TDB Pauses RDI Fund Initiative Due to Administrative Reasons

The Technology Development Board (TDB), the sole agency responsible for selecting beneficiaries for the Rs 1 lakh-crore Research, Development and Innovation (RDI) Fund, has temporarily halted its initiative due to administrative reasons. Following a round of funding, the TDB has not received the necessary funds to proceed, resulting in the closure of funding invitations for this month.

According to the TDB, the Department of Science and Technology (DST) is responsible for allocating the funds. The DST has already been allocated Rs 23,000 crore to support the programme. This includes Rs 3,000 crore from last year's budget and Rs 20,000 crore this year.

The TDB received Rs 2,000 crore earlier this year under the Fund. This was exhausted during the first round of selection in April when 22 companies were offered soft loans worth a total of Rs 2,192 crore. A recent report by The Indian Express highlighted concerns over conflict of interest and propriety among 15 of the 22 recipients.

Who had investment ties to seven members of the selection committee.

The RDI Fund was established in November 2025 to support companies engaged in frontline research in critical sunrise sectors such as quantum, space, robotics, and artificial intelligence. This includes start-ups building their first products.

Read More: Ujjain's Shahi Masjid Portion Removal: Police Crackdown on Social Media Creators

With the objective of raising money for technologies deemed vital for the growth and strategic independence of the country's economy.

The slow progress in the initiative is largely attributed to the delay in appointing more Second Level Fund Managers (SLFMs). The applications for SLFMs had closed in January, and a committee had finalized its recommendations in May. The Board has yet to issue letters of intent to companies selected in the second round, according to sources.

Over 300 companies have so far applied to receive funding from this programme. Approximately 100 have been appraised, and 35 have been selected — 22 in the first round, and 13 in the second. The Government created the RDI Fund to provide long-term soft loans to private sector research.

Up to 50 per cent of the project cost.

Industry experts express concern that the current pace will not enable the achievement of the target of Rs one lakh crore within the six-year timeframe. The RDI Fund is a vital intervention by the Government, providing critical funding for the growth of India's technology ecosystem.

Many companies require this funding to advance their technology development.

The Government has not commented on the delay in the RDI Fund initiative. However, officials have acknowledged the importance of the programme in supporting the country's technology sector.

Also Read: BJP Walks Out of Jammu and Kashmir Assembly Over Chief Minister Omar Abdullah's Resolution on Statehood

They emphasize the need for increased funding and support to drive growth in the technology sector.

January: Applications for Second Level Fund Managers (SLFMs) close.

May: A committee finalizes its recommendations for SLFMs.

April: The first round of selection for the RDI Fund is completed, with 22 companies offered soft loans worth Rs 2,192 crore.