RDIF offers debt: at low rates and extended tenors, focused on TRL 4 onward, including scale-up (commercialisation). RDIF also funds acquisition of technologies of critical or strategic importance (as long as this occurs within the context of a wider project that translates to the development of a product).

For corporates: RDIF-funded SLFMs can drive scale-up. RDIF-funded startups offer derisked, commercialisation-ready technology stacks, to ‘plug in’ to value chains.

RDIF would be open to suggestions of new Sectors being added to the Priority Sector List specified in Paragraph 5 of Part A of the Implementation Guidelines. Such Sectors would require approval from the Executive Council of ANRF and the Empowered Group of Secretaries of the RDIF.

To receive RDIF funds, startups need only comply with (a) the definition of Eligible Technology Entities, as per Part A Paragraph 6 of the RDIF Implementation Guidelines (b) advance RDI-intensive technologies, per Para A Paragraph 8 (c) work in sectors define in Part A Paragraph 5.

RDIF does not wish to be over-prescriptive in the definition of which technologies SLFMs choose to invest in. RDIF will not be party in any way to any individual investment decision made by an SLFM; leaving SLFMs free to make individual investments according to their own best judgement as determined by the Investment Committee and the Management Team, as long as these investments are in accordance with the general principles outlined in the RDIF Implementation Guidelines.

RDIF would only require that such technologies comply with the criteria specific in Part A Paragraph 8 of the RDIF Implementation Guidelines.

RDIF has also uploaded, to its website, an indicative list of technologies. Again, RDIF does not intend this list to be prescriptive.

The Sub-Sectors and Technologies list uploaded to the RDIF website is indicative. RDIF does not intend to be over-prescriptive in types of technology. RDIF funds may be used to support any RDI-intensive technology fitting the general criteria outlined in Paragraph 8 of Part A of the RDIF Implementation Guidelines.

For now, RDIF requires SLFMs to invest all funds received from RDIF only (a) in Eligible Technology Entities (b) advancing RDI-intensive technologies (c) in RDIF Priority Sectors. However, a broad example of investment has been illustrated in the table provided in the answer to Question No 61 of this document.

RDIF will not prescribe specific commercialisation pathways for SLFM-funded Eligible Technology Entities (ETEs). However, all ETEs must adhere to the intellectual property provisions in the RDIF Implementation Guidelines (Part A, Paragraph 6.2).

RDIF would leave this matter to the SLFMs and companies / startups concerned. However, in the event of such a change: if either of the following remains the same at the company / startup, across both SLFMs:

1. the loan proposal’s specification of achieving clearly-defined deliverables and outcomes; thereby defining the same project across SLFMs (for loan funding); or
2. the objectives proposed at the time of raising the funds; thereby comprising the funding round across SLFMs (for equity financing);

RDIF funds cannot finance more than 50% of the project cost or the funding round, across both SLFMs combined.

Companies / startups seeking to access RDIF funding can approach multiple SLFMs for funding. However, for any given (a) project (in the case of loan funding, as defined by the loan proposal’s clearly specified deliverables and outcomes) or (b) funding round (in the case of equity financing, representing the total cost of achieving the stated objectives at the time of fundraising), the funding from RDIF shall not exceed 50% of the project cost or funding round value.

Additionally, upon completion of the project (for loans) or achievement of the stated objectives (for equity financing), companies or startups may be eligible for RDIF support for follow-on projects or objectives. The 50% funding cap shall apply independently at each stage of funding.

RDIF aims to support Eligible Technology Entities, including corporates, in advancing RDI-intensive technologies within sunrise domains, as outlined in the RDIF Implementation Guidelines. Technology Development Board (TDB) has been identified as one of the FROs in RDIF. TDB once appointed as SLFM would be in a position to provide large-ticket loans to established companies working in strategic sectors. This will include providing growth and risk capital to enable technology adoption, innovation, and sectoral competitiveness.

RDIF does not prescribe specific technologies that SLFMs must invest in, leaving investment decisions to the judgement of SLFM. However, any technology in which RDIF funds are deployed must fit the general definition of RDI-intensive technologies provided in Paragraph 8 of Implementation Guidelines Part A.

A general indicative list of sectors, sub-sectors, and types of projects is available on the RDIF website. This list is illustrative, not restrictive, providing examples of the kinds of technology projects eligible for RDIF funding.

RDIF funding can be used for capital-intensive projects, provided they fall within the definitions outlined in Paragraphs 5 and 8 of Part A of the Implementation Guidelines. Additionally, Government of India ministries may propose specific technologies to DST for potential inclusion in RDIF’s investment focus.

It is clarified that ‘any other sector or technology deemed necessary in the public interest’, to be added to RDIF Priority Sectors, would be done so on the recommendation of the Executive Council of ANRF and the approval of the Empowered Group of Secretaries; as specified in Para 5.3. SLFMs are welcome to make recommendations.

It is clarified that RDIF sets no norms related to minimum or maximum annual revenues, stage of venture development, or workforce size to Eligible Technology Entities.

The quantum of funding made available to projects at Eligible Technology Entities would always be determined exclusively by SLFMs, on a case-by-case basis. RDIF funds shall be limited to not more than 50% of the total assessed cost of the project.

RDIF funds shall only be used to support RDI-intensive technologies as defined in the Implementation Guidelines (Part A, Paragraph 8), which (i) are generally based on advances in science and engineering innovation; (ii) typically have high uncertainty (and consequent failure risks) in functionality, adoption, production, standards / architecture; (iii) may entail investment in scientific or engineering R&D before product development. RDIF does not wish to be over-prescriptive here but the broad intent would be monitored by RDIF.

It is clarified that the specifics of evaluation criteria or parameters used by SLFMs to assess the eligibility and potential of Eligible Technology Entities will be left to the SLFMs’ judgement; provided always that SLFMs use RDIF funds in a manner aligned with the RDIF Implementation Guidelines.

FROs may invest in companies or startups in the form of equity, debt, or a combination of both, including optionally convertible debt, in accordance with Part A, Paragraph 4 and Part C, Paragraph 4 of the RDIF Implementation Guidelines.

RDIF does not fund companies and startups directly, which must apply to SLFMs for funding.

RDIF funds will be used only by Eligible Technology Entities which have their global headquarters registered in India, and are under the control of resident Indian citizens. If global Deep Tech startups relocate to India to comply with these conditions, and register their intellectual property in India, RDIF-funded SLFMs may support such entities.

It is clarified that RDIF does not mandate that Eligible Technology Entities must collaborate with academia or public research institutions, although they are free and encouraged to explore such options should they so choose.

At this stage, RDIF has not been prescriptive regarding the exit strategies that SLFMs may adopt for investments financed using RDIF funds. RDIF will not evaluate individual investment decisions; however, it will exercise general oversight over SLFMs as specified in Part B, Paragraph 8, and require SLFMs to comply with the funding guidelines set out in Part C of the RDIF Implementation Guidelines.

RDIF also reserves the right to modify the Implementation Guidelines, including on exit-related matters, based on operational experience and stakeholder feedback.

RDIF would accept those units that the AIF may issue in order to implement its own chosen Mode (Mode 1 / 2 /3) of funding, that it has selected from RDIF’s menu of options.

The choice of Mode is entirely up to the AIF applying to become an SLFM. Accordingly, the AIF, not RDIF, exercises the choice of issuing different classes of units.

AIFs satisfying RDIF eligibility criteria, established by any of these organisations, can apply for RDIF funding.

RDIF would provide funds to SLFMs as Loans or Contributions to AIFs. RDIF would not provide grants or short-term loans.

RDIF will require SLFM activity to conform with Part C Funding Guidelines to be followed by SLFMs of the Implementation Guidelines. This includes transmission of derisking (for example, net interest margins less than or equal to 3% for loan financing, extended tenors, moratoria, etc.)