1 week ago
Minister Welcomes More Safeguards Amid RDI Fund Concerns
The government created the RDI Fund to lend money to private companies developing advanced technologies.
The fund is planned to have Rs 1 lakh crore over six years.
Some companies chosen for the first loans had investment connections to people on the selection panel.
Those panel members said they had these interests and did not judge the companies connected to them.
This led to questions about whether the selection process was fair.
Minister Jitendra Singh said strong rules already exist to prevent conflicts of interest.
He said the government is willing to consider more safeguards where possible.
He also said companies should receive money on time after careful checks.
Science Minister Jitendra Singh said the RDI Fund has stringent conflict-of-interest safeguards.
An Indian Express investigation reported that 15 of 22 first-round companies had investment ties to seven selection-panel members.
Panel members declared their interests and recused themselves from evaluating companies in which they had a stake.
The first funding round approved Rs 2,192 crore in loans for 22 companies, under a planned Rs 1 lakh crore corpus.
Singh said due diligence must remain uncompromised, while stakeholders’ suggestions for additional safeguards would be considered.
- Who
- Science and Technology Minister Jitendra Singh, the RDI Fund, private companies, and members of its selection panel.
- What
- Singh defended the fund’s existing conflict-of-interest safeguards while welcoming suggestions to strengthen them.
- Where
- New Delhi, during a monthly meeting of science secretaries.
- When
- Wednesday, August 19; the fund was created in 2025, according to PTI.
- Why
- The safeguards are intended to protect taxpayers’ money and private capital while enabling funding for advanced research and innovation.
Concerns About the Selection Process
Government’s Defense and Response
Potential conflicts of interest
Concerns About the Selection Process
The Indian Express reported that many companies selected for funding had investment ties to members of the selection panel, raising questions about conflict of interest and propriety.
Government’s Defense and Response
The government said panel members declared their interests and recused themselves from evaluating companies in which they had a stake, while Singh described the safeguards as stringent.
Need for additional safeguards
Concerns About the Selection Process
The reported connections underlined concerns that the existing process might need stronger protections against perceived or actual conflicts.
Government’s Defense and Response
Singh said stakeholder suggestions were welcome and that more safeguards could be considered wherever feasible.
Verification versus speed
Concerns About the Selection Process
Questions about the selection process raised concerns about whether funding decisions were sufficiently independent and properly verified.
Government’s Defense and Response
Singh said due diligence and verification must not be compromised, but timely fund releases are also necessary for companies to continue their work.
Key facts
- Fund
- Research, Development and Innovation (RDI) Fund
- Planned corpus
- Rs 1 lakh crore over six years
- First-round approvals
- Rs 2,192 crore in loans for 22 companies
- Reported connections
- 15 of the 22 first-round companies had investment ties to seven selection-panel members, according to The Indian Express
- Loan limit
- Selected companies can receive up to 50 per cent of project costs
- Eligible areas
- Quantum computing, robotics, space, biotechnology, clean energy, climate action, and other deep-tech sectors
- Minister’s position
- Due diligence and verification must remain uncompromised, but fund releases should also be timely
Quotes
Union Minister Jitendra Singh
Government of India minister responsible for science and technology
“The RDI Fund’s conflict‑of‑interest policy was protected by stringent safeguards to ensure the protection of taxpayers’ money and private capital”
theprint.in
““wherever feasible, more safeguards could be considered.””
indianexpress.com
Sources
Related news
Government says checks in place after RDI Fund conflict report
Government says RDI Fund safeguards robust, no committee member conflicted
Investigation finds tech fund conflicts: 62% lent to panel-linked firms
Rajya Sabha MP flags deep-tech grants worth Rs 1,377 crore
India's Chief Economic Advisor Defends Deep-Tech Fund Against Conflict Claims
India’s ₹1 Trillion RDI Fund Nears Next Manager Selection
India's R&D Ecosystem Faces Hurdles On Path To Knowledge Economy
Race, Media Scrutiny, and the Death of Jason Arday
