Research, Development & Innovation (RDI) Fund Financing Advisory

The RDI Fund (RDIF) helps R&D-intensive and deep-tech companies fund the jump from prototype to scale. It offers concessional loans of up to 50% of project cost at about 3% to 4% interest over 12 to 15 years, with optional equity. Bizastra runs the mandate end to end, from eligibility and project structuring to proposal and fund access. If your R&D leads to a component factory, the Electronics Component Manufacturing Scheme (ECMS) can support the manufacturing build-out.

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Fund corpus over 6 years

Of project cost financed

Concessional interest

Loan tenure with moratorium

Overview

What Is the RDI Fund?

The Research, Development and Innovation (RDI) Fund is a central government fund with a corpus of ₹1,00,000 crore over six years, approved by the Union Cabinet on 1 July 2025. It is implemented under the Anusandhan National Research Foundation, with deployment through agencies such as the Technology Development Board acting as Second Level Fund Managers (SLFM). Its aim is to accelerate private sector participation in research, development and innovation, and to help companies commercialise advanced technologies. Support is primarily through long-term concessional loans, with options for equity participation.

Who Can Apply

RDI Fund Eligibility

The RDI Fund is open to any legal entity registered in India that is developing R&D-intensive technology at TRL 4 and above, that is technology ready for prototype validation and scale-up.

Companies

Companies registered under the Companies Act 2013.

LLPs

Limited Liability Partnerships under the LLP Act 2008.

Partnerships

Partnership firms under the Indian Partnership Act 1932.

DPIIT Startups

Startups recognised by DPIIT.

TRL 4 and above

Technologies ready for prototype validation and scale-up, not early-stage concepts.

R&D-intensive project

The project must involve genuine development, validation, scale-up or commercialisation of R&D-intensive technology.

Where It Applies

Priority Technology Sectors

The RDI Fund focuses on five priority technology sectors.

Energy Security and Climate Technologies

Biotechnology and Medical Technologies

Deep Technology

Digital Economy and Digital Agriculture

Artificial Intelligence Applications

The Financing

RDI Fund Financing Terms

RDIF financing can cover up to 50% of the assessed project cost, with the remaining 50% mobilised by the applicant or private investors. The main terms are below.

Particular	Details
Type of support	Primarily long-term concessional loans, with options for equity participation.
Maximum financing	Up to 50% of the total project cost. The remaining 50% must be contributed by the company or private investors.
Interest rate	About 3% to 4% concessional interest, depending on project evaluation.
Loan tenure	12 to 15 years, including the moratorium period.
Disbursement	Funds released in milestone-based tranches linked to project progress.
Equity participation	Up to 25% of the assistance amount may be taken as equity participation.
Debt-to-equity conversion	Up to 20% of the loan can be converted into equity at a later stage, based on company valuation.
Funding mode	Loan; loan plus equity; or equity participation in strategic cases.

Because RDIF covers only up to half the project cost, the other half of the financing has to be planned before you apply. Getting the eligible project cost, the milestone plan and the loan-equity mix right is where the value is won or lost. Bizastra structures all three so the assessed cost and disbursement schedule work in your favour.

What Is Not Covered

Exclusions Under the Scheme

The RDI Fund is a financing instrument for R&D at TRL 4 and above. It does not cover the following.

#	Excluded
1	Direct grants
2	Short-term working capital loans
3	Pure commercialisation projects with no R&D component
4	Technologies below the TRL-4 stage

How We Help

How Bizastra Handles Your RDI Fund Mandate

The steps are similar across schemes, even though the portals differ.

Assess and Structure

We confirm your entity type and TRL, check your fit with a priority sector, and structure the eligible project cost and the loan-equity mix.

Prepare and Submit

We build the proposal, the milestone plan and the supporting documents, and route the application through the Second Level Fund Manager framework.

Track and Draw Down

We manage evaluation follow-up and the milestone-based tranches so funds are drawn on schedule through the life of the loan.

Bizastra runs the RDI Fund mandate end to end, from the first eligibility check to the final milestone drawdown, so your team can stay focused on the technology.

Why BizAstra

End-to-End Scheme Advisory

Scheme specialists

We work on central and state government schemes every day, so the RDI Fund process and its fund-manager route hold no surprises.

Project cost done right

RDIF funds up to half the project cost. We structure the eligible cost and the loan-equity mix so your assessed number holds up.

Milestone discipline

Disbursement is tranche-based. We plan the milestones so drawdowns land when your project needs the cash.

CA certification in-house

Financials and certifications are handled by our own CA team, which keeps your file clean and credible.

Check If Your Project Qualifies for the RDI Fund

Send us your project details and our team will confirm your eligibility, your TRL and sector fit, and the financing you can raise under the Research, Development and Innovation Fund.

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Frequently Asked Questions

RDI Fund: Common Questions Answered

What is the Research, Development and Innovation (RDI) Fund?

The RDI Fund is a central government fund with a corpus of Rs 1,00,000 crore over six years, approved by the Union Cabinet on 1 July 2025. It is implemented under the Anusandhan National Research Foundation, with deployment through agencies such as the Technology Development Board acting as Second Level Fund Managers. Its aim is to accelerate private sector participation in research, development and innovation and to help commercialise advanced technologies.

Who is eligible for the RDI Fund?

Any legal entity registered in India can apply, including companies under the Companies Act 2013, LLPs under the LLP Act 2008, partnerships under the Indian Partnership Act 1932, and startups recognised by DPIIT. Funding is targeted at technologies at TRL 4 and above, that is technologies ready for prototype validation and scale-up.

How much funding does the RDI Fund provide?

RDIF financing can cover up to 50% of the assessed project cost, with the remaining 50% mobilised by the applicant entity or private investors. Support is primarily through long-term concessional loans at about 3% to 4% interest, with a loan tenure of 12 to 15 years including a moratorium period, disbursed in milestone-based tranches.

What technologies and sectors qualify?

Funding targets R&D-intensive technologies at Technology Readiness Level 4 and above. The priority sectors are energy security and climate technologies, deep technology, artificial intelligence applications, biotechnology and medical technologies, and the digital economy and digital agriculture.

What does the RDI Fund not finance?

The scheme excludes direct grants, short-term working capital loans, pure commercialisation projects with no R&D component, and technologies below the TRL-4 stage.

Can RDIF support include equity, not just a loan?

Yes. Funding can be a loan, a loan plus equity, or equity participation in strategic cases. Up to 25% of the assistance amount may be taken as equity participation, and up to 20% of the loan can be converted into equity at a later stage based on company valuation.