Five Startups Secure Initial Funding Under Government’s RDI Programme

The Government of India has begun disbursing funds under its INR 1 lakh crore Research, Development and Innovation (RDI) Scheme, with five deep tech startups becoming the first beneficiaries. 

The Technology Development Board (TDB) on May 13 signed initial agreements and released the first tranche of funding, marking an early milestone for the programme aimed at supporting private sector innovation.

The first cohort includes Dhruva Space, Endure Air Systems, ETRNL Energy, Noccarc Robotics and IISTEM Research. At a ceremony held in New Delhi, Union Minister for Science and Technology Jitendra Singh initiated a live electronic transfer of INR 50 crore to Bengaluru-based IISTEM Research.

Officials described the move as a significant step in addressing a long-standing funding gap faced by Indian startups working on advanced technologies. The scheme is designed to support companies at the prototype-to-product stage, where access to capital has often been limited.

Approved in July 2025 and launched in November the same year, the RDI Scheme aims to deploy INR 1 lakh crore over six years. It targets private enterprises working in emerging and strategic sectors, with INR 20,000 crore earmarked for FY 2025-26. The fund operates under the Anusandhan National Research Foundation, with TDB and BIRAC acting as second-level fund managers.

Unlike traditional grants, the scheme offers funding through low-interest loans, equity participation, or a mix of both. Loans are priced between 3% and 4% with repayment periods of up to 15 years. According to TDB Secretary Rajesh Kumar Pathak, the first call for proposals received 124 applications worth over INR 25,000 crore.

Among the selected companies, Dhruva Space secured INR 105 crore for a satellite platform project, while Endure Air Systems is developing an unmanned helicopter for logistics and defence use. ETRNL Energy is working on advanced lithium-ion battery cells, and Noccarc Robotics is building a portable ICU-grade life support system.

The scheme is structured as a revolving fund, allowing repayments and returns to be reinvested into future projects. Authorities expect the initiative to attract additional private investment and strengthen India’s deep tech ecosystem in the coming years.