Cash for Code: ₹1L‑Cr Scheme Gives Deep‑Tech Startups a Glow-Up

1. Cabinet Approves Game-Changing R&D Push

Policy Highlights:

The Union Cabinet has sanctioned a ₹1 lakh crore Research, Development and Innovation (RDI) Scheme to increase private investment in frontier technologies at a quicker rate.

The fund is designed to bridge the funding gap for high-impact R&D in sunrise emerging sectors like clean energy, AI, biotech, deep tech, digital agriculture, and strategic technologies.

Money will be disbursed in the form of zero-interest 50-year loans to the Anusandhan National Research Foundation (ANRF), the central trustee.

2. How It Works: A Two-Tiered Funding Engine

Structural Insights:

A Special Purpose Fund (SPF) will be set up in ANRF to invest in second-level fund managers.

These are the managers who will deliver long-term concessional financing or equity to deep-tech startups, startups, and private firms.

The program is designed to support finance projects beyond the prototype stage—often referred to as the "valley of death" in the innovation journey.

3. Strategic Objectives: From Autonomy to International Competitiveness

Vision Takeaways:

The RDI Scheme is part of India's larger vision of Viksit Bharat 2047 to make India a global innovation hub.

It will fund technology acquisition, commercialization, and creation of a Deep-Tech Fund of Funds.

The program also seeks economic security and strategic autonomy by promoting technologies of critical national interest.

4. Governance and Oversight: Who's in Charge

Implementation Design:

The ANRF Governing Board, Chairperson being the Prime Minister, will provide strategic direction.

An Executive Council will make recommendations for guidelines, choose fund managers, and determine project scopes.

A powerful group of Secretaries, led by the Cabinet Secretary, will oversee performance and approve changes.

5. Why It Matters: A Long-Awaited Boost for Private Innovation

Sectoral Impact:

India's Gross Expenditure on Research and Development (GERD) is a mere 0.64% of GDP—far behind world champions. The approach is meant to address the historical under-financing of private R&D, especially in high-risk, high-reward sectors.

By making available low-cost, long-tenor capital, the government hopes to initiate a wave of private innovation and technologically driven growth.

Sources: Financial Express, Hindustan Times, Times of India, MSN News, Press Information Bureau.