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
- Advanced Wind Energy Systems
- Offshore and vertical-axis turbine innovation
- Hybrid Renewable Integrations
- Combined solar-wind, solar-biomass, and other hybrid systems
- Next-Generation Solar Cells
- Cells with higher power conversion
- Field efficiency enhancements
- Innovations in solar supply chain resilience
- Reducing levelized cost of utility-scale PV
- Energy Storage
- Innovative battery chemistries (lithium-ion, sodium-ion, solid-state, etc.)
- Flow Batteries (Vanadium/ Next Generation)
- Secured supply chains for battery components (cathode, anode, electrolyte)
- High energy density, long cycle life
- Battery safety and thermal management
- Hydrogen Economy
- Green hydrogen via electrolysis, blue hydrogen with carbon capture
- Seawater Electrolysis
- Storage and use, including fuel cells and ammonia as carrier/fuel
- Hydrogen Conversion into energy (Fuel Cells, ICE)
- Hydrogen Compressors
- Carbon Capture, Utilization & Storage (CCUS)
- Low-cost CO₂ capture, mineralization, bioconversion, enhanced oil recovery
- Utilization for building materials, chemicals, fuels
- Modular Nuclear Reactors
- Small Modular Reactors (SMRs), thorium-based reactors, fast breeder technologies
- Advanced Clean Energy Systems
- Fusion R&D plasma containment, superconducting magnets
- Decentralized and Off-Grid Solutions
- Solar home systems, micro-hydro, biomass gasification for rural areas
- Innovations for last-mile energy access
- Energy-Efficient Cooling
- High efficiency air conditioners
- Affordable, localized supply chains to cut import dependency of components essential for energy efficient cooling systems
- Seaweed-Based Energy & Biochemical Alternatives
- Methane Capture & Bioconversion
- Critical Minerals & Rare Earth Recycling
- Critical Minerals and Metals Processing Solutions
- Recycling systems for critical minerals and metals
- Rare earth-free magnets: Innovate high-performance magnets without rare earth elements
- Advanced surface coating and additive manufacturing technologies for aerospace, defence, chemical, oil & gas, and biomedical sectors.
- Ocean Farming & Marine Biotechnology
- Nuclear Fusion R&D
- Comprehensive Climate Action Initiatives
- High-resolution climate modelling/simulation tools
- Low-carbon tech for hard-to-abate sectors (steel, cement, chemicals)
- Electrification and green alternatives for industrial heating
- Carbon footprint monitoring and life-cycle assessment
- Climate-resilient infrastructure (smart cities, sustainable drainage, heat-resilient materials)
- Net-zero/low-carbon materials (e.g., cement with ≥90% lower emissions, fiber-based composites, passive thermal management)
- Waste-to-energy, industrial symbiosis, rare earth/critical minerals/e-waste recycling, decarbonized desalination
- Quantum Technologies
- Quantum Computing: Scalable qubit architectures, quantum algorithms for Indian applications, cryptographic security and post-quantum cryptography, error correction and noise mitigation, quantum sensing and metrology
- Quantum Communication: Quantum Key Distribution (QKD) over fiber and free space, quantum repeaters, satellite-based quantum communication
- Quantum Software & Imaging: Quantum software, compilers, quantum imaging, noninvasive diagnostics
- Quantum Materials
- 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 Readiness Level
Make funds available to Eligible Technology Entities including startups scaling up R&D from TRL 4 onward.Assessment Link
Mode of Funding available in TDB
- Loans: Long-term financing.
- Maximum funding: 50% of fund requirement, matching contribution from company or private investors.
- Rate of Interest: @3% to 4% with 12-15years period depending on the project under RDIF.
- Disbursed in tranches based on the company’s projected use of funds and milestones achieved.
- Repayment of the loan, including interest, from the completion of the moratorium period.
Funding may also be available by way of equity participation upto 25% of assistance sought from TDB, 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.
In this mode, TDB will provide soft loans to eligible technology entities(ETE) without any immediate obligation for equity participation, thereby providing 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 ETE 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.
