How is ANRF Supporting Private Sector Research with Rs 1 Lakh Crore Fund?
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Synopsis
The recent establishment of a Rs 1 lakh crore fund by the ANRF marks a pivotal moment for India's private sector innovation landscape. This initiative is set to catalyze research and development, promising long-term growth and collaboration across industries. Discover how this fund aims to transform the future of scientific and technological advancements in India.
Key Takeaways
- ANRF has launched a special fund of Rs 1 lakh crore.
- The fund will support private sector research and innovation.
- Second-level fund managers will handle the fund distribution.
- Implementation guidelines have been established for effective governance.
- The initiative aims to foster collaboration among industry, academia, and government.
New Delhi, Oct 11 (NationPress) The Anusandhan National Research Foundation (ANRF), a government-backed science funding organization, has given the green light for a special purpose fund (SPF) aimed at boosting the private sector's capacity for research, development, and innovation (RDI), as announced by the government on Saturday.
This SPF will operate under the auspices of the ANRF, acting as the steward of a substantial Rs 1 lakh crore fund, according to the Ministry of Science and Technology.
The fund itself will not directly invest in businesses or startups; instead, it will allocate resources to second-level fund managers, which could include Alternative Investment Funds (AIF), Development Finance Institutions (DFI), and Non-banking Finance Companies (NBFCs), among others.
In addition, the foundation has approved a set of implementation guidelines and a governance framework for the government’s Rs 1 lakh crore RDI fund.
These guidelines, along with the special financial rules, are designed to establish a robust governance structure and ensure the smooth execution of the initiative, fostering increased private sector engagement and paving the way for sustained innovation-driven growth, as stated by the Ministry.
The guidelines and special financial rules were developed by the Department of Science & Technology (DST) after extensive discussions with various stakeholders, including the Department of Economic Affairs (DEA) and the Department of Expenditure (DoE).
The DST serves as the lead ministry for this initiative, and the RDI scheme will function via a two-tiered funding model.
Second-level fund managers will make recommendations for funding through investment committees comprising experts from finance, business, and technical fields, operating independently from the government, as per the Ministry's announcement.
The ANRF was established in 2024 through the ANRF Act of 2023, with the goal of positioning India as a key player in the global science landscape.
ANRF seeks to foster collaboration among industries, academia, government departments, and research institutions while creating a mechanism for active participation from industries and state governments, in addition to scientific and line ministries.
Point of View
The establishment of the ANRF's special fund is a promising step towards fostering innovation and collaboration among various sectors. As we move forward, it's vital that this initiative effectively engages the private sector to drive long-term growth and scientific advancement.
NationPress
11/10/2025
Frequently Asked Questions
What is the purpose of the ANRF's special fund?
The ANRF's special fund aims to encourage private sector research, development, and innovation by providing financial support through second-level fund managers.
How much funding has been approved?
The ANRF has approved a substantial fund of Rs 1 lakh crore to support private sector initiatives.
Who will manage the fund?
The fund will be managed by second-level fund managers, which may include Alternative Investment Funds, Development Finance Institutions, and Non-banking Finance Companies.
What are the expected outcomes of this initiative?
The initiative aims to boost private sector participation, enhance governance in research funding, and drive long-term innovation across various industries.
When was the ANRF established?
The ANRF was established in 2024 through the ANRF Act of 2023 to promote India's role in global scientific research.
