RDI scheme: Govt denies fund shortage, cites project surge pause
Synopsis
India's Science Ministry has pushed back hard against reports of a fund crunch in the ₹1 lakh crore RDI scheme — insisting TDB hit pause only because proposals flooded in faster than they could be reviewed. The Investment Committee is working overnight to clear the backlog, and new fund managers are being added. The clarification matters: any perception of fiscal stress in the scheme could chill the private co-investment that the programme's architecture depends on.
Key Takeaways
The Ministry of Science and Technology on 1 October 2026 denied media claims of a fund shortage in the RDI scheme .
TDB closed its running call for purely administrative reasons due to a massive influx of project proposals received until 30 September 2026 .
The Investment Committee and TDB are working overnight to expedite evaluation; the call will reopen shortly.
DST and ANRF are onboarding additional Second-Level Fund Managers (SLFMs) to expand disbursal capacity.
The overall ₹1 lakh crore RDI Scheme remains fully funded and operational, with disbursals to ETEs contingent on matching private capital.
The Ministry of Science and Technology on Thursday, 1 October 2026, categorically refuted media reports claiming that the Technology Development Board (TDB) closed its running call under the Research, Development and Innovation (RDI) scheme due to a shortage of funds. The Ministry clarified that the pause was purely administrative, triggered by a massive influx of project proposals that required structured evaluation.
What the Government Said
In an official statement, the Ministry said: 'The media report claiming the shortage of funds as the reason for closure of the RDI call by TDB is not correct. TDB has closed its running call purely on 'Administrative Reason' as notified on its website.' The call was shut temporarily after proposals received through 30 September 2026 overwhelmed the review pipeline.
The statement further noted that the Investment Committee (IC) and TDB are 'working overnight' to complete the evaluation process expeditiously, and that the call will reopen shortly once all submitted projects have been assessed.
No Fund Crunch, More Managers Coming
The Ministry was emphatic on the funding position: 'There is absolutely no shortage of fund for disbursement to Eligible Technology Entities (ETEs).' Additionally, the Department of Science and Technology (DST) and the Anusandhan National Research Foundation (ANRF) are in the process of onboarding several additional Second-Level Fund Managers (SLFMs) in the near future, which would expand the scheme's disbursal capacity significantly.
How the RDI Scheme Works
The ₹1 lakh crore RDI Scheme is designed and overseen jointly by DST and ANRF, which serve as the apex government bodies for funding deep-tech and strategic innovation. TDB operates as one of the SLFMs under the broader Research, Development and Innovation Fund (RDIF) framework. It selects ETEs — qualifying corporate entities, companies, and startups working on RDI-intensive or deep-tech innovations in strategic and sunrise sectors — to receive long-term, low-cost financing and large-ticket loans.
Critically, TDB releases financial support to an ETE only after the entity successfully raises matching capital from non-governmental or private sources, ensuring a co-investment discipline built into the scheme's architecture.
Why This Clarification Matters
The media report in question had raised concern among startups and deep-tech firms that had filed proposals, suggesting potential disruption to a flagship scheme designed to accelerate India's innovation ecosystem. The government's swift rebuttal aims to restore confidence among Eligible Technology Entities and private co-investors who are evaluating participation. Notably, the sheer volume of proposals received points to strong demand from the startup and deep-tech community — which the Ministry described as a positive indicator rather than a systemic problem.
The RDI scheme remains one of India's most ambitious science-funding initiatives, and its execution in these early stages will set the template for how large-scale deep-tech financing operates in the country going forward.
Point of View
But it also exposes a design gap: the evaluation infrastructure was not scaled to match the ambition of a ₹1 lakh crore programme. Adding more Second-Level Fund Managers is the right structural response, but the timeline for that expansion will determine whether the momentum from this first wave of applicants is preserved or dissipated. The overnight evaluation effort is an emergency fix; the durable answer is institutional capacity.
NationPress
1 Oct 2026
Frequently Asked Questions
Why did TDB close its call under the RDI scheme?
TDB closed its running call for purely administrative reasons, not due to a fund shortage. A massive influx of project proposals prompted the board to take a temporary pause to assess all submissions received until 30 September 2026 before reopening the call.
Is there a shortage of funds in the RDI scheme?
No. The Ministry of Science and Technology has categorically stated there is 'absolutely no shortage of fund for disbursement to Eligible Technology Entities.' The ₹1 lakh crore scheme remains fully funded.
When will the TDB call reopen?
The Ministry has said the call will reopen 'shortly' after the Investment Committee and TDB complete the evaluation of all proposals already received. No specific date has been announced as of 1 October 2026.
What is the RDI scheme and who manages it?
The Research, Development and Innovation (RDI) Scheme is a ₹1 lakh crore government initiative overseen by DST and the Anusandhan National Research Foundation (ANRF) to fund deep-tech and strategic innovations. TDB acts as one of the Second-Level Fund Managers (SLFMs) that selects and disburses loans to qualifying Eligible Technology Entities.
Who are Eligible Technology Entities (ETEs) under the RDI scheme?
ETEs are qualifying corporate entities, companies, and startups that develop RDI-intensive or deep-tech innovations in strategic and sunrise sectors. They receive long-term, low-cost financing from TDB only after successfully raising matching capital from private or non-governmental sources.
