Govt selects 19 fund managers under RDI, committing Rs 7,131 crore

The government has selected 19 fund managers for its Rs 1 lakh crore Research, Development and Innovation (RDI) scheme, committing Rs 7,131 crore to the first cohort as it looks to channel long-term capital into deeptech startups and private sector research and development.

Sources told ET that more than 160 venture capital firms had applied to access the government-backed capital pool. Out of the 19 selected 14 are Alternative Investment Fund (AIFs) and five are Focused Research Organisations (FROs).

As reported by ET earlier, applicants included Mela Ventures, Blume Ventures, Ideaspring Capital, 3one4 Capital, Chiratae Ventures, Wyser Capital, Waterbridge Ventures, Ankur Capital and pi Ventures, among others. The government is yet to release the list of the 19 fund managers.


The selection process focused on the applicants' capabilities and depth of expertise in deeptech, a person familiar with the process told ET on condition of anonymity. "The process took time as the government sought to put in place a robust system to assess the quality and readiness of fund managers before committing public capital," they added.

The government also plans to announce the second cohort shortly, sources said. "Applicants who were not selected in the first round can address the feedback received during the evaluation and reapply in subsequent cohorts," the person said. Not being selected in the first round does not rule out their participation in later rounds.

The government is also open to expanding commitments depending on the quality and number of proposals received. While the scheme has an overall corpus of Rs 1 lakh crore, the actual drawdown will depend on the progress of selected fund managers, their ability to raise matching capital from private investors and the pace at which funding can be deployed into eligible companies.

The Empowered Group of Secretaries (EGoS), at a meeting held on October 8, approved 14 alternative investment funds (AIFs) and five focused research organisations (FROs) as second-level fund managers (SLFMs), the Department of Science and Technology said in a statement on Monday. The first call for applications from prospective fund managers was launched in January 2026.

The applications went through a multi-stage evaluation process, including an assessment of proposals and in-person interactions with an Expert Advisory Committee. The proposals were subsequently placed before the Executive Council of the Anusandhan National Research Foundation (ANRF) and the EGoS for approval.

"The distinction between commitments and drawdowns is important, as the government's commitment to a fund manager does not mean the entire amount will be released upfront. Disbursements will follow due process and depend on the fund managers' ability to mobilise capital and deploy it into eligible companies," the source mentioned above said.

The Technology Development Board (TDB), one of the government’s second-level fund managers under the RDI scheme, has already begun deploying capital. TDB had received 124 proposals by April 2026, of which it had approved 22 projects, with financial assistance of Rs 2,192 crore against a total project cost of Rs 4,744 crore.

Companies including Dhruva Space, Agnikul Cosmos, The ePlane Company, Ather Energy, GalaxEye and Noccarc Robotics, across sectors such as space technology, electric mobility, robotics and healthcare have received the approval.

The selected fund managers will use the capital to fund technology enterprises undertaking research, development and innovation at Technology Readiness Level (TRL) 4 and above. The scheme is designed to support technologies that have progressed beyond the early research stage but require further development and financing before commercial deployment.

Launched in November 2025, the RDI scheme aims to address the financing gap for high-risk, capital-intensive technology development and encourage private sector investment in strategic and emerging technology areas.

The scheme follows a two-tier structure, with the government-backed Special Purpose Fund housed within ANRF channelling capital through selected second-level fund managers, which then finance eligible companies.

The scheme is expected to support research and development across areas such as artificial intelligence, quantum computing, robotics, space technology and biotechnology, with the broader objective of strengthening domestic technology capabilities and reducing dependence on imported technologies.