RDI Fund for deeptech startups: ₹1 lakh crore explained

In short

The ₹1 lakh crore RDI Fund lends to technology firms at TRL 4 and above through fund managers; 19 were approved in October 2026 with ₹7,131 crore committed (PIB).

Most Indian deeptech founders have heard of the ₹1 lakh crore Research, Development and Innovation (RDI) Fund. Fewer know that you cannot apply to it directly. The money moves through approved fund managers, and each has its own call. This page explains the structure, the terms the government has stated, who the first fund managers are, and what we could not find.

1. What the RDI Fund is

The Union Cabinet approved the RDI Scheme on 1 July 2025 with a corpus of Rs. One lakh Crore. The Department of Science and Technology (DST) is the nodal department. The Prime Minister launched it in November 2025, and it is run by an independent business unit inside the Anusandhan National Research Foundation (ANRF).

Its aim, in the Cabinet's words, is long-term financing or refinancing with long tenors at low or nil interest rates, to push private firms to spend more on research and development. The listed objectives include financing projects at higher technology readiness levels (TRL), supporting the acquisition of critical technologies, and setting up a Deep-Tech Fund of Funds.

2. Two tiers, and why that matters to you

The scheme has two tiers:

A Special Purpose Fund inside ANRF holds the money.
Second-level fund managers (SLFMs) receive money from it and lend or invest in companies.

For you, the second tier is the front door. The Cabinet note says funding to R&D projects by SLFMs would normally take the form of long-term loans at low or nil interest, and that equity may also be used, especially for startups.

PIB's description of the October 2026 announcement says SLFMs channel RDIF capital to Eligible Technology Enterprises undertaking R&D and innovation at TRL 4 and above, and are expected to mobilise private capital equal to the RDIF contribution. So the fund is designed to co-finance, not to cover your whole budget.

3. The terms stated for the first open call

The first open call came from the Technology Development Board (TDB), launched on 4 February 2026. PIB's report of the launch gives these terms:

Term	What was stated
Stage	Projects at TRL 4 and above
Share of cost	Up to 50 per cent of total project cost, matched by the company or private investors
Form	Loans, equity or hybrid instruments, depending on the project
Interest	Around 2 to 4 per cent, concessional
Tenor	Up to 15 years, with moratorium provisions
Security	Collateral-free; no personal or corporate guarantees
Grants	None. The call "does not provide grant funding"

The headline in the same release also mentions an 8-week approval timeline. Treat it as a target, not a promise.

If you have been funded by grants so far, note the shift: this is repayable money, or equity. Our page on government grants for deeptech startups covers the grant side.

4. Who the fund managers are

TDB and the Biotechnology Industry Research Assistance Council (BIRAC) were the first two SLFMs. The April 2026 PIB report ties BIRAC to the biotechnology segment.

On 12 October 2026, PIB announced a first cohort of 19 SLFMs approved by the Empowered Group of Secretaries on 8 October 2026: 14 Alternative Investment Funds and 5 Focused Research Organisations. The total RDIF commitment to them is ₹7,131 crore. The release did not name the 19 in the text we read, so check the ANRF or DST site for the list.

Two numbers put that in scale. ₹7,131 crore is about 7% of the ₹1 lakh crore corpus, and works out to about ₹375 crore per manager on average. The ₹7,131 crore is a commitment to fund managers, not a count of loans to companies.

5. How demand looks so far

At the TDB launch in February 2026, the Minister said nearly 191 proposals had been received.
In April 2026, PIB reported that TDB had received over 100 proposals within two months of its call, and that six companies recommended by the investment committee were being taken forward.
The same report mentions optionally convertible debt (OCD) as an instrument meant to support startups without immediate equity dilution.

Those two proposal counts come from different PIB releases and may measure different things, so do not add them.

6. What we could not find

We did not find a public count of TDB loans sanctioned or rupees disbursed, the names of the 19 managers, or investment-size limits for each manager. Those are the details that decide whether the fund fits a seed-stage team, so ask each manager directly.

7. A checklist before you approach a fund manager

[ ] Can you show that your technology is at TRL 4 or above, with test results?
[ ] Can you match the money? Up to 50 per cent from the fund means you or your investors fund the rest.
[ ] Can you service a loan? Cash flow matters even at concessional rates.
[ ] Do you prefer debt, equity or a hybrid? Ask each manager what it offers.
[ ] Does your sector fit? BIRAC is the route for biotechnology; ask TDB and the other managers about the rest.
[ ] Does your cap table allow a government-backed investor?

Funding terms change by call; confirm them in the current call document and with a professional adviser before you commit.

Questions people ask

Can a startup apply to the RDI Fund directly?

No. PIB says funding is provided through second-level fund managers.

Is the RDI Fund a grant?

No. The TDB call states that it does not provide grant funding. It offers loans, equity or hybrid instruments.

What interest rate does it charge?

The Minister said around 2 to 4 per cent at the February 2026 launch of the first TDB call. The rate may differ by manager and project.

Who approved the fund managers?

PIB says the Empowered Group of Secretaries approved the first cohort on 8 October 2026, after evaluation by an Expert Advisory Committee and the ANRF Executive Council.

Sources

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