Lok Sabha Question No. 706 (UNSTARRED), answered on 2026-02-04
Subject: Corpus Fund for funding R&D in Private Sector
Ministry: SCIENCE AND TECHNOLOGY
Asked by: Shri T R Baalu

## GOVERNMENT OF INDIA

## MINISTRY OF SCIENCE AND TECHNOLOGY

## DEPARTMENT OF SCIENCE AND TECHNOLOGY LOK SABHA

## UNSTARRED QUESTION NO. 706 ANSWERED ON 04/02/2026

## CORPUS FUND FOR FUNDING R&D IN PRIVATE SECTOR

## 706.  SHRI T R BAALU:

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

- the details of the huge corpus fund to be established for funding Research  and  Development  in  private  sector  specially  the  time horizon  of  the  Scheme,  current  year  budget  allocation,  sunrise sectors  identified  for  acquisition  and  development  of  indigenous
- (a) Technologist;
- (b) the industry wise targets set for R&D promotion industry wise and the time for realization of targets; and
- (c) the  details  of  economic  and  financial  gains  likely  to  accrue nation expected from providing of financial support to private sector?

## ANSWER

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

- (a) The Union Cabinet has approved the Research, Development and Innovation (RDI) Scheme on 01 July 2025 to promote enhanced participation of the private sector in research and development. The Scheme envisages a corpus of  ₹1  lakh  crore  over  a  period  of  six years. Financial support under the Scheme will be provided primarily through long-tenor, low interest financing which is expected to be unsecured.  Equity  financing  will  also  be  considered  specially  for startups.  The  scheme  will  also  contribute  to  Deep  Tech  Funds  of Fund. The scheme will facilitate long-term investments in high-risk and high-impact R&D.

An allocation of ₹20,000 crore has been made in the Union Budget for FY 2025-26 for implementation of the Scheme.

The Scheme will follow a two-tiered funding mechanism, wherein the second level of implementation will be undertaken through appropriate  Second  Level  Fund  Managers  (SLFMs),  which  may include  Alternate  Investment  Funds  (AIFs),  Development  Finance Institutions (DFIs), Non-Banking Financial Companies (NBFCs), and Focused  Research  Organisations  (FROs)  such  as  the  Technology Development Board (TDB), Biotechnology Industry Research Assistance Council (BIRAC), IIT Research Parks, and other similar institutions, in accordance with approved guidelines.

The sunrise sectors identified under the RDI Scheme include energy security and energy transition including climate action; deep technologies  such  as  quantum  computing,  robotics  and  space technologies; artificial intelligence and its applications in agriculture, health and education; biotechnology, biomanufacturing, synthetic  biology,  pharmaceuticals  and  medical  devices;  and  the digital economy including digital agriculture. The Scheme will also support technologies critical for strategic requirements, economic security and Atmanirbharta, as well as any other sector or technology considered necessary in public interest.

- (b) The RDI Scheme adopts a demand-driven and outcome-oriented approach,  wherein  projects will be supported  based  on  their technological  merit,  strategic  relevance,  and  potential  economic impact.  The  time  frame  for  realization  of  outcomes  will  vary depending on the sector, technology maturity, and level of innovation, with a focus on projects at Technology Readiness Level (TRL) 4 and above. Progress and outcomes will be monitored through appropriate institutional mechanisms during the Scheme period.
- (c) By  enabling  greater  private  sector  investment  in  R&D,  the Scheme aims to enhance domestic technological capabilities, reduce import dependence, strengthen supply chain resilience, and improve global competitiveness of Indian industry.

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