Recently, the Prime Minister of India, Mr Narendra Modi, has launched an innovation initiative known as PM Modi 1 lakh Crore RD Scheme under which the Government aims to boost the private sector-led research and development ecosystem in India. It aims to provide long-term and low-cost financing for high-risk projects in critical and emerging sectors, along with encouraging private sector R&D. All those private companies and startups that are interested and want to apply under this scheme can simply visit the official website and register themselves online.
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What is PM Modi 1 Lakh Crore RD Scheme
The Honourable Chief Minister of India, Shri Narendra Modi, has launched this impactful, innovative program known as PM Modi 1 lakh crore RD Scheme on 3rd November, 2025. This scheme aims to catalyse private sector participation in high-impact research development and innovation within India. This RDI Scheme is mainly for private sector entities, including companies, startup, and private research institutions who are undertaking high-impact, high-risk R&D projects in specific strategic sectors.
Objective of PM Modi 1 lakh Crore RD Scheme
The main objective behind this PM Modi 1 lakh crore RDI Scheme is to bridge the gap between academic research and market application. The main aim is to incentivise and catalyse private sector participation in high-impact research and development (R&D) within strategic and emerging technological fields. This initiative aims to collaborate between academia, research institutions and the private sector.
PM Modi 1 lakh Crore RD Scheme Apply Online
- Develop a comprehensive R&D project proposal that fits within the scheme’s 11 identified thematic areas (AI, clean energy, etc.).
- Select a suitable Fund Manager SLFM once the official list is announced.
- Now apply directly to your chosen SLFM with all documentation.
- The fund manager will evaluate the project’s viability and alignment before deciding on funding.
Short Highlights of PM Modi 1 lakh crore RD Scheme
| Scheme Name | PM Modi 1 lakh crore RD Scheme |
| Total Outlay | ₹1 Lakh Crore (over six years) |
| Objective | Catalyze private sector R&D investment in strategic sectors |
| Implementing Body | Dept. of Science & Technology (DST), via ANRF |
| Funding Type | Long-term loans (low/nil interest), equity, Deep-Tech Fund of Funds |
| Exclusions | No grants or short-term loans provided |
| Focus Areas | AI, semiconductors, quantum tech, clean energy, space tech, advanced materials, etc. |
| Vision | Strengthen India’s innovation ecosystem and achieve technological self-reliance |
Eligibility Criteria
- Private sector entities, including MSMEs and startups, are eligible to apply.
- Must be in strategic sectors (e.g., AI, semiconductors, clean energy).
- Projects must be at Technology Readiness Levels (TRLs) 4 and above (ready for experimental development, past basic research stage).
- Viable R & D projects with clear outcomes and routine operations are excluded.
Documents Required
- Business Registration Certificate
- Tax Compliance
- Detailed Project Proposal
- Proof of sectoral eligibility
- Industry Contribution Certificate
Focused Sectors
- Advanced Materials & Manufacturing
- Artificial Intelligence (AI)
- Bio-Manufacturing
- Blue Economy
- Digital Communications
- Electronics & Semiconductor Manufacturing
- Emerging Agriculture Technologies
- Energy (Clean Energy)
- Environment & Climate
- Health & Medical Technologies
- Quantum Science & Technology
Funding Mechanism
| Tier | Entity | Role | Funding Mode |
|---|---|---|---|
| Tier 1 (Custodian) | Special Purpose Fund (SPF) (within ANRF) | Manages the ₹1 lakh crore corpus from the government. | Receives government funds (50-year interest-free loan). |
| Tier 2 (Disbursing) | Second-Level Fund Managers (SLFMs) (AIFs, NBFCs, DFIs) | Appraises projects and disburses funds to companies. | Provides long-term, low/nil interest loans or equity. |
| End Beneficiaries | Private Companies & Startups | Execute R&D projects in target sectors. | Receives loans/equity from SLFMs. |
FAQ’s
What is the primary objective of the RDI Scheme Fund?
To boost private sector investment in R&D and promote technological self-reliance in strategic sunrise sectors.
What is the total corpus of the RDI Scheme?
₹1 lakh crore (approximately $12 billion USD).
Which government body is in charge of this scheme?
The Anusandhan National Research Foundation (ANRF), under the Department of Science and Technology (DST).
What are the key focus areas for the RDI fund?
11 areas including AI, Semiconductors, Clean Energy, Bio-Manufacturing, and Quantum Technology.
Can a private company apply for funding directly to the government?
No. Funding is routed exclusively through designated Second-Level Fund Managers (SLFMs).
Who are the Second-Level Fund Managers (SLFMs)?
Professional financial institutions like Alternative Investment Funds (AIFs), Development Finance Institutions (DFIs), and Non-Banking Finance Companies (NBFCs).
What kind of financial support is offered?
Primarily long-term loans at low or nil interest rates; sometimes equity for deep-tech startups.
Are grants or short-term loans available under this scheme?
No, grants and short-term loans are not provided.
What is the required Technology Readiness Level (TRL) for projects?
Funding is typically for projects at Technology Readiness Levels (TRLs) 4 and above.
Khushi Singh
Khushi Singh is a content writer with 3 years of experience in government schemes. She writes simple and helpful articles that guide people to understand and benefit from public welfare programs.