Latest news with #ResearchDevelopmentandInnovation
The Hindu
9 hours ago
- Business
- The Hindu
Cabinet approves ₹1 lakh crore corpus for galvanising private investment in R&D
The Union Cabinet on Tuesday approved a ₹1-lakh crore Research Development and Innovation (RDI) scheme that aims to incentivise the private sector to invest in basic research that would translate into innovative products and technologies. Finance Minister Nirmala Sitharaman first announced the creation of such a fund in her interim Budget speech of 2024. A horizon for the fund has not been specified. However, the Ministry of Science and Technology, which is to be administratively in charge of the corpus, had an additional ₹20,000 crore allotment in its Budgetary allocation for the 2025-26 financial year, officials had told The Hindu earlier this year, was intended for the RDI scheme. The larger aim is to have India, like advanced technological countries, have private sector chip in more than government to fund basic research. The RDI Scheme will have a two-tiered funding mechanism, the Science Ministry said in a press statement. 'At the first level, there will be a Special Purpose Fund (SPF) established within the ANRF, which will act as the custodian of funds. From the SPF, funds shall be allocated to a variety of second level fund managers. This will be mainly in the form of long-term concessional loans. The funding to R&D projects by the second level fund managers would normally be in the form of long-term loan at low or nil interest rates. Financing in the form of equity may also be done, especially in case of start-ups. Contribution to Deep-Tech Fund of Funds (FoF) or any other FoF meant for RDI may also be considered,' the statement noted. Anusandhan National Research Foundation (ANRF) was conceived as an independent institutional body overseen by the science ministry to allocate funds for basic research and to incentivise private sector participation in core research. The scheme has been designed to overcome the constraints and challenges in funding of private sector and seeks to provide growth and risk capital to sunrise and strategic sectors to facilitate innovation, promote adoption of technology and enhance competitiveness, the statement added. Funds, however, would be provided only for products that had reached a certain level of development and market potential. 'TRL-4 [Technological Readiness Level -4] projects, which usually face the highest risk for want of financial support would be considered,' Minister for Information Technology Ashwini Vaishnaw said at a Union Cabinet press briefing. He did not explain how many levels of TRL existed. The broad domains where investments would be encouraged include: Energy security and transition, and climate action; deep tech, including quantum computing, robotics, and space; artificial intelligence and its application to India-specific challenges in agriculture, health, and education; biotechnology, biomanufacturing, synthetic biology, pharma, and medical devices; digital economy including digital agriculture; technologies required for strategic reasons, economic security, self-reliance (Atmanirbhar), or public interest, Mr. Vaishnaw noted.
India Gazette
10 hours ago
- Business
- India Gazette
Cabinet approves Research and Development and Innovation scheme with corpus of Rs 1 lakh crore to boost strategic, sunrise domains
New Delhi [India], July 1 (ANI): In a significant step to bolster India's research and innovation ecosystem, the Union Cabinet on Tuesday approved research development and innovation (RDI) scheme with a corpus of Rs one lakh crore to scale up research, development and innovation in strategic and sunrise domains. Briefing reporters on the cabinet decisions, Information and Broadcasting Minister Ashwani Vaishnaw said Research Development and Innovation (RDI) Scheme recognises the critical role that the private sector plays in driving innovation and commercialising research. The RDI Scheme aims to provide long-term financing or refinancing with long tenors at low or nil interest rates to spur private sector investment in RDI. The scheme has been designed to overcome the constraints and challenges in funding the private sector and seeks to provide growth and risk capital to sunrise and strategic sectors to facilitate innovation, promote technology adoption, and enhance competitiveness. Key objectives of the Scheme are to encourage the private sector to scale up research, development, and innovation (RDI) in sunrise domains and in other sectors relevant for economic security, strategic purpose, and self-reliance. The scheme will finance transformative projects at higher levels of Technology Readiness Levels (TRL). In addition, the project support acquisition of technologies which are critical or of high strategic importance, and facilitate setting up of a Deep-Tech Fund of Funds. An official release said that the Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overarching strategic direction to the RDI Scheme. The Executive Council (EC) of ANRF will approve the Scheme's guidelines, and recommend 2nd level fund managers and scope and type of projects in sunrise sectors. An Empowered Group of Secretaries (EGoS) led by the Cabinet Secretary, will be responsible for approving scheme changes, sectors and types of projects as well as second-level fund managers besides reviewing the performance of the Scheme. The Department of Science and Technology (DST) will serve as the nodal department for implementation of RDI Scheme. The RDI Scheme will have a two-tiered funding mechanism. At the first level, there will be a Special Purpose Fund (SPF) established within the ANRF, which will act as the custodian of funds. From the SPF funds shall be allocated to a variety of second level fund managers. This will be mainly in the form of long-term concessional loans, the release said. The funding to R&D projects by the second level fund managers would normally be in the form of long-term loan at low or nil interest rates. Financing in the form of equity may also be done, especially in case of startups. Contribution to Deep-Tech Fund of Funds (FoF) or any other FoF meant for RDI may also be considered. By addressing the critical need of private sector for long-term, affordable financing, the RDI Scheme fosters self-reliance and global competitiveness, thereby facilitating a conducive innovation ecosystem for the country as it marches towards Viksit Bharat at 2047, the release said. (ANI)
Hindustan Times
11 hours ago
- Business
- Hindustan Times
Union cabinet clears ₹1 lakh crore to boost R&D in sunrise sectors
The Union cabinet on Tuesday approved ₹ 1 lakh crore aimed to boost research, development, and innovation in sunrise and strategic sectors, with a focus on scaling private sector efforts and acquiring critical technologies. Union minister Ashwini Vaishnaw briefs the media on the Union cabinet's decisions in New Delhi on Tuesday. (PTI) The Research Development and Innovation (RDI) scheme was unveiled by Union minister Ashwini Vaishnaw during a press conference in New Delhi. Highlighting its industry-driven approach, he noted that the scheme was crafted through extensive consultations with experts and is aimed at supporting projects that have advanced beyond early-stage research to the prototype development phase. 'When a company moves beyond the prototype stage, it often faces the 'valley of death', a critical phase where many innovations fail due to lack of support,' Vaishnaw said. 'This is exactly when timely assistance is needed to turn a promising prototype into a viable product.' The scheme targets sunrise sectors such as clean energy, climate tech, deep tech (quantum, robotics, space), AI in key areas, biotech, digital agriculture, and also interestingly technologies required for strategic reasons, economic security, self-reliance or public interest. 'Countries that invest heavily in R&D see long-term gains in productivity and technological advancement across industries,' Vaishnaw said. The 2024-25 Economic Survey noted that even though India has increased the gross expenditure on research and development (GERD) from approximately ₹ 60,196 crore in 2011 to about ₹ 127,381 crore in 2021, it still is a mere 0.64% of the GDP. The survey noted that this remains 'insufficient and remains low compared to many countries that have forged ahead in R&D'. The way the funding for the scheme works is that the government will channel ₹ 1 lakh crore to the Anusandhan National Research Foundation (ANRF) as a 50-year interest-free loan. ANRF, a government body set up to boost research and innovation, will create a special fund that offers concessional finance to second-level fund managers, who will then evaluate and select individual projects for funding, through both equity and debt. The RDI scheme will be guided by the ANRF governing board, chaired by the prime minister. Its executive council will set guidelines and recommend fund managers and project types. A group of secretaries, led by the cabinet secretary, will approve changes and review progress. The secretary of the relevant sector will be included in the group. For instance, if a project involves AI, the secretary of the IT ministry will be part of the decision-making body. The department of science and technology will be the nodal agency for implementation. Other key decisions taken by the Union cabinet on Tuesday included a nationwide sports strategy 'Khelo Bharat Niti 2025', a key ₹ 1,853-crore road project in Tamil Nadu and ₹ 99,446-crore Employment Linked Incentive (ELI) scheme.
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Business Standard
11 hours ago
- Business
- Business Standard
Union Cabinet clears ₹1 trillion RDI scheme to fund innovation in tech
The Union Cabinet on Tuesday approved the Research Development and Innovation (RDI) Scheme announced in the July Budget last year, with a corpus of Rs 1 trillion to provide risk capital to strategic and sunrise sectors, Information and Broadcasting Minister Ashwini Vaishnaw said. The scope of the scheme would range from energy security and transition to quantum computing, robotics, biotechnology and artificial intelligence, the government has said. The scheme aims to provide long-term financing or refinancing with long tenors at low or nil interest rates to spur private sector investment in RDI through a two-tiered structure. The flow of funds would take place through grant of 50-year interest-free loans to the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister. ANRF would then give long-term concessional loans to second-level fund managers such as Alternative Investment Funds, Development Finance Institutions and Non-Banking Financial Companies. These second-level fund managers would then finance individual projects. The scheme would also facilitate setting up of a Deep-Tech Fund of Funds, finance transformative projects at higher levels of technology, and support acquisition of critical technologies of high strategic importance. 'There is an urgent need for funding innovation. It is definitely needed. Globally, governments in countries like the US have financed the National Science Fund,' said economist N R Bhanumurthy. The Department of Science and Technology (DST) will serve as the nodal department for implementation of the scheme. The Governing Board of ANRF will provide overarching strategic direction to the RDI Scheme and its Executive Council would recommend the guidelines for the scheme and second-level fund managers along with the scope and type of projects in sunrise sectors. 'By addressing the critical need of private sector for long-term, affordable financing, the RDI Scheme fosters self-reliance and global competitiveness, thereby facilitating a conducive innovation ecosystem for the country as it marches towards Viksit Bharat at 2047,' a press statement by the government said. Changes to the scheme, sectors or the type of projects, as well as second-level fund managers, would be approved by an Empowered Group of Secretaries led by the Cabinet Secretary, the statement said. The focus of the scheme would include the digital economy, including digital agriculture, technologies required for strategic reasons, economic security, self-reliance and public interest. The scheme would support artificial intelligence and its application to India-specific challenges in agriculture, health and education. The press statement by the government said, 'The scheme has been designed to overcome the constraints and challenges in funding of the private sector and seeks to provide growth and risk capital to sunrise and strategic sectors to facilitate innovation, promote adoption of technology and enhance competitiveness.'
United News of India
13 hours ago
- Business
- United News of India
Union Cabinet nod to Rs 1 lakh crore RDI scheme to boost innovation ecosystem
New Delhi, July 1 (UNI) With an aim to accelerate India's research and innovation capabilities, the Union Cabinet, chaired by Prime Minister Narendra Modi, today approved the Research Development and Innovation (RDI) Scheme with a funding corpus of Rs 1 lakh crore. Addressing the media here post-Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw, emphasised the scheme's role in fostering long-term financing at low or no interest rates, thereby stimulating private sector investment in research and development (R&D). The focus, he noted, is on overcoming the constraints currently faced by the private sector in driving technological advancements, especially in sunrise sectors and strategic areas such as deep-tech and emerging technologies, as well as critical sectors vital for India's economic security and self-reliance. 'The overarching objective is to scale up R&D and innovation, especially in sectors that hold transformative potential for the nation's technological sovereignty and global competitiveness,' said a government statement here. The Cabinet also approved the establishment of a deep-tech Fund of Funds (FoF) which will focus on supporting high-risk, high-reward innovations in deep-tech sectors such as artificial intelligence, quantum computing, and biotechnology. The scheme envisions financing projects at higher Technology Readiness Levels (TRL), enabling the commercialization of research in these critical areas. The RDI scheme will operate through a two-tiered funding structure. The first level involves the creation of a Special Purpose Fund (SPF) within the Anusandhan National Research Foundation (ANRF), which will serve as the custodian of the funds. From here, capital will be allocated to second-level fund managers who will oversee investments in various R&D projects, the statement added. The funding will primarily take the form of long-term concessional loans, although equity financing may be extended, particularly to startups with promising technologies. The DST (Department of Science and Technology) will act as the nodal department for the scheme's implementation, with the Governing Board of ANRF providing strategic guidance. Also, an Empowered Group of Secretaries (EGoS) will oversee the approval of projects, funds, and sectoral allocations, ensuring that the scheme is aligned with India's long-term strategic and technological goals, said the statement. UNI AJ AAB PRS
