Lok Sabha Question No. 159 (STARRED), answered on 2025-07-30
Subject: Scheme to Incentivise  R&D in Private Sector
Ministry: SCIENCE AND TECHNOLOGY
Asked by: Shri Eatala Rajender, Smt. D K Aruna

## GOVERNMENT OF INDIA

## MINISTRY OF SCIENCE AND TECHNOLOGY

## DEPARTMENT OF SCIENCE AND TECHNOLOGY LOK SABHA

## STARRED QUESTION No. *159 ANSWERED ON 30/07/2025

## SCHEME TO INCENTIVISE R&D IN PRIVATE SECTOR

*159.  SMT. D K ARUNA:

SHRI EATALA RAJENDER:

Will the Minister of SCIENCE AND TECHNOLOGY be pleased to state:

- (a) whether the Government is working out or already implementing  any  scheme  to  incentivise private sector under Research and Development (R&D) and if so, the details thereof;
- whether views of experts, if any, were taken into consideration and task forces/committees/commissions appointed/reports received
- (b) in this regard and any action has been taken thereon;
- (c) if  so,  the  details  thereof  and  the  steps  initiated  and  results achieved; and
- (d) the details of funds sanctioned, spent therefor and the present status thereof, State-wise particularly for Telangana and Tamil Nadu?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF SCIENCE AND TECHNOLOGY AND EARTH SCIENCES (DR. JITENDRA SINGH)

( स्ितंत्र प्रभार) ( )

विज्ञान और प्रौद्योगिकी तथा पृ थ्िी विज्ञान मंत्रालय क े राज्य मंत्री डॉ. जितेंद्र स ंह

(a) to (d):    A statement is laid on the Table of the House.

STATEMENT AS REFERRED IN REPLY TO PARTS (a) to (d) OF LOK SABHA STARRED QUESTION NO. 159 FOR 30.07.2025 REGARDING 'SCHEME TO INCENTIVISE R&D IN PRIVATE SECTOR'

(a)  to  (d):         Yes,  on  July  1,  the  Union  Cabinet  approved  the Research, Development, and Innovation (RDI) Scheme to incentivize private sector participation in research and development (R&D).

The Government of India is already actively implementing a range of Flagship initiatives such as the Atal Innovation Mission, the National Supercomputing Mission, and the India Semiconductor Mission laid the early groundwork for a robust innovation ecosystem for manufacturing and advanced technology development. Building on this foundation, newer programs like the National Quantum Mission, the India AI Mission, and the National Green Hydrogen Mission reflect the government's strategic intent to lead in next-generation technologies.

A new RDI scheme has a total outlay of ₹1 lakh crore over 6 years. Technology  sectors  of  strategic  importance  have  been  identified under the RDI Scheme. These include energy security, climate action, and deep  technologies such  as quantum  computing,  artificial intelligence,  biotechnology,  and  the  digital  economy.  The  scheme also covers sectors critical for strategic and economic security, with the flexibility to include additional sectors based on approval from the Empowered Group of Secretaries (EGoS). The nature of financing under this scheme includes long-term loans (at low or no interest), equity financing, and contributions to the Deep-Tech Fund of Funds. Grant  financing  and  short-term  loans  are  not  envisaged  under  the scheme.

A  Special  Purpose  Fund  (SPF)  under  the  Anusandhan  National Research  Foundation  (ANRF)  will serve as the Level 1  Fund Custodian. Implementation will be carried out by Second-Level Fund Managers  (SLFMs),  including  Alternate  Investment  Funds  (AIFs), Development  Finance  Institutions  (DFIs),  Non-Banking  Financial Companies  (NBFCs),  and  Focused  Research  Organizations  (FROs), such as BIRAC, TDB, and IIT Research Parks, with approval from the Empowered Group of Secretaries (EGoS).

The scheme is intended to finance RDI projects with transformative potential at TRLs 4 and above, avoid overlap with the ANRF, and allow for the acquisition of strategically important technologies. However, the financing excludes next-generation R&D labs, RDI financing for government entities, and short-term loans. Financing will be limited to  a  maximum  of  50%  of  the  project's  assessed  cost,  with  the remaining funds arranged by the project proponent. In exceptional types of projects/sectors, the financial limit for government share in financing can be relaxed with the approval of the EGoS.

The Department of Science & Technology (DST) is the nodal agency for  the  scheme.  Oversight  and  governance  are  provided  by  the Governing Board of ANRF, while the EGoS, Executive Council (EC), and Investment Committees (ICs) are responsible for sector approvals,  fund  manager  selection,  project  evaluation,  and  overall performance review.

The  Department  of  Science  and  Technology  (DST)  held  extensive consultations with over 10,000 stakeholders, including experts from academia, industry, start-ups, and the research community during the Post-Budget Webinar. Subsequently, several follow-up meetings were conducted with industry personnel, financial institutions, and subject-matter experts to deepen the deliberations and incorporate sector-specific inputs. These consultations were aimed at gathering diverse perspectives to inform the formulation and implementation process. A report has also been prepared based on the recommendations received during the Post-Budget Webinar. Furthermore,  inter-ministerial  coordination  and  discussions  were undertaken in consultation with the Department of Economic Affairs (DEA).

The relevant guidelines are currently under formulation and will be finalized  in  consultation  with  the  Department  of  Economic  Affairs (DEA) and the Department of Expenditure (DoE).

A total amount of ₹20,000 crore has been allocated for the Financial

Year 2025-26.

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