2 weeks ago
India’s ₹1 Trillion RDI Fund Nears Next Manager Selection
India created a large fund to help technology companies grow.
The fund gives money to intermediary managers, which then choose startups to support.
Officials say the next group of managers will be chosen in a few weeks.
They say the decision will be based on merit, not on a fixed number of managers.
Two organizations, TDB and BIRAC, were chosen first and have already started funding startups.
Some reporting has raised questions about possible connections between funded startups and members of a selection committee.
The government says conflict-of-interest rules and careful evaluations are in place.
The fund can support companies in any sector if their projects are strong enough.
The RDI Cell expects to choose its next second-level fund managers within a couple of weeks.
Selection will be merit-based, with no fixed number of managers guaranteed support.
TDB and BIRAC were selected as the first fund managers and have begun issuing funding calls.
TDB had provided ₹2,192 crore to 22 startups, while BIRAC had provided ₹390.35 crore to eight startups by 23 July.
The RDI Cell says the scheme is sector-agnostic and requires eligible startups to reach at least technology readiness level 4.
- Who
- India’s RDI Cell, led in the account by Jyoti Sharma, will select additional second-level fund managers, with the final decision made by an empowered group of secretaries.
- What
- The ₹1 trillion Research, Development and Innovation fund is preparing to select another group of intermediary fund managers for technology startups.
- Where
- The selection process was discussed in New Delhi.
- When
- The final selection meeting is expected within a couple of weeks; the scheme was announced in January 2025 and notified on 3 November.
- Why
- The fund was created to promote large investments in cutting-edge technology firms through long-term, low-interest loans or equity-based funding.
Critics and Industry Stakeholders
Government and RDI Officials
Conflict-of-interest concerns
Critics and Industry Stakeholders
The Indian Express reported that 15 of the 22 startups funded in the first RDI tranche had ties to seven selection-committee members, raising questions about potential conflicts.
Government and RDI Officials
The Press Information Bureau said TDB has a comprehensive conflict-of-interest policy and that selections followed evaluation mechanisms, conflict-of-interest guidelines and merit-based processes.
How fund managers should be chosen
Critics and Industry Stakeholders
Industry stakeholders and consultants said managers should combine long-term investment experience with sector-specific technical expertise, particularly for fields such as quantum computing.
Government and RDI Officials
The RDI Cell says the next managers will be selected on merit, without setting a fixed number of managers or dedicating funding to particular sectors.
Access for early-stage companies
Critics and Industry Stakeholders
Consultants noted that some very early-stage investments may involve backing a broad technology theme when commercial products are many years away, favoring funds experienced at identifying such themes.
Government and RDI Officials
The RDI framework currently requires eligible startups to have a minimum technology readiness level of 4.
Key facts
- Total fund size
- ₹1 trillion
- Expected selection timeline
- A final meeting is due within a couple of weeks.
- First fund managers
- Technology Development Board and Biotechnology Industry Research Assistance Council
- TDB funding
- ₹2,192 crore issued to 22 startups as of 23 July
- BIRAC funding
- ₹390.35 crore issued to eight startups as of 23 July
- Sector focus
- Sector-agnostic; funding depends on the strength of a project.
- Minimum technology readiness level
- Eligible startups must meet TRL 4.
Quotes
Jyoti Sharma
Head of the RDI Cell
“We are moving very fast. From November until now, we have already operationalized the scheme. There are already two second‑level fund managers, and they have already launched their calls. We have already selected the first cohort of startups in the industry, and very soon we will announce the other second‑level fund managers as well.”
livemint.com
“Whoever qualifies, the final decision will be taken by an empowered group of secretaries. There is an exclusive committee that will take the final decision. No fixed number of fund managers; it could be any number.”
livemint.com
Sources
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