters in India. This ensures that global revenues and profit would be consolidated under the Indian- registered entity
RDIF Priority Sectors:
The sectors listed below have been identified for funding under the scheme:
Sunrise Sectors
- Advanced Wind Energy Systems
- Hybrid Renewable Integrations
- Next-Generation Solar Cells
- Energy Storage
- Hydrogen Economy
- Carbon Capture, Utilization & Storage (CCUS)
- Modular Nuclear Reactors
- Advanced Clean Energy Systems
- Decentralized and Off-Grid Solutions
- Energy-Efficient Cooling
- Seaweed-Based Energy & Biochemical Alternatives
- Methane Capture & Bioconversion
- Critical Minerals & Rare Earth Recycling
- Ocean Farming & Marine Biotechnology
- Nuclear Fusion R&D
- Comprehensive Climate Action Initiatives
- Quantum Technologies
- Semiconductors & Electronics
- Advanced Manufacturing & Robotics
- Photonics & Optoelectronics
- Space Technologies
- Advanced Materials
- Intelligent Systems & Robotics
- Neuromorphic Computing & AI Hardware
- AI in Agriculture
- AI in Healthcare
- AI in Education
- Cross-Domain & Enabling AI Technologies
- Biotechnology & Life Sciences
- Biomanufacturing & Bioengineering
- Synthetic Biology & Industrial Biotech
- Pharmaceuticals & Drug Development
- Medical Devices & Diagnostics
- Advanced Biomaterials & Regenerative Medicine
- Advanced Therapeutics & Biologics
- Core Infrastructure for Digital Economy
- Digital Agriculture (AgriTech)
- Precision Agriculture & Soil Health
- Digital Financial Systems & Fintech
- e-Governance & Citizen Services
- Digital Health & Education Platforms
- Data Economy & Platforms
- Emerging Digital Economy
- Digital Public Infrastructure
In other sectors:
- Technologies whose indigenization is important for strategic reasons or for economic security and Atmanirbharta;
- Any other sector or technology deemed necessary in the public interest.
TECHNOLOGY REDINESS LEVEL
Make funds available to Eligible Technology Entities including startups scaling up R&D from TRL 4 onward.
MODE OF FUNDING AVAILABLE IN TDB
- Loans: Long-term financing for Startups/SMEs
- TDB assistance: Up to 50% of incurred expenditure
- Rate of Interest: 3% Interest Spread
- Maximum Loan Tenure: TRL 4 onwards (15 years) / TRL 6 onwards (12 years)
- Disbursed in tranches based on milestones
- Repayment within 7 years after moratorium
- Moratorium: 2 years after project completion
TDB generally prefers debt instruments. Equity investment may be considered subject to valuation benchmarks and limits.
TDB may convert up to 20% of debt into equity at a discounted valuation.
- Grants
- Short-term loans
Quantum of Financing
- The scheme shall provide financing up to 50% of the total assessed project cost. The remaining cost must be met by the project proponent through self-financing or commercial sources. In exceptional cases or strategic sectors, this limit may be relaxed with the approval of the EGoS.
