Can look at more safeguards: Ministry on deep tech fund

Science and Technology Minister Jitendra Singh reaffirmed on Wednesday that the safeguards in place to prevent conflicts of interest in the disbursement of the Research, Development and Innovation (RDI) Fund were robust. However, he indicated the government was open to considering additional measures to further strengthen the process following an investigation by The Indian Express.

The report had exposed that 15 out of the 22 private companies chosen for the initial round of funding from the RDI Fund had ties to investment interests held by seven members of the selection panel. Despite the panel members recusing themselves from evaluating their own companies, as per the guidelines, the situation emphasized the necessity for more protective measures within the system.

Singh underscored the importance of maintaining rigorous due diligence and verification processes during a meeting with Secretaries of scientific departments under his charge. He welcomed suggestions from stakeholders and stated that, wherever feasible, additional safeguards could be implemented. The RDI Fund, established last year, aims to provide low-cost long-term loans to private firms engaged in advanced research in sectors such as quantum computing, robotics, space, biotechnology, clean energy, and climate action.

The Fund's corpus is projected to reach Rs 1 lakh crore over six years, with companies eligible to receive up to 50 percent of their project costs in loans. Singh noted that insights gained from the first round of funding would aid in smoother operations in subsequent rounds, and the selection of companies for the second round had already been finalized, though not disclosed.

The ministry acknowledged the importance of balancing speed, responsibility, and stakeholder confidence as private sector participation was a new experience within this public funding framework. Additionally, several more sectors were made eligible for loans from the RDI Fund, following recommendations from an expert committee. Inter-ministerial consultations were conducted to ensure that the RDI Fund framework is inclusive and responsive to the country's strategic requirements.