NEW DELHI, Sept 30, 2026: India's Rs 1 lakh crore (about $12 billion) Research, Development and Innovation (RDI) fund was meant to speed up funding for deep-tech startups. According to a report by The Ken, fund managers say it has slowed funding instead. The full story is paywalled, so this report draws on its opening section and other coverage.

The RDI fund was launched by Prime Minister Narendra Modi in November 2025, after Cabinet approval in July. It is housed within the Anusandhan National Research Foundation (ANRF) and is meant to provide patient capital for research and innovation. It targets sectors with long gestation periods that private venture capital often ignores, such as DNA-based data storage, drone defence and satellites.

Slow approvals and disbursals

The Ken said it spoke to about 12 alternative investment funds (AIFs), managing between $35 million and $1 billion each, and two non-bank lenders. They agreed the fund had delayed funding rather than accelerated it, as did a managing partner at a VC firm with over $1 billion in assets.

  • Of the 162 AIFs and 38 focused research organisations that applied in January, only the Technology Development Board (TDB) and BIRAC have received approval letters. Not one AIF has.

  • Approval is followed by roughly another six months for disbursal. One Bengaluru fund manager said the delay pushes the whole funding cycle back by almost a year, because funds must renegotiate with private investors after approval.

  • The Rs 20,000 crore allocated for FY26 was cut to Rs 3,000 crore, of which ANRF has disbursed only Rs 500 crore, to TDB.

  • TDB has committed Rs 2,192 crore to 22 shortlisted startups. BIRAC has committed Rs 390 crore to eight startups, though it has yet to receive money from ANRF.

  • The Ken also says the heavy focus on the RDI fund has slowed other research funds.

Missed timelines

In May, ANRF CEO Shivkumar Kalyanaraman said the first cheques to approved AIFs would go out "in the coming days," and the process was billed as running at "record speed." Until the first week of August, more than 20 additional fund managers were still due to be appointed.

Government's side

A separate report quoted an official saying proposals are evaluated in eight weeks and money is expected within 12 weeks. Funding is offered at 3% to 4% interest for up to 15 years, without collateral, on condition that intellectual property stays in India and control stays with Indian citizens. That report said 22 projects have been backed so far. I found no direct response from the government to The Ken's findings.