Investigation into RDI Fund Allocation
An investigation by The Indian Express revealed that 15 out of 22 private companies awarded soft loans from a public deep-tech fund have investment ties with seven members of the selection committee.
Overview of the RDI Fund
- Objective: Provide collateral-free, low-cost, long-term loans to private companies in advanced research sectors such as AI, quantum technology, space science, and more.
- Corpus: Rs 1 lakh crore, housed under the Anusandhan National Research Foundation (ANRF).
- Purpose: Promote research and innovation, mobilize additional R&D resources, and strengthen industry-academia collaborations.
Fund Management Structure
- Special Purpose Fund (SPF): Custodian of the RDI Fund's allocated money.
- Second-Level Fund Managers (SLFMs): Responsible for disbursing loans and selecting Eligible Technology Entities (ETEs).
- Currently, two SLFMs: Technology Development Board (TDB) and Biotechnology Industry Research Assistance Council (BIRAC).
Selection Process
- SLFMs make final decisions post assessments and background checks.
- Investment committees evaluate proposals; a non-recommended company by the committee is not selected.
- 21 private sector members and one non-voting government representative in TDB's investment committee.
Suggested Improvements
- Include scientists and academics on investment committees for unbiased evaluations.
- Require public disclosure declarations by committee members to enhance transparency.
Loan Details
- Eligibility: Technologies at TRL4 (validated under laboratory conditions).
- Loan Terms: Up to 50% of project cost, collateral-free, 2-4% interest for 15 years.
- Proposals assessed on scientific, technological, financial, and commercial merits.
Application Process
- In the first round, TDB reviewed 124 applications; 51 evaluated, 22 selected, receiving Rs 2,192 crore.
- The remaining 73 applications are under review; more applications are incoming.
- The second round of funding by TDB is expected to conclude this month.
