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 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 control of resident Indian citizens, 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
- Energy security and transition, and climate action;
- “Deep Technology” including quantum computing, robotics and space;
- Artificial Intelligence and its application to Indian problems, including in agriculture, health, and education;
- Biotechnology, biomanufacturing, synthetic biology, pharma, medical devices;
- Digital economy, including digital agriculture.
Other Sectors
- Technologies whose indigenization is important for strategic reasons or for economic security
- Any other sector or technology deemed necessary in public interest.
1. Energy security and transition, and climate action
- 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, Metals and Rare Earth Processing & Recycling
- Ocean Farming & Marine Biotechnology
- Nuclear Fusion R&D
- Comprehensive Climate Action Initiatives
2.“Deep Technology” including quantum computing, robotics and space
- Quantum Technologies
- Semiconductors & Electronics
- Advanced Manufacturing & Robotics
- Photonics & Optoelectronics
- Space Technologies
- Advanced Materials
- Intelligent Systems & Robotics
- Neuromorphic Computing & AI Hardware
3. Artificial Intelligence and its applications to Indian problems including in agriculture, health, and education
- AI in Agriculture
- AI in Healthcare
- AI in Education
- Cross-Domain & Enabling AI Technologies
4. Biotechnology, biomanufacturing, synthetic biology, pharma, medical Devices
- Biotechnology & Life Sciences
- Biomanufacturing & Bioengineering
- Synthetic Biology & Industrial Biotech
- Pharmaceuticals & Drug Development
- Medical Devices & Diagnostics
- Advanced Biomaterials & Regenerative Medicine
- Advanced Therapeutics and Biologics
5. Digital economy including Digital agriculture
- Core Infrastructure for Digital Economy
- Digital Agriculture (AgriTech)
- Precision Agriculture & Soil Health
- Digital Financial Systems & Fintech
- e-Governance and Citizen Services
- Digital Health and Education Platforms
- Data Economy and 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 AVAIALBLE IN TDB
LOAN: Long tenor collateral free
- Loans: Long-term financing for Startups/SMEs
- TDB assistance: Up to 50 % of incurred expenditure (including contribution from RDIF scheme of other AIFs etc.). The beneficiary company is to arrange the remaining 50 % from their own or external sources.
- Rate of Interest: 3% Interest Spread
- Maximum Loan Tenure: TRL 4 onwards (15 years) / TRL 6 onwards (12 Years)
- Disbursed in tranches based on the company’s projected use of funds and milestones achieved.
- Repayment of the loan, including interest, is to be made within 7 years from the completion of the moratorium period.
- Moratorium: 2 years from the date of completion of the project.
Equity:
TDB will use debt as its generally preferred instrument for funding companies / startups. TDB will try not to operate on upfront equity based on early valuations. However, if required, TDB will explore investment in deserving companies by benchmarking the equity price/valuation to a recent round of similar/ larger investment size raised by the company through angels/ VCs etc. The Board may invest in equity shares of a company up to 25 per cent of the unincurred project cost, including margin money for working capital, provided such investment does not exceed the capital paid-up by the promoters. Rest 75% to be disbursed as loan. The total equity shares held by TDB should not be more than 25% of total shareholding of the company. Other features will be the same as the Loan.
Laon + Equity (Debt to equity conversion)
In this mode, TDB will provide soft loans without any immediate obligation for equity participation or repayment, thereby providing start-ups with opportunities to validate their technologies and leverage their innovation. TDB will convert up to 20% of the sanctioned debt into equity at a pre-agreed discounted valuation (typically 5% per annum from the first disbursement, capped at 20%) when the startup raises a follow-on round at a significantly higher valuation. The exit option for TDB will be (i) in the form of buy back by the promoters or (ii) participating in a strategic / block sale in coordination with other investors (angels/VCs etc.). Other features will be the same as the loan.
The scheme does not provide:
- Grants;
- Short-term loans, as these are expected to be met through commercial financing.
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.
