TDB pauses fresh applications under Rs 1 lakh crore RDI Fund
The government has disputed the funding-shortage explanation for hitting pause of receiving fresh applications.
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The Technology Development Board (TDB) has paused accepting fresh applications under the government's Rs 1 lakh crore Research, Development and Innovation (RDI) Fund.
TDB closed its latest call for proposals at 5 pm on September 30, citing "administrative reasons". It said the call will reopen after the applications received so far are assessed.
The Indian Express first reported that TDB had paused fresh applications amid a shortage of funds, citing people aware of the matter. According to the report, TDB had received more than 300 applications and had selected 35 companies for funding across two rounds.
TDB had earlier received Rs 2,000 crore under the RDI Fund and offered Rs 2,192 crore in soft loans to 22 companies in April, the report said. It subsequently selected another 13 companies but had not yet issued letters of intent to them.
The government, however, has disputed the funding-shortage explanation. In a clarification issued on October 1, the Department of Science and Technology said the call was closed because of the "massive influx of project proposals" and that there was "absolutely no shortage" of funds for disbursement to eligible technology entities.
The RDI Fund was approved by the Union Cabinet in July 2025 with a total outlay of Rs 1 lakh crore over six years. The fund is aimed at supporting private-sector research, development and innovation, particularly in areas such as deep tech, artificial intelligence, robotics, quantum technologies, biotechnology and space.
The fund is being deployed through second-level fund managers, which provide financing to companies and projects. TDB is one of the fund managers selected for the scheme, alongside the Biotechnology Industry Research Assistance Council (BIRAC).
The government has said the RDI Fund is intended to help reduce the gap between research and commercialisation by providing long-term financing for high-risk technology projects that may not attract conventional private-sector funding.