Latest news with #DevelopmentandInnovation
&w=3840&q=100)
Business Standard
16-07-2025
- Business
- Business Standard
RDI scheme should fund firms that can deepen R&D, have absorptive capacity
The RDI Scheme should fund firms with adequate absorptive capacity - but which firms and how will be key Naushad Forbes Mumbai Listen to This Article The Research, Development and Innovation (RDI) Scheme has been cleared by the Cabinet. The scheme allocates ₹1 trillion (or $12 billion) to funding R&D in Indian industry. Of this, ₹20,000 crore is in this year's budget. Initial comments on how the funds will flow suggest that much of it will be provided in the form of low- or zero-interest loans to a mix of funds of funds and directly to firms. My eyes glaze over in incomprehension when I hear the phrase 'fund of funds' — I just do not know how they will be held accountable for directly enhancing
Time of India
04-07-2025
- Business
- Time of India
Explained: What's behind India's ₹1 lakh crore bet on energy R&D — and who will benefit?
New Delhi: The Union Cabinet on July 1 approved the Research Development and Innovation (RDI) Scheme with a total outlay of ₹1 lakh crore. The scheme is aimed at providing long-term financing or refinancing to private companies at low or nil interest rates, primarily in strategic and sunrise sectors. The scheme is designed to address persistent funding constraints in India's research and development ecosystem and to encourage private sector-led innovation, especially in sectors critical to energy transition, decarbonisation, and domestic technology development. Officials said the scheme also seeks to provide growth and risk capital to help commercialise emerging technologies. How it will work The RDI Scheme will be operationalised through a two-tier funding structure. A Special Purpose Fund (SPF) will be set up within the Anusandhan National Research Foundation (ANRF). This corpus will be allocated to second-level fund managers, who will deploy the capital through concessional loans or equity-based support, particularly for startups The Governing Board of ANRF, chaired by the Prime Minister, will define the strategic direction. The Executive Council of ANRF will finalise guidelines, select fund managers, and approve projects. An Empowered Group of Secretaries headed by the Cabinet Secretary will oversee implementation. The Department of Science and Technology will be the nodal ministry. What makes the scheme significant Ashwin Jacob, Partner and Energy, Resources & Industrial Industry Leader, Deloitte India, said: 'The recent approval by Union Cabinet of the Rs 1 lakh crore Research, Development and Innovation (RDI) scheme is both timely and highly significant. The scheme comes at a critical juncture as India accelerates its energy transition aiming for ambitious targets such as 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070. The scheme is designed to address persistent funding gaps, especially for private sector led R&D in sunrise & strategic sectors by providing long term, low or nil interest loans.' According to Jacob, the RDI scheme is expected to catalyse private investment, promote deep technological innovation and enhance global competitiveness in energy technologies. Vineet Mittal, Chairman, Avaada Group, called the move 'a bold, timely, and visionary step'. He said: 'It sends a strong signal that India is serious about becoming not just a consumer but also a creator of cutting-edge energy solutions. For decades, underinvestment in R&D has held back Indian industry, particularly in sectors like clean energy and emerging fuels like green hydrogen. This initiative recognises that innovation is the foundation of energy security, self-reliance and global competitiveness.' Why funding has been a constraint India's total R&D expenditure is under 1 per cent of GDP. In the energy sector, public and private investment in R&D has remained limited due to lack of patient capital and long gestation timelines. Jacob noted that the ₹1 lakh crore allocation—equivalent to around $12 billion over five years—is a major step up from historical levels and, if deployed efficiently, could address key R&D gaps. Padam Prakash, Partner – Climate and Energy, PwC India, said: 'The scheme's focus on providing long-term, low or nil-interest financing to the private sector is a game-changer. Energy innovation often requires substantial upfront investment and long gestation periods, which private entities in India have historically hesitated to fund due to financial constraints and risk aversion.' How India compares globally Globally, countries like the US and China spend significantly more on energy R&D. According to Prakash, India's gross expenditure on R&D is approximately 0.65-0.7 per cent of GDP, whereas the US spends around 3.5 per cent and China 2.4 per cent. Within India's R&D spending, energy gets less than 10 per cent. Jacob said that while the proposed ₹1 lakh crore corpus is substantial, sustained and increasing investment will be needed to keep pace with rapid technological shifts globally. Vineet Mittal added: 'The ₹1 lakh crore allocation is an excellent start… but it should be seen as a floor, not a ceiling. Global clean energy R&D spending by governments and corporations exceeds $50–70 billion annually. India's ambition to lead the global energy transition will require sustained and growing investment in R&D.' Where the focus areas lie Jacob said that in renewable energy, R&D is required for technologies related to grid integration and smart grids, advanced battery chemistries, recycling of batteries, green hydrogen production and storage, high-efficiency solar PV, offshore wind, and bioenergy. In oil and gas, key areas include carbon capture and storage, renewable fuels for aviation, and digitalisation of upstream to downstream operations. Mittal said: 'In renewable energy, the following areas are critical: advanced solar technologies (perovskites, bifacial, topcon, tandem cells), cost-effective and scalable energy storage solutions, including solid-state batteries and flow batteries, green hydrogen production (improved electrolyser efficiency and lower capex), smart grids and demand-side management technologies.' 'In oil & gas, innovation is needed in: carbon capture, utilisation and storage, alternative fuels such as biofuels and e-fuels, digitalisation, AI-driven optimisation, and methane emissions reduction across the value chain.' Prakash said that R&D is needed in perovskite and tandem solar cells, sodium-ion and solid-state batteries, electrolyser efficiency, low wind-speed and offshore wind turbines, carbon capture, IGCC coal gasification, enhanced oil recovery, LNG infrastructure, and bio-based fuels. Challenges and expectations The experts agree that the RDI Scheme addresses a gap in India's innovation ecosystem but requires careful execution to be effective. Jacob noted that global benchmarking shows higher annual investments. Prakash said that while the scheme is 'a significant step', broader sectoral R&D needs may exceed the current allocation, especially given that the scheme is also expected to support sectors like AI and biotech. Mittal said: 'The real value of this scheme lies in its catalytic potential—to unlock more private capital, foster industry-academia collaboration, and build domestic capability in critical technologies.' The context: India's energy transition goals India has committed to installing 500 GW of non-fossil fuel capacity by 2030 and achieving net-zero emissions by 2070. This requires scaling up renewables, building green hydrogen ecosystems, improving grid resilience, and reducing reliance on imported technologies. Sudhir Pathak, Head- Central Design & Engg (CDE), Green Hydrogen Tech, Hero Future Energies, said: 'This couldn't have come at a more opportune time when India is pushing its net zero ambitions aggressively. History is testimony that all developed economies have deep-rooted orientation towards invention/innovation. The RDI scheme signals a bold commitment to building India's intellectual capital.' Pathak said the scheme will help transition from a manufacturing-oriented economy to one based on invention and innovation. 'It sets the stage for a renewed push toward high-impact research, innovation and all-round transformative technologies to bolster growth innovation across sectors including key driver—the energy sector.' He said the time is right to reimagine India's R&D ambition across battery tech, grid architecture, next-gen solar PV, end-to-end hydrogen technologies, and AI leadership, along with domestic manufacturing. Next steps The operational guidelines for the scheme, identification of fund managers, and sector-specific allocations are expected to be finalised in the coming months. The focus will be on creating a pipeline of investable R&D projects that can scale. The Deep-Tech Fund of Funds to be created under the scheme will also play a role in supporting technology ventures beyond the energy sector. As implementation begins, stakeholders are watching how effectively the ₹1 lakh crore corpus will be deployed, how sectors will be prioritised, and whether the intended innovation outcomes will be realised.
&w=3840&q=100)
Business Standard
02-07-2025
- Business
- Business Standard
RDI scheme a major boost for R&D and deep-tech in India: Industry
The approval of the Research, Development and Innovation (RDI) scheme by the Union Cabinet on Tuesday, with a corpus of Rs 1 trillion, is being seen as a major boost to research and development and deep-tech investment in India. Industry players and associations welcomed the announcement as a step in the right direction. India's R&D investment has long been a concern, with the country allocating only about 0.64 per cent of its GDP—significantly lower than the 2–5 per cent invested by countries such as the US, Japan and China. Many hope India will also attempt what China did in 2008 under its 'Thousand Talent Plan' to attract talent back to the country. The programme aimed to bring researchers and entrepreneurs home to contribute to the scientific and technological journey. 'The wish from industry is for the Fund to provide grants for research and fund the commercialisation of innovation. A scheme to attract global Indian talent and allow them to set up labs in India will be a critical factor for success. This will allow equity capital to follow and fuel the commercialisation of Indian innovation,' said Siddarth Pai, founding partner, 3One4 Capital. He added that India's innate talent requires infrastructure and policy support to thrive and move up the value chain. 'A single-window clearance for labs and import of equipment will be crucial to create this ecosystem,' he said. The scheme, announced in the July 2024 Budget, has excited the industry because of the two-tiered financing structure it proposes. Funds will flow through a 50-year, interest-free loan to the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister. The ANRF will then offer long-term concessional loans to second-level fund managers such as alternative investment funds, development finance institutions and non-banking financial companies. These, in turn, will finance individual projects. Anjali Bansal, founding partner of Avaana Capital, said this was a much-awaited move: 'Deep-tech ventures have longer gestation periods, complex technical risks, and often don't align with traditional venture capital timelines. India needs a broader spectrum of financing instruments—early catalytic capital, innovation-linked debt, and blended finance models that allow commercial investors to participate as the companies scale. The challenge lies in balancing long-term investments in deep tech with short-term economic gains. Patient capital, combined with strong technical and business teams focused on fundamental unit economics, can build a scaled business and deliver outsized returns over time.' Pai said a significant aspect of the special-purpose fund was that it enables the government to deploy capital through special purpose vehicles, AIFs and other instruments in collaboration with the private sector. 'This marks a strategic shift, recognising that industry has a better grasp of emerging technology needs,' he said. He added that the fund-of-funds model has worked well in developing the startup ecosystem in India. 'The same model lends itself to fuelling innovation with the government as a partner.' While the scheme's structure has been announced, the industry is now awaiting finer details—including the criteria for fund allocation and the timeline for disbursement. Ajai Chowdhry, founder of HCL and chairman of the EPIC Foundation, said the fund would also enable translational research by the private sector. 'Typically, under the ANRF, technical and research institutions will take innovation up to TRL-4 (technology readiness level). The private sector—both corporates and startups—can then take it to TRL-9 for India and the world,' he said. Industry players also raised concerns over the composition of the ANRF's governing board. Several told Business Standard that a board comprising only bureaucrats could derail the initiative. 'Ideally, people with global experience or those currently building products or services should be part of the board. This will be key. A board made up only of academics or bureaucrats will not help,' said a senior executive at a venture capital firm. According to the details released on Tuesday, the ANRF's governing board will provide overall strategic direction to the RDI scheme, while its executive council will recommend guidelines for the scheme and second-level fund managers, as well as define the scope and types of projects in sunrise sectors. Changes to the scheme, sectors or project types—as well as changes to second-level fund managers—will be approved by an empowered group of secretaries led by the Cabinet Secretary, the statement said.
Time of India
02-07-2025
- Business
- Time of India
Rs 1L cr R&D scheme to boost pvt sector innovation gets nod
New Delhi: The Union Cabinet on Tuesday cleared the Research, Development and Innovation (RDI) Scheme with a financial commitment of Rs 1 lakh crore. Designed to strengthen India's private research and innovation ecosystem, the scheme will provide long-term, low-cost financing to catalyse investment in emerging and strategic sectors. Briefing the media, Union minister Ashwini Vaishnaw described the scheme as a pivotal initiative to drive high-impact R&D, particularly in areas critical to India's economic resilience, strategic autonomy and global competitiveness. The scheme targets the funding shortfall faced by private enterprises working on cutting-edge technologies, offering support through low or zero interest loans and equity funding. The RDI Scheme's objectives include scaling up private sector research in emerging technologies, supporting high technology readiness level projects with transformative outcomes and facilitating access to strategically significant technologies. It also envisages the creation of a 'Deep-Tech Fund of Funds'. The initiative will be steered by the Anusandhan National Research Foundation, with its governing board chaired by the PM. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Switch to UnionBank Rewards Card UnionBank Credit Card Apply Now Undo The executive council will operationalise the scheme by finalising guidelines and selecting fund managers, while an empowered group of secretaries, headed by the cabinet secretary, will monitor performance and approve changes when needed. The science and technology department will serve as the nodal agency for implementation. Funding will be disbursed through a two-tier structure. A special purpose fund within the foundation will hold the corpus, which will then be deployed by selected fund managers to offer concessional financing or equity support, especially targeting start-ups and deep-tech enterprises.
Economic Times
01-07-2025
- Business
- Economic Times
Union Cabinet approves 'ELI scheme for Jobs, ₹1 Lakh Cr R&D boost, Sports Policy 2025
The Union Cabinet has cleared a massive ₹2.07 lakh crore push focused on employment, innovation, and sports. This includes a ₹1.07 lakh crore Employment Linked Incentive scheme and a ₹1 lakh crore Research, Development and Innovation (RDI) scheme for sunrise sectors. Also approved: the National Sports Policy 2025 and a ₹1,853 crore four-laning project for the Paramakudi–Ramanathapuram highway in Tamil Nadu. Here's the full breakdown, live. Show more 02:07 03:01 02:29 02:36 01:37 08:45 02:36 03:37 03:42 07:27 03:35 03:31 19:47 04:17 02:35 02:09 03:15 01:50 02:49 07:20 04:25 02:04 03:03 04:10 05:27 05:13 02:08 02:08 04:02 04:03 05:09 02:06 05:42 06:14 04:13
