A major controversy has emerged around the Centre’s ambitious ₹1 lakh crore Research, Development and Innovation (RDI) Fund, after an investigation by The Indian Express raised questions about links between companies receiving government-backed financing and members of the panel that selected them.
The RDI Fund was created to increase private-sector participation in research and development, particularly in strategic and emerging areas such as deep technology, artificial intelligence, robotics, space, biotechnology, energy transition and advanced manufacturing. The government has allocated ₹1 lakh crore to the programme over six years.
In its first round through the Technology Development Board (TDB), 22 private companies were approved for a combined ₹2,192 crore in soft loans. The projects have a total estimated cost of about ₹4,744 crore.
However, The Indian Express investigation found that 15 of those 22 companies have investment links to seven members of the selection panel. Those companies collectively received more than ₹1,377 crore, or approximately 62% of the ₹2,192 crore approved in the first round.
The selection panel included private-equity and technology-sector professionals along with a government representative. The firms were selected from 124 applicants, according to the investigation.
Government’s response
The findings have prompted questions about transparency and potential conflicts of interest. However, the Ministry of Science and Technology has rejected the suggestion that the selection process was compromised.
Government officials said the RDI Fund has an institutional framework containing conflict-of-interest safeguards. According to the government’s position, domain experts are not automatically excluded simply because they have industry connections; instead, disclosure and recusal mechanisms are used to manage potential conflicts.
The controversy therefore centres less on whether the companies are technically capable and more on whether the selection process provided sufficient independence and public confidence when government money was being allocated.
Why it matters
The RDI Fund is intended to address one of India’s longstanding problems: the difficulty Indian deep-tech companies face in moving from laboratory research and prototypes to commercial products.
The scheme specifically targets technologies with strategic and economic importance. Its success could help India build domestic capabilities in areas ranging from space and quantum technologies to AI, robotics, healthcare and clean energy.
The current controversy could consequently become an important test of how India balances industry expertise with transparency and conflict-of-interest safeguards when deploying large amounts of public capital.
