National Research Foundation to strengthen research eco-system

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Cabinet approves Introduction of National Research Foundation Bill, 2023 in Parliament to strengthen research eco-system in the country​

Posted On: 28 JUN 2023 3:49PM by PIB Delhi

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the introduction of the National Research Foundation (NRF) Bill, 2023 in the Parliament. The approved Bill will pave the way to establish NRF that will seed, grow and promote Research and Development (R&D) and foster a culture of research and innovation throughout India’s universities, colleges, research institutions, and R&D laboratories.

The bill, after approval in the Parliament, will establish NRF, an apex body to provide high-level strategic direction of scientific research in the country as per recommendations of the National Education Policy (NEP), at a total estimated cost of Rs. 50,000 crore during five years (2023-28).

The Department of Science and Technology (DST) will be the administrative Department of NRF which will be governed by a Governing Board consisting of eminent researchers and professionals across disciplines. Since the scope of the NRF is wide-ranging – impacting all ministries - the Prime Minister will be the ex-officio President of the Board and the Union Minister of Science & Technology & Union Minister of Education will be the ex-officio Vice-Presidents. NRF’s functioning will be governed by an Executive Council chaired by the Principal Scientific Adviser to the Government of India.

NRF will forge collaborations among the industry, academia, and government departments and research institutions, and create an interface mechanism for participation and contribution of industries and State governments in addition to the scientific and line ministries. It will focus on creating a policy framework and putting in place regulatory processes that can encourage collaboration and increased spending by the industry on R&D.

The bill will also repeal the Science and Engineering Research Board (SERB) established by an act of Parliament in 2008 and subsume it into NRF which has an expanded mandate and covers activities over and above the activities of SERB.

 
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‘End IITs’ monopoly’, ‘equal access’ to private funding for state universities — Modi govt’s NRF Bill


The bill, introduced in Lok Sabha, proposes setting up of a 'National Research Foundation' that will identify priority areas of research, allocate funds from various sources.


New Delhi: The Union government’s National Research Foundation (NRF) Bill 2023, which was introduced in Lok Sabha Friday, aims to “end IITs’ monopolised benefit of funding” and give state universities equitable access to research funds from philanthropists, industries and private donors.
The NRF is a key recommendation of the National Education Policy (NEP) 2020, which envisaged a high-level body to provide strategic direction and coordination of scientific research in India.
If approved, the bill will pave the way to establish NRF that will seed, grow and promote Research and Development (R&D) and foster a culture of research and innovation throughout India’s universities, colleges, research institutions, and R&D laboratories. It will not be limited to just the elite list of the Indian Institutes of Technology.
“We want to end the IITs’ monopolised benefit of funding and provide equal opportunities to state institutes and students with lesser privilege,” a senior official from the Department of Science and Technology (DST) told ThePrint.
The NRF will function as an apex body to provide high-level strategic direction of scientific research in the country, according to the recommendations of the NEP, at a total estimated cost of Rs 50,000 crore during five years (2023-28).
The main intent behind NRF is to create a corpus of funds from industries, philanthropists and donors, which can then be used to bridge the gap in access to financial resources for state universities, ThePrint has learnt.
Though national institutes and learning centres will continue to have access to the funds, the focus, however, will be to give more access to state universities, as the national universities already get a lot of alumni and philanthropic funds, officials said.
Currently, most of the DST’s funding towards research projects goes to elite institutes like the IITs, which also attract funds from other sources due to their global reputation and excellence in research. This has helped IITs build world-class infrastructure and excel in research, while tier-II universities are left behind in a vicious cycle, where they lack the resources to build capacity that would attract industry funding.

Funding sources and distribution

There is currently no mechanism through which the government science bodies can accept research funds from private entities, the DST official quoted earlier, told ThePrint.
The estimated cost of setting up and running the NRF for five years (2023-28) is Rs 50,000 crore. Of this, the NRF will receive 10,000 crore from the central government over the next five years, apart from the 4,000 crore already allocated to the Science and Engineering Research Board (SERB). The remaining 36,000 crore will be from private bodies like industries, philanthropists and donors.
The NRF may also accept Corporate Social Responsibility (CSR) funds in the future. This fund will then be used to fund research in state universities, particularly at the post-doctoral level.
The NRF will identify priority areas of research based on national needs and global trends, and allocate funds accordingly. The aim is to target smaller universities and hand-hold them to improve their research capabilities, senior officials in the science ministry told ThePrint.
The officials added that the government has been studying models of research funding bodies from around the world to make the best possible model.
Meanwhile, all the existing funding schemes from the science ministries will continue to function as is, the officials said.
A coordinated funding effort will also ensure that researchers do not work in silos, and that funds are not wasted by multiple groups working separately on similar projects. Not only will NRF aim at bridging the gap in funding, but also promote industry collaborations and translational research.

Structure and functions of NRF

The formation of NRF has been under discussion since 2019. The Department of Science and Technology will be the administrative department of NRF, which will be governed by a board consisting eminent researchers and professionals across disciplines.
The Prime Minister will be the ex-officio president of the board and the Union ministers of science & technology and education will be the ex-officio vice-presidents.
NRF’s functioning will be governed by an executive council chaired by the principal scientific adviser to the Government of India.
The Bill will also repeal the SERB established by an Act of Parliament in 2008 and subsume it into NRF, which has an expanded mandate and covers activities over and above the activities of SERB.
The governing board of 16 members will include five representatives from industries, two from scientific institutes, one researcher from a social science background, six research experts and two members from the Prime Minister’s Science, Technology and Innovation Advisory Council (PM-STIAC).
This body will set research priorities. Industries that want to fund research to solve specific industry-related problems will have access to a wider network of research institutes to choose from. To attract such funds for the NRF, the government will now have to work towards improving the infrastructure capabilities of state institutions.
 
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Budget 2024 Brings Good News For Scientists: Huge Corpus To Fund Research

"The new corpus is a much-needed and very welcome announcement," Dr Abhay Karandikar, an engineer and Secretary of the Department of Science and Technology, told NDTV​


New Delhi: Finance Minister Nirmala Sitharaman's budget announcement of a scheme to boost scientific research has won the hearts of the country's scientific community. In the interim budget, which comes months ahead of the Lok Sabha polls, the government announced a plan for long-term funding of research.

"The new corpus is a much-needed and very welcome announcement," Dr Abhay Karandikar, an engineer and Secretary of the Department of Science and Technology, told NDTV. He added that the patient capital is needed for the country's deep-tech start-ups to succeed. "It will help rev up the science, technology and innovation ecosystem, propelling India to become a developed country by 2047 and that can happen only with a solid foundation of science and technology," he said.

Where this new corpus will be anchored is not clear yet.

Announcing the corpus under the subhead 'Research and Innovation for catalyzing growth, employment and development', Ms Sitharaman said former Prime Minister Lal Bahadur Shastri had given "Jai Jawan, Jai Kisan" slogan. "Prime Minister (Atal Bihari) Vajpayee made that 'Jai Jawan Jai Kisan Jai Vigyan'. Prime Minister (Narendra) Modi has furthered that to 'Jai Jawan Jai Kisan Jai Vigyan and Jai Anusandhan', as innovation is the foundation of development," she said.

"For our tech-savvy youth, this will be a golden era. A corpus of rupees 1 lakh crore will be established with 50-year interest free loan. The corpus will provide long-term financing or refinancing with long tenors and low or nil interest rates. This will encourage the private sector to scale up research and innovation significantly in sunrise domains. We need to have programmes that combine the powers of our youth and technology. A new scheme will be launched for strengthening deep-tech technologies for defence purposes and expediting 'atmanirbharta'," the minister added.

Jitendra Singh, Union Minister of State Science and Technology, said, "The corpus of ₹ 1 lakh crore announced in the interim Budget to promote innovation and startups coupled with a new scheme for deep tech startups in defence and an exclusive biomanufacturing scheme to supplement bio-startups and bio-economy, all this point to PM Modi's clarity and conviction to optimally utilise science and technology for achieving the goal of Viksit Bharat by 2047".

A top scientist from the Department of Science Technology welcomed the announcement and called it a "completely new idea" that will help feed the Anusandhan National Research Foundation effort that hopes to boost the country's science and technology using local talent.

The past year has been a year of seismic changes in India's science and technology ecosystem. The government set up a new body that will oversee research and development with a projected outlay of a whopping ₹ 50,000 crore.

The Parliament last year passed the Anusandhan National Research Foundation Bill, which paves the way for setting up the apex body. The objective of this foundation is to provide high-level strategic direction to the scientific research in the country as per recommendations of National Education Policy (NEP).

Speaking in the Parliament, Union Science Minister Dr Jitendra Singh said the Anusandhan National Research Foundation will define the stature of India in 2047 and catapult us to the league of developed nations, pioneering new research in new frontiers.

"This is a Bill which is going to have a long-term effect, long term outcomes and all of us, each citizen of India, including those sitting on the other side, are going to be stakeholders. To that extent, this is possibly history in making," he said.

"It envisages spending of ₹ 50,000 crore for five years, out of which ₹ 36,000 crore, almost 80%, is going to come from non-government sources, from industry and philanthropists, from domestic as well as outside sources," he said.
 

Cabinet Approves Research Development and Innovation (RDI) Scheme to scale up Research, Development and Innovation in Strategic and Sunrise Domains​

Posted On: 01 JUL 2025 3:08PM by PIB Delhi

In a transformative step to bolster India’s research and innovation ecosystem, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has today approved the Research Development and Innovation (RDI) Scheme with a corpus of Rs. One lakh Crore.

Recognizing the critical role that the private sector plays in driving innovation and commercializing research the RDI Scheme aims to provide long-term financing or refinancing with long tenors at low or nil interest rates to spur private sector investment in RDI. The scheme has been designed to overcome the constraints and challenges in funding of private sector and seeks to provide growth & risk capital to sunrise and strategic sectors to facilitate innovation, promote adoption of technology and enhance competitiveness. Key objectives of the Scheme are as follows:

a) Encourage the private sector to scale up research, development, and innovation (RDI) in sunrise domains and in other sectors relevant for economic security, strategic purpose, and self-reliance;

b) Finance transformative projects at higher levels of Technology Readiness Levels (TRL)

c) Support acquisition of technologies which are critical or of high strategic importance;

d) Facilitate setting up of a Deep-Tech Fund of Funds.

The Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overarching strategic direction to the RDI Scheme. The Executive Council (EC) of ANRF will approve the Scheme’s guidelines, and recommend 2nd level fund managers and scope and type of projects in sunrise sectors. An Empowered Group of Secretaries (EGoS) led by the Cabinet Secretary, will be responsible for approving scheme changes, sectors and types of projects as well as second-level fund managers besides reviewing the performance of the Scheme. The Department of Science and Technology (DST) will serve as the nodal department for implementation of RDI Scheme.

The RDI Scheme will have a two-tiered funding mechanism. At the first level, there will be a Special Purpose Fund (SPF) established within the ANRF, which will act as the custodian of funds. From the SPF funds shall be allocated to a variety of 2nd level fund managers. This will be mainly in the form of long-term concessional loans. The funding to R&D projects by the 2nd level fund managers would normally be in the form of long-term loan at low or nil interest rates. Financing in the form of equity may also be done, especially in case of startups. Contribution to Deep-Tech Fund of Funds (FoF) or any other FoF meant for RDI may also be considered.

By addressing the critical need of private sector for long-term, affordable financing, the RDI Scheme fosters self-reliance and global competitiveness, thereby facilitating a conducive innovation ecosystem for the country as it marches towards Viksit Bharat at 2047.
 
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More than 100 Indian venture capital firms, including Mela Ventures, Ideaspring Capital and Blume Ventures, have applied for the government’s Research, Development and Innovation (RDI) fund as they double down on deeptech investments, multiple investors told ET.

The RDI fund, with an outlay of Rs 1 lakh crore, will function as a fund of funds to catalyse private investments in deeptech and R&D-focused startups over a period of six years, in addition to loan financing to startups.

VCs that have applied for the scheme include 3one4 Capital, Chiratae Ventures, Wyser and Waterbridge Ventures.

While over 100 funds have applied, investors said it is unlikely that all the funds will receive approval. Successful applicants can use the government allocation to invest in deeptech startups.

The initiative could result in “manifold expansion in the number and quality of deeptech companies in India,” Arpit Agarwal, investment partner at Blume Ventures, told ET. “We confirm that we have applied for the funding as part of this scheme, hoping to expand our footprint in this area,” he said.

Vishal Katariya of Ankur Capital said RDIF will allow VCs to expand their funding pool and add to the growth capital. “For the deeptech funds, growth capital is a challenge. This will help in bridging the gap,” he added.

As per the Department of Science and Technology (DST), which is handling the scheme announced in the July 2025 budget, the fund will be distributed in the form of loans at low or nil rates, equity in startups, or contribution to deeptech fund of funds.

The DST opened applications for the RDI fund in January.

Initiatives such as RDI and IndiaAI mission are steps to create a sustainable tech ecosystem that can foster innovation like in the US and China where the governments have invested billions in science and technology.

“The government has been opening newer avenues for raising funds, such as Pension Fund Regulatory and Development Authority (PFRDA), where they can invest a corpus of 5% in VC funds, and the latest being RDI,” said Krishnakumar Natarajan, managing partner at Mela Ventures. “All these encourage investments in the deeptech sector, which is important.”

He confirmed Mela Ventures has applied for the RDI fund.

Wyser also confirmed applying for the fund, while other VC firms did not respond to ET's email seeking confirmation.

Manish Kheterpal, managing partner at Waterbridge Ventures, said RDI is for the deeptech ecosystem what Sidbi (Small Industries Development Bank of India) was for the startup ecosystem over the last decade. Sidbi’s fund of funds started with Rs 10,000-crore corpus and has helped catalyse over Rs 80,000 crore (8x capital) in over 150 funds across the country.

About 50% of Waterbridge Ventures’ investments are in the deeptech domain.

Pranav Pai, managing partner at 3one4 Capital, said that while the initiative has come in late compared to other top five economies, it is a strategically vital move.

In the current geopolitical situation, all it takes is a sanction or energy blockade to isolate a country, he noted. India has already suffered the “guilty by association” treatment before and must not risk sovereign self-reliance to bureaucratic delays. A delay at a time when the world is moving inwards will have an impact, Pai told ET.