The government is in the process of appointing second-level fund managers as part of the ₹1 lakh crore Research, Development and Innovation (RDI) fund, according to Jitendra Singh, Union Minister of State (Independent Charge) for Science and Technology. As reported by Business Standard, the minister explained that "the second-level fund managers are also in the process of being appointed. Since this was the first experience of its kind for both us and others, it has taken time as we were learning and being very cautious about factors like accountability, confidentiality, conflict of interest, etc." The government has nominated two second-level fund managers so far, including the Technology Development Board (TDB) and the Biotechnology Industry Research Assistance Council (BIRAC). The application process for venture capital funds and other organizations to become fund managers closed on January 31 this year, though the new fund managers have yet to be announced.
The Technology Development Board (TDB) has committed ₹2,192 crore to 22 companies under the Research and Development Investment (RDI) fund, surpassing the allocated ₹2,000 crore. According to reports from Business Standard, the fund allocation includes 14 startups, 5 MSMEs, and 3 listed companies. The disbursement process is expected to take 2-3 years based on individual project durations, with companies required to match 50% of funding from non-government sources. As per TDB Secretary Rajesh Kumar Pathak, the organization has so far disbursed around ₹102 crore of the committed amount. The minister confirmed that "you will soon see that once we get going with one or two lots, it will become a very regular feature."
The TDB has selected 13 companies for its second cohort under the RDI fund, with 11 being deep-tech startups. As reported by Business Standard, the second cohort is currently in process and will be announced once additional funding becomes available. The minister emphasized that "the second edition of the conclave, which will be held from October 27-29 at Bharat Mandapam, will be inaugurated by Prime Minister Narendra Modi." The PM had announced the launch of the RDI fund at ESTIC's first edition last year, with the upcoming event featuring 12 thematic areas including advanced manufacturing, energy technologies, semiconductor and next-generation chips, and generative and autonomous artificial intelligence.
Since its inception, the TDB has committed over ₹3,260 crore for commercializing indigenous technologies across approximately 450 funding agreements. According to Business Standard, the organization has received ₹1,200 crore in government support, with ₹1,000 crore forming the capital base for technology financing. The TDB operates on a revolving-fund model where repayments from earlier investments are recycled into new technology projects, effectively multiplying the original capital commitment. Against the TDB's cumulative commitment of over ₹3,260 crore, the supported projects represent an overall investment of more than ₹13,000 crore, demonstrating how the organization's capital has helped catalyze several times its own financial commitment in technology-led economic activities.
The TDB's primary focus remains on deep-tech companies at TRL 6-7 (Technology Readiness Level) that are ready for commercialization. As reported by Business Standard, the organization's portfolio composition has evolved significantly over three decades, with startups now constituting 50-60% of new commitments alongside MSMEs and other technology-driven enterprises. The TDB's funding approach includes loans for technology commercialization projects, with companies at TRL 6-7 where proof of concept and testing are completed looking for commercialization support. The minister noted that the event will feature around 150 deep-tech startups with total attendance expected to be nearly 3,000.
The TDB has implemented safeguards against foreign takeovers, requiring companies to obtain government permission if they dilute above 20% threshold and register intellectual property in India. According to Business Standard, the organization is expanding focus areas to include nuclear energy alongside existing sectors like space technology. The minister confirmed that "the government had invited applications from venture capital funds and other organisations to become fund managers, for which the application process closed on January 31 this year." At the investment committee level, the organization maintains strict conflict of interest measures, requiring super majority configurations of 9-0, 8-1, or minimum 7-2 for decisions, ensuring no single member can influence decisions.
