The Technology Development Board (TDB) has closed its fresh RDI funding call as strong demand from deep-tech projects outpaces available capital, despite an additional ₹1,000 crore allocation taking its total to ₹3,000 crore. According to reports from Business Standard, TDB notified that its RDI call for proposals would close at 5 pm on Wednesday, September 30, "due to administrative reasons." However, multiple sources told The Indian Express that TDB, which is the only agency currently involved in selecting beneficiaries for the ₹1 lakh crore Research, Development and Innovation (RDI) Fund, is yet to receive the money needed to extend fresh offers to companies. The administrative pause reflects procedural delays in downstream fund releases from the DST's allocated budget.
A source at the Department of Science and Technology (DST), the nodal ministry for the fund, explained that the decision reflects a mismatch between strong demand for RDI funding and available capital. As reported by Business Standard, the source stated that while TDB is seeing a strong pipeline of deep-tech projects seeking funding, the capital received from the Anusandhan National Research Foundation (ANRF), the first-level fund manager for the RDI Fund, is not sufficient to fund the proposals coming through. According to The Indian Express, the TDB received ₹2,000 crore earlier this year under the Fund, which was exhausted during the first round of selection in April when 22 companies were offered soft loans worth a total of ₹2,192 crore. The Department of Science and Technology's 'Research and Development Statistics 2025-26' notes that India's Gross Expenditure on Research and Development (GERD) rose from 0.64% of GDP in 2020-21 to 0.84% in 2023-24.
According to Business Standard, TDB secretary Rajesh Kumar Pathak confirmed that they received an additional ₹1,000 crore on September 28, bringing the total sanctioned allocation to ₹3,000 crore. This follows the initial allocation of ₹2,000 crore each to TDB and the Biotechnology Industry Research Assistance Council (BIRAC). The DST has already been allocated ₹23,000 crore to fund the programme, including ₹3,000 crore in last year's Budget and ₹20,000 crore this year. As reported by The Indian Express, the TDB finalised the next round of selections in August and proceeded with shortlisting more applicants before pausing the process, with the Board not even able to issue letters of intent to companies selected in the second round.
As reported by Business Standard, while BIRAC is yet to commit capital to any startups, TDB has already utilised its sanctioned allocation to commit funding to 22 companies. The first cohort includes The ePlane Company (₹285 crore), Agnikul Cosmos (₹200 crore), ideaForge (₹151 crore), Tejas Networks (₹250 crore), Dhruva Space, Manastu Space and GalaxEye. The second cohort comprises 13 companies, of which 11 are deep-tech startups. According to The Indian Express, the Government created the RDI Fund in November 2025 for companies engaged in frontline research in critical sunrise sectors like quantum, space, robotics and artificial intelligence, including start-ups building their first products.
According to Business Standard, last year, Prime Minister Narendra Modi launched the ₹1 trillion RDI Fund to boost private sector-led research and innovation in India. Under the fund structure, money is transferred from the Consolidated Fund of India to a Special Purpose Fund (SPF) at a low interest rate for 50 years. The SPF, set up under ANRF, acts as the first-level custodian, with funds then flowing to second-level fund managers and subsequently to startups. As reported by The Indian Express, the Fund promised ₹1 lakh crore over a six-year period, largely as low-cost long-term loans, and was housed under the Anusandhan National Research Foundation (ANRF), an independent statutory body administratively under DST. The scheme moves away from traditional non-repayable academic grants, instead providing long-term patient capital through concessional loans and equity infusion to bridge the funding gap between laboratory discovery and industrial commercialisation.
