Centre Approves 19 Fund Managers Under ₹1 Lakh Crore RDI Scheme; IIT-Linked Research Bodies Included
New Delhi, October 13, 2026: The Centre has approved the first group of 19 Second-Level Fund Managers (SLFMs) under its ₹1 lakh crore Research, Development and Innovation (RDI) Scheme. The group comprises 14 Alternative Investment Funds (AIFs) and five Focused Research Organisations (FROs), with a combined commitment of ₹7,131 crore. According to a Press Information Bureau (PIB) release issued by the Ministry of Science and Technology on October 12, 2026, the Empowered Group of Secretaries approved the fund managers at its meeting on October 8. The selected organisations include research and innovation bodies associated with the Indian Institute of Science (IISc), IIT Madras, IIT Bombay and BITS Pilani.
The decision marks a step towards expanding access to long-term financing for technology development in India. The RDI Scheme aims to support eligible technology enterprises, startups and industry-led research projects working to develop and commercialise new technologies.
Which Research Organisations Have Been Approved Under the RDI Scheme?
The first cohort includes five Focused Research Organisations that are part of India's research, innovation and entrepreneurship ecosystem.
|
Research organisation |
Institutional association |
|
AI & Robotics Technology Park (ARTPARK) |
Indian Institute of Science (IISc), Bengaluru |
|
Centre for Cellular and Molecular Platforms (C-CAMP) |
Bengaluru |
|
IIT Madras Research Park |
IIT Madras |
|
Pilani Innovation & Entrepreneurship Development Society (PIEDS) |
BITS Pilani |
|
Society for Innovation & Entrepreneurship (SINE) |
IIT Bombay |
These organisations work across different areas of research, technology development and entrepreneurship. Their inclusion in the approved cohort does not mean that each associated institution has received a direct grant under the scheme. Instead, the fund managers form part of a funding structure intended to channel financial support to eligible technology ventures and research-driven projects. For students, researchers and startup founders, this distinction is important: the announcement concerns the approval of organisations involved in deploying funding, not an automatic allocation of money to every associated university.
What Is the ₹1 Lakh Crore RDI Scheme?
The Research, Development and Innovation Scheme is a Government of India initiative with a total outlay of ₹1 lakh crore over six years. The Union Cabinet approved the scheme on July 1, 2025, and Prime Minister Narendra Modi formally launched it on November 3, 2025. The Department of Science and Technology (DST) is the nodal department responsible for implementation.
The scheme seeks to increase private-sector investment in research and development, particularly in technology areas where development costs are high and commercial returns may take years to materialise. It also aims to strengthen the development of indigenous technologies and help promising innovations move towards commercial use.
Priority areas include:
- Artificial intelligence and its applications
- Robotics and quantum computing
- Space technology
- Biotechnology and biomanufacturing
- Pharmaceuticals and medical devices
- Energy security and climate action
- Digital economy technologies
- Other technologies relevant to India's strategic and economic security
By supporting technology development and commercialisation, the scheme is intended to help bridge the gap between promising research and technologies that are ready for wider application.
How Will the RDI Scheme Distribute Funding?
The RDI Scheme follows a two-tier funding structure. A Special Purpose Fund (SPF), established within the Anusandhan National Research Foundation (ANRF), holds the scheme's corpus and channels resources to approved Second-Level Fund Managers.
These fund managers then provide financial support to eligible technology enterprises and projects under the applicable rules. Depending on the project and financing conditions, support may be offered through long-term loans at low or nil interest rates, equity instruments or other permitted mechanisms. The scheme is intended to support research and development at Technology Readiness Level (TRL) 4 and above, covering technologies that have progressed beyond the earliest stages of development.
The structure addresses a common challenge for technology ventures: developing a promising innovation often requires substantial investment before the technology becomes commercially viable. Longer-term financing can help eligible businesses and projects move through testing, development, scaling and commercialisation. However, approval of a fund manager does not guarantee funding for every startup, university researcher or project. Applicants must satisfy the relevant eligibility conditions and the requirements established by the participating fund manager.
What Does the Approval Mean for Startups and Researchers?
The approval of 19 fund managers broadens the network of organisations through which the RDI Scheme can support technology development. The participation of research-focused bodies associated with leading academic institutions also creates a connection between the funding framework and India's wider research and entrepreneurship ecosystem. For startups working in areas such as artificial intelligence, robotics, biotechnology and space technology, the scheme may provide a route to seek eligible financing. Researchers and university-linked innovators looking to commercialise their work can also track the opportunities offered through participating organisations.
The first cohort's ₹7,131 crore commitment represents the combined commitment associated with the approved fund managers. It should not be interpreted as an equal allocation to all 19 organisations or as money already disbursed to individual startups. Interested applicants should monitor official scheme updates and announcements from relevant fund managers to understand the available financing options, eligibility requirements and application procedures.
What Happens Next Under the RDI Scheme?
The October 12 announcement marks a significant implementation milestone, but the scheme's impact will depend on how effectively funding reaches eligible projects and supports the development of usable technologies. Startups, researchers and institutions should watch for updates on:
- Eligibility requirements for participating fund managers
- Financing terms and permitted funding instruments
- Application windows and submission procedures
- Priority sectors and project requirements
- Funding decisions and subsequent implementation updates
Requirements may differ according to the fund manager and the type of project seeking support. For official information about the scheme and its implementation, visit the RDI Fund portal or read the government's announcement through the Press Information Bureau.
FAQs
1. What is the ₹1 lakh crore RDI Scheme?
The Research, Development and Innovation Scheme is a Government of India initiative with an outlay of ₹1 lakh crore over six years. It aims to encourage private-sector research, technology development and commercialisation.
2. How many fund managers have been approved under the RDI Scheme in October 2026?
The Centre announced the approval of 19 Second-Level Fund Managers on October 12, 2026. The first cohort includes 14 Alternative Investment Funds and five Focused Research Organisations.
3. Which IIT-linked organisations are included in the RDI Scheme?
The five approved research organisations include IIT Madras Research Park and SINE, associated with IIT Bombay. The cohort also includes ARTPARK at IISc Bengaluru, C-CAMP and PIEDS at BITS Pilani.
4. What is the total commitment for the first cohort of RDI fund managers?
The first cohort has a combined commitment of ₹7,131 crore, according to the Ministry of Science and Technology's PIB announcement.
5. Does the RDI Scheme provide direct grants to all IITs and universities?
No. The scheme uses a two-tier funding structure in which approved Second-Level Fund Managers channel support to eligible projects and enterprises. An organisation's inclusion in the cohort does not mean that every associated university or research project receives a direct grant.
6. Which sectors are covered under the RDI Scheme?
Priority areas include artificial intelligence, robotics, quantum computing, space technology, biotechnology, pharmaceuticals, medical devices, energy security, climate action and the digital economy, alongside other strategic technology areas.
7. Can startups apply for funding under the RDI Scheme?
Eligible startups and technology enterprises may seek support through participating fund managers, subject to the scheme's eligibility criteria, project requirements and applicable financing terms.
8. When was the RDI Scheme launched?
The Union Cabinet approved the scheme on July 1, 2025. Prime Minister Narendra Modi formally launched it on November 3, 2025.
Click Here for More Science & Technology