India
RDI deep-tech fund pauses after Rs 2,000 crore spent
The Indian Express··30 Sept
India's Rs 1 lakh-crore Research, Development and Innovation Fund paused fresh offers after Technology Development Board exhausted Rs 2,000 crore in April. TDB offered soft loans totalling Rs 2,192 crore to 22 companies in round one. More than 300 firms applied and 35 were selected. Letters of intent for 13 second-round picks remain unsigned without new DST money.
Prism
What It Means For You
- Start-ups awaiting RDI loans face delays until DST releases the next tranche to TDB.
- Applicants already shortlisted in round two cannot receive letters of intent until funding arrives.
- Only TDB has disbursed so far among nominated second-level fund managers.
What's Happening
- TDB stopped inviting applications because it lacks money after the first April disbursement.
- DST holds Rs 23,000 crore in budget allocations but has not yet passed the next slice to TDB.
- BIRAC has not started selections because of tax questions on converting loans to equity.
Why disbursement stalled
- The fund launched in November 2025 under ANRF to back quantum, space, robotics and AI ventures.
- Rules require companies to raise half of project costs from non-government sources.
- Appointment of additional private second-level fund managers was delayed after January applications.
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