What is the RDIF Scheme?

The Research Development and Innovation Fund (RDIF) is a flagship initiative under the Department of Science and Technology (DST), Government of India. It is designed to accelerate investment in India’s R&D and Innovation ecosystem.

“Approved by the Union Cabinet on 1 July 2025, the RDI Scheme aims to catalyse private sector investment in R&D with a total outlay of ₹1 lakh crore over six years, including ₹20,000 crore in FY 2025–26.”

The scheme supports private sector enterprises, startups, and industries working in sunrise and strategic sectors to transform ideas into globally competitive technologies and products.

Role of TDB – Second Level Fund Manager (SLFM)

The Technology Development Board (TDB), under DST, acts as a Second Level Fund Manager (SLFM) under the RDIF scheme. In this role, TDB channels RDIF funds to Eligible Technology Entities (ETEs) through structured financial instruments such as soft loans and equity participation.

Objectives of the RDIF Scheme

The scheme is built around four core objectives:

1. Encouraging Private Sector Involvement

Incentivize active participation from industry players in cutting-edge research and innovation.

2. Promoting Strategic Technologies

Focus on mission-critical areas including:

• Energy security, transition, and climate action
• Deep technologies — quantum computing, robotics, and space
• Artificial Intelligence applications in agriculture, health, and education
• Biotechnology, biomanufacturing, synthetic biology, pharma, and medical devices
• Digital economy including digital agriculture

3. Fostering Self-Reliance (Atmanirbharta)

Support technologies where indigenization is essential for strategic or economic reasons.

4. Flexibility in Sectoral Support

Allow support for any additional sectors or technologies deemed essential for public interest.

Who Can Apply? – Eligibility Criteria

RDIF funds are provided by TDB (SLFM) to Eligible Technology Entities (ETEs) defined as any legal entity:

The headquarters requirement ensures that global revenues and profits are consolidated under the Indian-registered entity.

RDIF Priority Sectors

Sunrise Sectors (Clean Energy & Climate)

• Advanced Wind Energy Systems (offshore & vertical-axis turbines)
• Hybrid Renewable Integrations (solar-wind, solar-biomass)
• Next-Generation Solar Cells (higher power conversion, lower LCOE)
• Energy Storage (lithium-ion, sodium-ion, solid-state, flow batteries)
• Hydrogen Economy (green hydrogen, fuel cells, seawater electrolysis)
• Carbon Capture, Utilization & Storage (CCUS)
• Modular Nuclear Reactors (SMRs, thorium-based, fast breeder)
• Advanced Clean Energy Systems (fusion R&D)
• Energy-Efficient Cooling (high-efficiency ACs, localized supply chains)
• Critical Minerals & Rare Earth Recycling
• Ocean Farming & Marine Biotechnology
• Comprehensive Climate Action Initiatives

Deep Technologies

• Quantum Technologies (computing, communication, software, materials)
• Semiconductors & Electronics
• Advanced Manufacturing & Robotics
• Photonics & Optoelectronics
• Space Technologies
• Advanced Materials
• Neuromorphic Computing & AI Hardware

Artificial Intelligence

• AI in Agriculture
• AI in Healthcare
• AI in Education
• Cross-Domain & Enabling AI Technologies

Biotechnology & Life Sciences

• Biomanufacturing & Bioengineering
• Synthetic Biology & Industrial Biotech
• Pharmaceuticals & Drug Development
• Medical Devices & Diagnostics
• Advanced Biomaterials & Regenerative Medicine
• Advanced Therapeutics & Biologics

Digital Economy

• Core Digital Infrastructure
• Digital Agriculture (AgriTech) & Precision Farming
• Digital Financial Systems & Fintech
• e-Governance & Citizen Services
• Digital Health & Education Platforms
• Data Economy & Platforms
• Digital Public Infrastructure

Other Sectors

• Technologies whose indigenization is important for strategic or economic security (Atmanirbharta)
• Any sector or technology deemed necessary in the public interest

Technology Readiness Level (TRL)

The RDIF scheme makes funds available to Eligible Technology Entities — including startups — scaling up R&D from TRL 4 onward. This means the technology must have already been validated in a laboratory environment before seeking RDIF support.

Mode of Funding Available via TDB

1. Soft Loans

• Maximum funding: Up to 50% of total fund requirement
• Matching contribution required from the company or private investors
• Rate of Interest: 3% to 4% per annum
• Tenure: 12 to 15 years depending on the project
• Disbursement: In tranches based on projected fund use and milestones
• Repayment: Begins after completion of the moratorium period

2. Equity Participation

• Equity participation available up to 25% of assistance sought from TDB
• Equity investment must not exceed the capital paid-up by promoters
• TDB’s total shareholding must not exceed 25% of total shareholding of the company
• Remaining 75% to be disbursed as a loan

3. Loan with Equity Conversion Option

TDB provides soft loans without any immediate obligation for equity participation. TDB may convert up to 20% of the sanctioned debt into equity at a pre-agreed discounted valuation (typically 5% per annum from first disbursement, capped at 20%) when the ETE raises a follow-on round at a significantly higher valuation.

Exit options for TDB:

• Buyback by promoters
• Participating in a strategic/block sale in coordination with other investors (angels/VCs)

What the Scheme Does NOT Provide

It is important to note that the RDIF Scheme does not provide:

• Grants
• Short-term loans (these are expected to be met through commercial financing)

Quantum of Financing

The scheme provides financing of up to 50% of the total assessed project cost. The remaining cost must be met by the project proponent through self-financing or commercial sources. In exceptional cases or strategic sectors, this 50% limit may be relaxed with the approval of the Empowered Group of Secretaries (EGoS).

Key Highlights at a Glance

Why Apply Through Subsidy4India?

Navigating the RDIF application process requires deep understanding of TDB’s evaluation criteria, sector priorities, and documentation requirements. At Subsidy4India, we offer:

• Eligibility assessment for RDIF/TDB funding
• Detailed Project Report (DPR) preparation
• End-to-end application support and follow-up
• Milestone planning and compliance management
• Coordination with TDB officials and technical evaluators

Contact Subsidy4India today to explore your eligibility and begin your RDIF application journey.

Source: TDB Official Website – RDIF SLFM Scheme | Department of Science & Technology, Government of India