New Delhi, Aug 19 (IANS) The next round of disbursal under the Centre’s Rs 1 lakh crore Research, Development and Innovation (RDI) Fund is likely to begin soon, with officials expecting the process for selected firms to be completed shortly, it was announced at a meeting chaired by Union Minister of State for Science and Technology Dr Jitendra Singh on Wednesday.
Chairing the monthly joint meeting of Science Secretaries, the minister emphasised that while due diligence and verification processes must remain uncompromised, timely release of funds is equally important to enable firms to move forward. He directed officials to adopt faster timelines and make the disbursal process more responsive in the future.
During the meeting, Dr Singh was apprised that the disbursal of RDI funds to some of the selected firms has already been completed, while the process for disbursal to the remaining selected firms is underway and will be completed shortly.
The minister’s direction on RDI processing comes at a time when the government is seeking to create a more competitive and responsive environment for private-sector participation in research and development. During the review, it was informed that the first round of application assessment had already been completed and positive recommendations were ready in respect of eligible applications. The emphasis was on moving the proposals through the remaining stages without avoidable delay, while retaining the scrutiny required before public funds are released.
Dr Singh said that the RDI Fund ‘Conflict of Interest’ policy was protected by stringent safeguards to ensure protection of taxpayers’ money as well as private capital. However, he added that suggestions from stakeholders are most welcome and wherever feasible, more safeguards could be considered.
The minister was apprised that stringent protocols are being followed for both fund disbursement and conflict-of-interest safeguards to ensure transparency, fairness and accountability, given that the RDI Fund involves public money. He was also informed that the framework has robust mechanisms to protect the integrity of investment decisions, with further safeguards being considered wherever required.
He was also apprised that the process for selection and announcement of Second-Level Fund Managers (SLFMs) is underway and is expected to be completed within two weeks or so. These SLFMs will play a key role in identifying deserving companies and supporting them through the RDI Fund framework.
The Minister was also informed that inter-ministerial consultations have been undertaken to make the RDI Fund framework more inclusive and responsive to strategic technology requirements across different sectors. Inputs were sought from various ministries to identify areas of national importance that may require support beyond the initially proposed list of sectors.
Dr Singh noted that the RDI Fund carries a shared responsibility, as 50 per cent of the investment is expected to come from private equity sources, placing an equal responsibility on investment committees to safeguard both taxpayers’ money and private capital.
He also reviewed proposals to widen the scope of strategic areas covered under the RDI framework, based on consultations with Ministries and expert deliberations. The expansion is intended to cover areas of emerging strategic importance while remaining within the framework of the RDI guidelines. The discussions also recognised the rapidly changing nature of technologies, particularly Artificial Intelligence, requiring the innovation-support ecosystem to remain sufficiently flexible to accommodate new and emerging fields.
–IANS
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