3 weeks ago
Government says checks in place after RDI Fund conflict report
The Government of India made a special fund to help companies that do science and research.
The fund is called the RDI Fund.
A newspaper called The Indian Express found that many of the first companies that got money were connected to the people who chose the companies.
Some leaders worried this was not fair, because public money is involved.
The government said strong rules are already in place to keep the process fair.
Members who choose companies must tell everyone if they are connected to any company, and they cannot vote for those companies.
In the next group of companies, only one of 13 is connected to a person who helps choose them.
The government says it does not plan to change the rules right now.
But it says the people in charge can make changes if they think they are needed.
An Indian Express investigation found over 62 per cent of Rs 2,192-crore soft loans in the RDI Fund's first round went to companies tied to selection panel members.
Of the 22 companies selected in the first cohort, 15 were ones in which selection committee members had declared and recused interests.
The government said the second cohort has 13 recommended companies, with only one linked to a selection committee member; final approval is due August 11.
The government said there are no immediate plans to review or strengthen the process, though RDI Fund governance bodies could act if needed.
Congress MP Praveen Chakravarty asked Parliament to be told about conflict-of-interest safeguards, with a motion on the issue likely on August 13.
- Who
- The Government of India (via the Anusandhan National Research Foundation and Technology Development Board) responded to concerns raised by The Indian Express report and Congress MP Praveen Chakravarty.
- What
- The government defended the RDI Fund's conflict-of-interest safeguards after a report said over 62% of first-round soft loans went to companies with selection committee ties.
- Where
- India — concerns were raised in the Rajya Sabha.
- When
- The government responded on a Friday; the second cohort is set for final approval on August 11, and a parliamentary motion is likely on August 13.
- Why
- To address concerns about conflict of interest in the use of public money (Rs 1 lakh crore) for deep tech R&D loans.
Critics' View
Government's View
Adequacy of conflict-of-interest safeguards
Critics' View
The Indian Express investigation and Congress MP Praveen Chakravarty argue that over 62% of first-round loans going to panel-linked companies raises doubts about safeguards, especially with Rs 1 lakh crore of public money at stake, and want enhanced disclosure, transparency and independent oversight.
Government's View
The government says existing rules already exceed private-sector norms: members must disclose and recuse, companies where members have operational roles or over 10% stakes are disqualified, super-majority voting is required, and the government's exposure is capped at 50% of project cost; the first-round skew reflected early applicants on a first-come-first-served basis.
Independent review of the first round
Critics' View
Chakravarty asked whether an independent review of the first-round approvals will be undertaken and whether conflict-of-interest protocols will be strengthened.
Government's View
The government says there are no immediate plans for a review or further strengthening, and any needed changes would be taken up by the RDI Fund's Executive Council and Empowered Group of Secretaries.
Key facts
- Fund
- Research, Development and Innovation (RDI) Fund
- First round loans sanctioned
- Rs 2,192 crore in soft loans
- First round companies tied to panel members
- 15 of 22 (over 62%)
- Second cohort
- 13 companies recommended; 1 with a selection committee member stake
- Second cohort final approval
- August 11
- Fund custodian
- Anusandhan National Research Foundation (ANRF)
- Loan disbursal agencies
- Technology Development Board (TDB) and BIRAC
- Parliamentary motion expected
- August 13, raised by Congress MP Praveen Chakravarty
Quotes
Shivkumar Kalyanaraman
Chief executive officer of the Anusandhan National Research Foundation (ANRF)
“For example, companies in which the selection committee members have any operational role, or they have founded or own that company, those companies are not even eligible to apply, even if they are very competent otherwise. Similarly, companies in which the selection committee members have more than 10 per cent stake are automatically disqualified.”
indianexpress.com
“There are no immediate plans to further strengthen the process… The governance structure of the RDI Fund is such that there is an Executive Council chaired by the Principal Scientific Advisor to the Government, and an Empowered Group of Secretaries headed by the Cabinet Secretary.”
indianexpress.com
Sources
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