RDI funding for industry-backed projects to begin by Jan-end: Minister

BIRAC, TDB named second-level fund managers

The government will start deployment under the Research Development Innovation (RDI) fund for industry-backed projects by the end of this month. The funding process will kickstart the execution stage of the scheme after it was launched in November last year, Union Minister of State (Independent Charge) for Science and Technology Jitendra Singh said on Monday.

 

In a review meeting, the minister also said that the Department of Science and Technology (DST) has approved the Technology Development Board (TDB) and the Biotechnology Industry Research Assistance Council (BIRAC) as second-level fund managers. Business Standard was the first to report that two focused research organisations, TDB and BIRAC, have been selected under the scheme to catalyse private sector-led research and innovation.

 

“As a follow-up to the announcement made by Prime Minister Narendra Modi on November 3, 2025, the RDI funding for industry-backed projects will start by the end of this month, with the funding framework having entered the execution phase, and two public sector institutions poised to start funding industry-backed projects,” the ministry said in a statement.

 

While TDB will focus on projects spanning all sunrise and strategic sectors, BIRAC will oversee initiatives in biotechnology and allied domains. Both organisations, which were invited on a nomination basis, are expected to issue their first calls for proposals this month. They will also receive Rs 2,000 crore each from the Special Purpose Fund under the Anusandhan National Research Foundation.

 

“Both organisations will receive Rs 2,000 crore each in the first quarter, taking the initial allocation under the scheme to Rs 4,000 crore, and are expected to issue calls for project proposals from startups, companies and industry before the end of January,” the ministry statement added.

 

For other second-level fund managers, including alternate investment fund (AIF) structures, development finance institutions (DFIs) and non-banking finance companies (NBFCs), the last date to send applications is January 31, 2026.

 

The minister noted that strengthening private sector participation in research and development remains a key objective of the RDI framework. He added that the scheme is intended to support translational research and facilitate stronger linkages between public research institutions, startups and industry, enabling scientific outputs to move more effectively towards commercial and societal application.