RDI Fund ₹1 lakh crore disbursal: Next round to begin soon, says Jitendra Singh
Synopsis
India's ₹1 lakh crore RDI Fund is moving into its next disbursal phase, with the Centre pushing for faster timelines without compromising due diligence. With Second-Level Fund Managers expected within two weeks and AI explicitly on the expansion agenda, the fund is quietly becoming one of the most consequential bets on India's private R&D ecosystem.
Key Takeaways
The next round of disbursals under the ₹1 lakh crore RDI Fund is set to begin shortly, as confirmed at a meeting on 19 August .
Dr Jitendra Singh directed officials to adopt faster timelines while keeping due diligence intact.
Disbursals to some selected firms are already complete; remaining firms are in the final processing stage.
Second-Level Fund Managers (SLFMs) are expected to be selected and announced within two weeks .
The fund carries a 50:50 co-investment structure, with half the capital expected from private equity sources.
Inter-ministerial consultations are expanding the fund's sector scope, with Artificial Intelligence explicitly flagged as a priority area.
The next round of disbursals under the Centre's ₹1 lakh crore Research, Development and Innovation (RDI) Fund is set to begin shortly, with officials confirming that the process for remaining selected firms is already underway. The update came during a monthly joint meeting of Science Secretaries chaired by Union Minister of State for Science and Technology Dr Jitendra Singh on Wednesday, 19 August, in New Delhi.
Current Status of Disbursals
Officials briefed Dr Singh that the first round of application assessment has been completed and positive recommendations are in place for eligible applicants. Disbursals to a portion of the selected firms have already been executed, while the remaining firms are in the final stages of processing. The minister was assured that the outstanding disbursals would be wrapped up shortly.
Dr Singh directed officials to adopt faster timelines going forward, stressing that due diligence must not be compromised but that 'timely release of funds is equally important' to allow firms to advance their research and innovation plans.
Conflict of Interest Safeguards
The minister underscored that the RDI Fund's conflict-of-interest policy is backed by stringent safeguards designed to protect both taxpayers' money and private capital. He noted that stakeholder suggestions on additional protections are welcome and that further safeguards could be considered wherever feasible.
Officials confirmed that robust protocols are being followed for fund disbursement and conflict-of-interest compliance, with transparency, fairness, and accountability cited as guiding principles. The fund's structure places 50 per cent of investment responsibility on private equity sources, creating a shared accountability framework between the government and private investors.
Second-Level Fund Managers and Sector Expansion
The selection and announcement of Second-Level Fund Managers (SLFMs) — who will identify deserving companies and guide them through the RDI framework — is expected to be completed within two weeks. SLFMs are considered a critical link in channelling RDI support to eligible firms effectively.
Inter-ministerial consultations have also been undertaken to broaden the RDI Fund's scope, with inputs sought from various ministries to identify areas of national importance not covered in the initial sector list. Discussions specifically acknowledged the rapidly evolving nature of Artificial Intelligence and the need for the innovation-support ecosystem to remain flexible enough to accommodate emerging technologies.
Broader Policy Context
The RDI Fund push comes as the Centre seeks to deepen private-sector participation in research and development — a domain where India has historically lagged global peers as a share of GDP. The fund's design, with equal private co-investment, is intended to align incentives and move beyond grant-based models that offered limited accountability for outcomes.
Notably, the expansion of strategic sectors under review signals that the government views the RDI framework as a living instrument, capable of adapting to geopolitical and technological shifts. With SLFMs coming online within weeks and inter-ministerial alignment in progress, the pace of disbursals is expected to accelerate through the remainder of the financial year.
Point of View
But the real test lies in execution speed and selection quality — two areas where government-run innovation funds have historically stumbled. The push to appoint Second-Level Fund Managers within two weeks is encouraging, but the emphasis on 'faster timelines' must be matched by transparent outcome metrics. Without published data on which firms received funds, in which sectors, and what milestones triggered disbursals, the conflict-of-interest safeguards — however robust — remain unverifiable to the public. India's R&D spend as a share of GDP has lingered well below global peers for years; a ₹1 lakh crore fund is a meaningful intervention only if its governance keeps pace with its ambition.
NationPress
20 Aug 2026
Frequently Asked Questions
What is the RDI Fund and how large is it?
The Research, Development and Innovation (RDI) Fund is a ₹1 lakh crore government initiative designed to support private-sector firms engaged in research and innovation. It operates on a 50:50 co-investment model, with half the capital expected from private equity sources.
When will the next round of RDI Fund disbursals begin?
The next round is expected to begin shortly, according to officials who briefed Minister of State Dr Jitendra Singh on 19 August. Disbursals to some selected firms are already complete, and the remaining firms are in the final processing stage.
What are Second-Level Fund Managers and when will they be appointed?
Second-Level Fund Managers (SLFMs) are entities responsible for identifying eligible companies and guiding them through the RDI Fund framework. Their selection and announcement is expected to be completed within two weeks of the 19 August meeting.
Which new sectors are being considered under the RDI Fund?
Inter-ministerial consultations are underway to expand the fund's sector coverage beyond the initial list. Artificial Intelligence has been explicitly flagged as a priority area, given the rapidly evolving nature of the technology and the need for a flexible innovation-support ecosystem.
How does the RDI Fund protect against conflicts of interest?
The fund operates under a stringent conflict-of-interest policy with robust mechanisms to protect the integrity of investment decisions. Officials confirmed that transparency, fairness, and accountability protocols are being followed, and additional safeguards are being considered based on stakeholder feedback.
