Lok Sabha Question No. 1864 (UNSTARRED), answered on 2026-02-11
Subject: Operationalisation of Deep Tech Fund of Funds
Ministry: SCIENCE AND TECHNOLOGY
Asked by: Ms Kangna Ranaut, Shri Lumbaram Choudhary, Shri Mahendra Singh Solanky, Dr. Sanjay Jaiswal, Shri Alok Sharma, Shri Balabhadra Majhi

state:

- (a) whether the Government has operationalised or initiated steps towards the creation of a Deep-Tech Fund of Funds under the Research, Development and Innovation (RDI) scheme to strengthen financing for deep-tech  startups  in  the  country  particularly  in  Dewas-Shajapur, Madhya Pradesh;
- if so, the total corpus earmarked for the Fund of Funds and the
- (b) timeframe for utilisation;
- (c) the sectors and technology domains prioritised for investment through this fund; and
- the  mechanisms  put  in  place  for  engagement  of  alternate investment funds, development of finance institutions and other fund
- (d) managers for deployment of capital?

## ANSWER

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

- (a) The Union Cabinet approved the  Research, Development and Innovation  (RDI)  Scheme  on  01  July  2025  with  the  objective  of enhancing  private  sector  participation  in  research  and  development

## GOVERNMENT OF INDIA

## MINISTRY OF SCIENCE AND TECHNOLOGY

## DEPARTMENT OF SCIENCE AND TECHNOLOGY LOK SABHA

## UNSTARRED QUESTION NO. 1864 ANSWERED ON 11/02/2026

## OPERATIONALISATION OF DEEP TECH FUND OF FUNDS

†1864.  SHRI ALOK SHARMA:

SHRI BALABHADRA MAJHI:

MS KANGNA RANAUT:

SHRI MAHENDRA SINGH SOLANKY:

SHRI LUMBARAM CHOUDHARY:

DR SANJAY JAISWAL:

Will the Minister of SCIENCE AND TECHNOLOGY be pleased to

and strengthening financing support for high-risk, high-impact innovation,  including  deep-tech  startups.  The  Scheme  envisages  a corpus  of  ₹1  lakh  crore  over  a  period  of  six  years  and  includes provisions for supporting Deep-Tech Funds of Funds.

The RDI Scheme was launched on 03 November 2025 by the Hon'ble Prime  Minister.  Subsequently,  the  implementation  framework  was operationalised  through  preparation  and  approval  of  the  Scheme Implementation Guidelines, Special Financial Rules,  and issuance of Notices Inviting Applications.

Under the Scheme, Technology Development Board (TDB) and Biotechnology  Industry  Research  Assistance  Council  (BIRAC)  have been  approved  as Second  Level  Fund  Managers  (SLFMs)  on  a nomination basis, as per the Cabinet approval. Further, a call inviting applications  from  additional  SLFMs  was  issued,  which  closed  on  31 January 2026, and the selection process is currently underway. TDB has  also  launched  its  first  call  for  project  proposals  under  the  RDI Scheme on 04 February 2026.

The RDI Scheme, including the proposed Deep-Tech Fund of Funds, is not  city-  or  State-specific,  and  projects  are  supported  across  the country  based  on  a  demand-driven  and  outcome-oriented  approach. Proposals are evaluated on the basis of technological merit, strategic relevance, and potential economic impact.

- (b) The overall corpus of the RDI Scheme is ₹1 lakh crore for six years, with an allocation of ₹20,000 crore provided in the Union Budget for FY 2025-26 for its implementation. The corpus earmarked specifically for the Deep-Tech Fund of Funds is not pre-fixed and will be determined  based  on  demand,  quality  of  proposals,  and  outcomes achieved during the implementation period. The utilisation of funds will be  aligned  with  the  phased  roll-out  of  the  Scheme  over  the  six-year timeframe.
- (c) 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.

- (d) A transparent and competitive mechanism has been put in place for the engagement of Second Level Fund Managers (SLFMs), including Alternate Investment Funds (AIFs), Development Finance Institutions (DFIs) and other eligible fund managers, for deployment of capital under the Research, Development and Innovation (RDI) Scheme.

Accordingly, a Notice Inviting Applications (NIA) has been published in line  with  the  approvals  contained  in  the Cabinet  Note,  inviting applications  from  eligible  entities.  The  NIA  clearly  lays  down  the Quality  and  Cost  Based  Selection  (QCBS)  methodology,  along  with detailed eligibility conditions, evaluation parameters, weightages, and selection criteria to  ensure  transparency  and  objectivity in the selection process.

Applications received pursuant to the NIA are being evaluated as per the prescribed  QCBS  framework.  Based  on  the evaluation, the Executive Council (EC) will recommend  suitable SLFMs  to the Empowered  Group  of  Secretaries  (EGoS)  for  final  approval.  This structured  selection  mechanism  ensures  fairness,  transparency,  and alignment  with  the  objectives  of  the  RDI  Scheme  in  mobilising  and deploying capital for deep-tech and high-impact R&D initiatives.

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