GS2 – Schemes
Context
The Union Cabinet has approved the Research, Development, and Innovation (RDI) Scheme to enhance private sector investment in R&D, particularly in strategic and sunrise sectors.
What Are Sunrise Sectors?
Sunrise sectors refer to high-growth, emerging industries with strategic relevance, including:
- Clean mobility
- Green hydrogen
- Drones
- Robotics
- Space technology
Features of the RDI Scheme
Nature of the Scheme:
- A long-term financing or refinancing initiative aimed at strengthening private sector participation in research and innovation.
Objectives:
- Fund projects in advanced stages of development, nearing commercial deployment.
- Facilitate the acquisition of critical technologies to boost national security and economic growth.
- Establish a Deep-Tech Fund of Funds to support high-risk, high-potential innovations.
Implementation Framework
- Implementing Agency: Department of Science and Technology (DST)
- Governing Authority: Anusandhan National Research Foundation (ANRF), led by a Governing Board chaired by the Prime Minister.
- Oversight Mechanism: An Empowered Group of Secretaries (EGoS) headed by the Cabinet Secretary will periodically review performance and approve significant modifications.
Funding Structure
- Two-Tier Financial Structure:
- Tier 1: Creation of a Special Purpose Fund (SPF) within ANRF to manage the central fund corpus.
- Tier 2: Appointed fund managers will receive funds from SPF to support qualifying RDI projects.
- Modes of Support:
- Primarily through long-term concessional loans at low or zero interest.
Equity investments targeted at startups and deep-tech innovations.