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Research by private firms in the field of pharmaceuticals and medical devices is one among the sunrise sectors that will benefit from the Central government's newly launched Rs 1 lakh crore Research Development and Innovation Fund (RDIF).
The Ministry of Science and Technology, in a draft special financial rules for the fund, which would be under the Anusandhan National Research Foundation Act, 2023, said that Eligible Technology Entities in biotechnology, biomanufacturing, synthetic biology, pharmaceuticals and medical devices sectors, which are considered as the sunrise domains among others, will be considered under the RFID, in order to achieve the Government of India's objective.
Artificial Intelligence and its application to Indian problems, including in agriculture, health and education, deep technology including quantum computing, robotics, and space, energy security and transition, and climate action, and digital economy are some of the other sunrise sectors that would be backed by the Fund. Technologies whose indigenization is important for strategic reasons or for economic security and Atmanirbharta will also be considered for funding, under the scheme.
Eligible Technology Entities, are any legal entity which is engaged in developing RDI-intensive technology (from Technology Readiness Level 4 and above), including companies, partnership firms, limited liability partnership firms engaged in scale-up of RDI-intensive technologies beyond TRL 4. These shall also include start ups.
The objectives of the Fund also include supporting acquisition of technologies which are critical or of high strategic importance, and facilitating establishment of a dedicated deep-tech fund of funds.
The draft special financial rules for the scheme is expected to come into effect from the notification by the Department of Science and Technology, under the ANRF Act, 2023. Applications of these rules are restricted to the financial transaction/governance related to Special Purpose Fund (RDIF) only, established under Section 13(2)(d) of ANRF Act 2023, it added.
The draft sets general rules, rules related to fund flow from RDIF to Second Level Fund Managers (SLFM) through various modes including Alternative Investment Funds (AIFs) and loan financing mode, the timeframe of funding, operational expenditure of RDIF, rules related to budget and accounting, selections and contract management for SLFMs, among others.
India's private sector was responsible for just 36% % of India’s R&D investments (as a percentage of GDP) in 2021. Combined public and private R&D investment totalled just 0.64% of GDP owing to various reasons including the special nature of R&D scaling and RDI intensive technologies, risks affecting innovators and investors, etc., said the government.
The RDIF scheme was launched by Prime Minister Narendra Modi on November 3, aiming to promote a private sector–driven research and development ecosystem in the country, according to news reports.
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