Govt defends RDI Fund selection process, cites conflict-of-interest safeguards
Technology Development Board (TDB) says project approvals are based on merit, with disclosure and recusal rules in place to ensure transparency in Rs 1 lakh crore innovation fund
The Technology Development Board (TDB) has defended the selection process for projects supported under the Rs one lakh crore Research, Development and Innovation (RDI) Fund, saying strict conflict-of-interest safeguards ensure that funding decisions remain fair, transparent and merit-based.
The clarification came after Science and Technology Minister Jitendra Singh disclosed that seven members of the Investment Committee had personal stakes in 15 companies selected for funding under the RDI Fund.
Approved by the Union Cabinet in July 2025, the RDI Fund aims to promote private-sector investment in deep-tech areas such as artificial intelligence, quantum technologies, biotechnology, robotics, semiconductors and clean energy.
Officials from the Department of Science and Technology (DST) said the implementation guidelines acknowledge that experts assessing advanced technologies may have prior professional or investment associations within the innovation ecosystem. However, such relationships are governed by strict conflict-of-interest provisions under which members must disclose their interests and recuse themselves from discussions and voting wherever a conflict exists.
According to officials, project proposals are assessed by an independent Investment Committee comprising experts from technology, industry and investment sectors. Government officials do not evaluate the technical merit of proposals, while the Member Secretary of the TDB does not have voting rights.
Projects are recommended only after securing a supermajority of votes from eligible committee members before being placed before the TDB Board for final approval, officials said.
The government also clarified that support under the RDI Fund is provided for specific research and technology development projects, rather than companies as entities. The TDB provides soft loans linked to approved projects, with government assistance released only after beneficiaries bring in matching investments from eligible non-government sources.
Addressing concerns over venture capital and angel investments, officials said investments made before submission of a proposal do not influence funding decisions. Investments made after approval are independent commercial decisions and have no role in the evaluation process.
Officials maintained that selection of projects is based on scientific merit, technological innovation and commercial potential. They said the 22 companies chosen in the current funding round are working on strategic deep-tech technologies and that none of the Investment Committee members had a conflict of interest in the projects approved.
