Centre Launches Collateral-Free Financing Scheme to Boost Indigenous Technology in Space and Nuclear Sectors
New Delhi, February 4, 2026: In a significant move to promote indigenous technology development and commercialization in sectors traditionally dominated by the public domain, the Ministry of Science and Technology has unveiled a new long-term financing scheme aimed at private enterprises. This initiative targets strategic fields such as space and nuclear technology, offering concessional interest rates ranging from 2 to 4 percent with loan tenures extending up to 15 years.
The announcement came through the first Open Call of the Technology Development Board (TDB), functioning under the Research, Development and Innovation (RDI) Fund of the Anusandhan National Research Foundation (ANRF). Speaking at the launch, Union Minister Dr. Jitendra Singh described the scheme as a “rare and significant departure” from traditional government funding models, which often limited direct financial support to innovative private sector ventures.
The RDI Fund: A Game-Changer for Private Sector Innovation
The RDI Fund, boasting a substantial corpus of Rs 1 lakh crore, is designed to provide accessible, long-term capital to private enterprises pioneering cutting-edge technological solutions. The fund incorporates a unique financing structure that eases the capital acquisition process for technology developers while enforcing financial discipline to ensure efficient use of resources.
Dr. Singh highlighted that, historically, government interventions in technology development primarily involved philanthropy or Corporate Social Responsibility (CSR)-centric investments, with limited direct financial backing for private innovations. The RDI Fund aims to bridge this gap by enabling private entities to bring advanced technologies to scale, especially in strategic sectors like space and nuclear technology which have recently opened up to private participation.
Features of the Financing Scheme
A key highlight of the initiative is its collateral-free financing offering, which eliminates the need for personal or corporate guarantees. This aspect significantly lowers the entry barriers for private firms keen on developing indigenous technologies. Proposals for funding will undergo rigorous evaluation based on scientific, technological, financial, and commercial merit. Importantly, the scheme stipulates strict timelines for appraisal and fund disbursement to expedite project progression.
Unlike traditional grant programs, this scheme does not offer grant funding but focuses on sustainable commercial deployment of technologies. It provides affordable, long-term loans and equity-linked options to share risk and encourage responsible commercialization, thereby balancing innovation support with oversight.
Encouraging Early Response from Private Sector
Reflecting on the response to the inaugural Open Call, Dr. Singh noted that nearly 191 proposals were submitted, with a significant majority originating from private companies. This enthusiastic participation signals growing confidence within the private sector regarding the government’s commitment to fostering an innovation-driven economy.
He emphasized the importance of ensuring that applications align with the scheme’s core objectives and that funds are judiciously used for genuine technology development and scaling efforts.
Background and Future Outlook
The RDI Fund was approved by the Union Cabinet in July 2025 and officially launched by Prime Minister Narendra Modi in November 2025. It forms a key component of the government’s broader long-term vision to bolster India’s indigenous technological capabilities and strengthen its innovation-led economic framework.
With this pioneering funding mechanism, the Centre hopes to catalyze a transformative shift wherein private enterprises play a central role in strategic technology sectors, augmenting India’s stature as a global innovation hub.
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