RDI Fund Roll‑out 2026: TDB & BIRAC as Second Level Fund Managers Boost Strategic Tech

Overview The Union Cabinet approved a ₹1 lakh crore RDI Fund on 1 July 2025 and it was launched by the Prime Minister on 3 Nov 2025. In FY 2026 the Government designated two agencies as SLFMs : the TDB and the BIRAC . Both received a sanction of ₹1,000 crore each. Key Developments In March 2026, TDB got a disbursement of ₹500 crore for investments in eligible technology entities. TDB approved 22 projects worth ₹4,744 crore , including ₹2,192 crore of RDI Fund support. BIRAC shortlisted eight projects for a total of ₹390.35 crore . 162 applications from AIFs and 38 from FROs are under review, amounting to a proposed commitment of around ₹8,000 crore . Important Facts The RDI Fund targets sectors such as energy security, quantum computing, robotics, space, AI applications in agriculture, health and education, biotechnology, digital agriculture and other strategic technologies essential for Atmanirbharta . Under the scheme, support is limited to a maximum of 50 % of the total project cost . For loans, the RDI Fund can provide up to 50 % of the cost; for equity or equity‑linked instruments, it can fund up to 50 % of the round value. Eligible projects must be at TRL 4 or higher. UPSC Relevance Understanding the structure of large‑scale government funding mechanisms helps answer questions on fiscal policy and innovation financing (GS3). The focus on strategic sectors aligns with India’s security and self‑reliance goals, a recurring theme in GS1 and GS3. Knowledge of bodies like TDB and BIRAC is useful for questions on institutional frameworks (GS3). The blended financing model (grant, loan, equity) illustrates public‑private partnership concepts, important for GS3 and GS4. Way Forward The Government plans to onboard more SLFMs , expand the network of participating AIFs and FROs , and mobilise private capital through blended financing. Strengthening stakeholder outreach in major cities will continue to ensure broad participation from academia, industry and venture capitalists. These steps aim to accelerate indigenous technology development and reduce import dependence.