FAQs

RDIF requires that IC members make funding decisions without conflicts of interest. Specifically:

If IC members are also investors (LPs) in the fund, or if General Partners (GPs) constitute a significant portion of the IC, the SLFM must ensure that this does not create a conflict of interest when selecting projects for financing.
The guiding principle is that all IC members must act objectively in evaluating and approving RDIF funding, in line with Appendix C.1 of the Implementation Guidelines

RDIF will not be party to any individual investment decision, at any SLFM.

RDIF provides capital to SLFMs, who would then make these funds available to ETEs, including startups. The Notice Inviting Applications is currently open, subject to a submission deadline of 31 January 2025. The schedule that SLFMs will follow in disbursing funds to companies / startups is left to the SLFMs’ discretion.

All queries can be emailed to the email address provided on the RDIF portal at rdifund.anrf.gov.in, which is rdi-fund@anrf.gov.in.

RDIF will issue Notices Inviting Applications periodically, with all announcements published on the RDIF website and official communication channels. NIAs may be released over time, and entities eligible to become Second Level Fund Managers (SLFMs) are free to apply under any subsequent NIA. Applicants who are not selected in a given NIA are also eligible to re-apply under future NIAs.

The evaluation and shortlisting process will be carried out in accordance with Part D, Paragraph 6 of the RDIF Implementation Guidelines. The selection of SLFMs is expected to be completed within approximately 8–12 weeks from the closing date for receipt of applications.

RDIF will release subsequent Notices Inviting Applications in due course.

It is clarified that the specifics of timelines for review and approvals of proposals submitted to SLFMs is left to the SLFMs’ internal practices and judgement. However, it may be noted that SLFMs will be regularly reviewed by RDIF, per Part B Paragraph 8 of the Guidelines.

Eligible Technology Entities could reach out to Second Level Fund Managers in the same way that they currently approach any investor.

The prescribed formats or templates for Annexures A.1 to E.3.
- The prescribed format/ templates are available as Annexures. The same can be downloaded from website - Downloads Tab > NIA Forms and Documents
- Link: NIA_Forms_and_Documents_Web_Copy.pdf
  https://rdifund.anrf.gov.in/images/pdf/NIA_Forms_and_Documents_We b_Copy.pdf
Any additional instructions or file naming conventions required for uploading the documents on the RDIF portal.
- DST has not specified any file naming convention.
- SLFMs may choose to adopt following naming convention for their convenience: <AnnexureNumber/ File> <SLFM_Name> <Date>

DST has not released any additional instructions yet. If DST releases, the same shall be made available on the website.

To ensure consistent evaluation of cost parameters, for applicants seeking RDIF funds as contributions to AIFs, both management fee and carried interest will carry a weightage of 10% each. For applicants seeking RDIF funds as loans (including DFIs, NBFCs, and FROs), both net interest margin and management fee will carry a weightage of 10% each. May also please refer to the Clarifications to NIA.

RDIF’s objective is to drive the development and commercialisation of Indian intellectual property. While financing of acquisition of technologies that are critical or of high strategic importance is permissible, acquisition must occur within the context of a wider project that translates to the development of a product.

Specific terms would be determined at the point where RDIF signs the investment agreement with the SLFM.

RDIF’s objectives are to support Eligible Technology Entities (including corporates) advance RDI-intensive technologies in sunrise domains, as specified in the RDIF Implementation Guidelines.

RDIF funds may only be used by companies / startups, which, inter alia:

Are under the control of resident Indian citizens, as defined in the Department for Promotion of Industry and Internal Trade (DPIIT)’s Consolidated FDI Policy (2020)
Have their registered global headquarters in India. This ensures that global revenues and profit would be consolidated under the Indian-registered entity.

Within RDIF Priority Sectors, funding is limited to projects that advance RDIintensive technologies. RDIF does not fund low-end technology projects or routine R&D activities. This ensures that investments are aligned with the RDIF mandate to support innovation, as specified in Implementation Guidelines Part A, Paragraph 8.

To access RDIF funds, entities must satisfy the criteria outlined in Part A Paragraph 6 of the RDIF Implementation Guidelines.

It is clarified that RDIF does not prescribe deployment timelines or investment milestones post-sanction, beyond those established in the Private Placement Memorandum (for AIFs) and Contribution / Loan Agreements. However, it may be noted that SLFMs will be required to provide periodic reporting on their activity to RDIF.

With reference to Part A Para 14 of the Implementation Guidelines: RDIF will form

Outreach, awareness and information partnerships with Government agencies procuring and adopting technology, particularly in strategic domains, and ensure such agencies are informed about the Indian technological capabilities being advanced by its funding, that may be relevant to their needs and procurement plans.
Such partnerships with public institutions and organisations containing research equipment and other technology derisking facilities which Indian RDI-intensive technology innovators may find essential.

The RDIF Management Team will maintain regular contact with SLFMs and Eligible Technology Entities, helping to communicate and facilitate alignment with RDIF objectives.

Information submitted by applicants in response to the NIA is treated as commercially confidential and is exempt from disclosure under Section 8(1)(d) of the Right to Information Act, 2005. Accordingly, RDIF cannot share lists or details of applicant private companies, including those registered in Mumbai.

FAQs

76. Investment Committee ResponsibilitiesRDIF IG, Appendix C1, Page 27 of 42Is it a conflict if IC members are also investors (LPs) in the fund?Can GPs of the fund constitute 50% the IC?

77. Will an AIF SLFM have to seek RDIF’s approval before making an investment in a startup that it has selected?

78. The expected timeline for opening calls for project proposals under the RDI Scheme?

80. How often does RDIF issue Notices Inviting Applications (NIAs), and can entities re-apply if not selected?

81. How would RDIF evaluate and shortlist Applicants to become SLFMs? What timeframes would RDIF follow for these?

82. When is the next set of applications expected to be considered?

83. What is the typical timeline for review and approval of proposals once they are submitted to SLFMs or the RDI Fund Secretariat?

84. How can applicants engage with or apply through the empanelled Fund Managers?

85. The guideline document or the website does not include the specific templates or formats for these annexures. May we kindly request the following information:

86. For AIF SLFMs, under QCBS Cost criteria: how would the 20% Cost weightage be divided between Management Fee and Carried Interest?

87. Can a company or a startup license intellectual property (IP) from countries other than India, and receive RDIF funding to commercialise it?

88. If an FRO gives a loan to a startup, then what are the terms forMoratorium on interest paymentsMoratorium on principal repaymentsSecurity

90. Some Indian companies and startups are required, e.g. by foreign investors to establish entities in the US, or elsewhere. Would these be eligible to receive RDIF funds?

91. How would RDIF respond to cases where projects occur under sectors in the RDIF Priority List, but constitute routine marketplace models?

92. What eligibility criteria does RDIF prioritise or prescribe for technology startups, to be able to access financing through RDIF-funded SLFMs?

93. Deployment & Fund Close: are there prescribed deployment timelines or investment milestones post-sanction?

94. Mechanisms for enabling or operationalising priority procurement by government departments for RDIF-supported companies need to be clarified to ensure practical implementation.

95. Are there any capacity-building or mentorship programs for startups or fund managers under the RDI Fund to ensure alignment with its objectives?

96. Can we get the list of private companies registered for RDI Fund from Mumbai?