RDI Funding via TDB: Application Process, 50% Co-Funding Rule & Mandatory Documents

Published by SCPL | Updated: July 2026 | Reading Time: 6 minutes

What is the RDI Fund? India’s ₹1 Lakh Crore R&D Scheme Explained

India’s Research, Development and Innovation (RDI) Fund — worth ₹1 lakh crore — is the country’s largest-ever commitment to private-sector R&D. Approved by the Union Cabinet on 1 July 2025 and formally launched by the Prime Minister at ESTIC 2025 on 3 November 2025, the RDI scheme aims to catalyse innovation in sunrise and strategic sectors as part of the Viksit Bharat 2047 vision.

The Department of Science and Technology (DST) is the nodal body overseeing the scheme. The Technology Development Board (TDB) is one of the first designated Second-Level Fund Managers (SLFMs) — meaning companies apply directly to TDB for RDIF financing.

If your company is working at TRL 4 or above in any RDI priority sector, this guide walks you through everything you need — the eligibility criteria, the application process, the critical 50% co-funding rule, and the mandatory financial documents that determine whether your application succeeds or stalls.

How Does the RDI Fund Work? The Two-Tier Mechanism

The RDI Scheme channels public money to private companies through a structured two-tier system:

• Tier 1 — Special Purpose Fund (SPF): The Government provides interest-free, 50-year loans to the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister.
• Tier 2 — Second-Level Fund Managers (SLFMs): ANRF disburses concessional loans to SLFMs like TDB and BIRAC, who evaluate and finance eligible private companies and startups.

This means TDB acts as the gateway for most private sector applicants. Your application, due diligence, and sanction all happen at the TDB level.

RDI Priority Sectors include:

• Energy Security, Transition & Climate Action
• Deep Technology — Quantum Computing, Robotics & Space
• Artificial Intelligence for Indian Applications
• Biotechnology, Biomanufacturing & Medical Technologies
• Digital Economy & Digital Agriculture

Who Can Apply for RDI Funding via TDB?

To be eligible for RDIF financing through TDB, your entity must meet all of the following:

• Registered in India under the Companies Act 2013, LLP Act 2008, or Indian Partnership Act 1932
• Engaged in RDI-intensive technology at Technology Readiness Level (TRL) 4 and above
• Under the control of resident Indian citizens as per DPIIT’s Consolidated FDI Policy (2020)
• Registered global headquarters in India — global revenues and profits must consolidate under the Indian entity
• DPIIT-recognised startups under Notification G.S.R. 127(E) dated 19 February 2019 are also eligible

Modes of Funding Available via TDB Under RDIF

Important: The RDI scheme does not provide grants or short-term loans. Companies expecting grant-based support should explore other DST programmes.

The 50% Co-Funding Rule: What Every Applicant Must Understand

This is the single most important condition of the RDI scheme — and the one most applicants underestimate.

TDB funds a maximum of 50% of your total assessed project cost. The remaining 50% must come from you.

There are no exceptions to this as a starting point. Regardless of how innovative your technology is or how strong your project proposal looks, TDB will not sanction funding unless you can demonstrate that your matching 50% is real, committed, and documented.

Where Can Your 50% Come From?

• Own funds — promoter contribution, retained earnings, or internal accruals
• Private investors — angel investors, venture capital, or strategic investors with committed funds
• Commercial bank loans — term loans from banks or NBFCs (separate from the TDB loan)
• Other government grants — provided they are not from the same RDI pool

What TDB Will Verify During Due Diligence

A Practical Example

If your total R&D project cost is ₹10 crore:

• TDB can sanction a maximum of ₹5 crore
• You must prove the remaining ₹5 crore is secured or has a credible, documented plan
• An application that cannot satisfactorily answer the co-funding question will stall at due diligence — regardless of technical merit

Can the 50% Rule Be Relaxed?

Yes — but only in exceptional cases or for projects in highly strategic sectors, and only with the approval of the Empowered Group of Secretaries (EGoS). Do not plan around this relaxation. Treat it as a bonus if it applies; plan for the full 50% from day one.

Step-by-Step: How to Apply for RDI Funding Through TDB

1. Verify Eligibility — Check your sector, TRL level, and incorporation against the updated RDI Implementation Guidelines at rdifund.anrf.gov.in.
2. Register on the TDB Portal — Create your entity profile at e-techcom.tdb.gov.in/rdif-registration.php.
3. Prepare Your Project Proposal — Include your technology description, current TRL, development roadmap, milestone plan, total project cost, and your 50% co-funding plan with supporting evidence.
4. Compile and Submit Financial Documents — Submit your audited financials, loan outstanding statement, CIBIL reports, and co-funding evidence alongside the proposal.
5. TDB Due Diligence — TDB evaluates both technical and financial viability. Expect detailed scrutiny of your existing debt position, credit history, and matching fund arrangement.
6. Sanction & Loan Agreement — On approval, a funding agreement is signed specifying loan amount, interest rate (3–4%), tenure (12–15 years), moratorium period, and milestone-linked disbursement schedule.
7. Disbursement in Tranches — Funds are released in tranches tied to verified milestone completion.
8. Repayment — Repayment of principal and interest begins after the moratorium period ends.

Mandatory Financial Documents for RDI Funding Application

Document 1: Loan Outstanding Details (Including Rescheduled Loans & Defaults)

TDB requires a complete statement of all existing loan obligations of your company. This must cover:

• All current outstanding loans from banks, NBFCs, DFIs, or any other lender — with current balances
• Rescheduled loans — any facility whose terms were restructured or renegotiated, with reasons and revised repayment schedule
• Defaults — any delayed or missed repayment, even if later regularised, with dates and amounts
• Security or collateral provided against each facility
• Sanctioned vs. disbursed amounts for every facility

Why this matters: TDB is providing long-tenure, low-interest public funds. Before adding a new concessional loan to your balance sheet, it must assess your existing debt burden in full. Any undisclosed default or rescheduling discovered during or after due diligence can result in rejection or cancellation of sanction.

What to submit: A tabular statement certified by your Company Secretary or Statutory Auditor, covering all lenders with current outstanding balances as of the application date. Attach a brief explanatory note for any rescheduled loan or default, along with supporting bank correspondence.

Document 2: CIBIL Report (Credit Information Report)

A current CIBIL report — for both the company and the individual promoters/directors — is mandatory. TDB reviews:

• Credit score of the company and key promoters
• Full repayment track record across all credit facilities
• Any NPA (Non-Performing Asset) classification by lenders
• Write-offs and one-time settlements on record
• Enquiry history — a high frequency of credit enquiries in a short window is a flag
• Director-level credit history — especially important for early-stage companies

Pro Tip: Pull your CIBIL report at least 4 to 6 weeks before applying. Dispute any errors or outdated entries with CIBIL before submission. If past defaults have been regularised, prepare an explanatory note with bank confirmation letters. Proactive disclosure with context is always better than a surprise discovery during due diligence.

RDI Funding Application Checklist

Frequently Asked Questions: RDI Funding via TDB

Can a startup apply for RDI funding through TDB?

Yes. DPIIT-recognised startups are explicitly eligible, provided they are registered in India, working at TRL 4 or above, and controlled by resident Indian citizens.

Is collateral required for the TDB loan under RDIF?

No. TDB offers collateral-free loans under the RDI scheme.

What happens if my CIBIL score is low?

A low score does not automatically disqualify you, but it will be scrutinised. You should be prepared to explain the reasons, provide context, and show evidence of regularisation where applicable.

Can I use an existing bank loan as part of my 50% co-funding?

Yes, provided you have a valid sanction letter and the loan is genuinely available for the project.

Does TDB fund 100% in exceptional cases?

The 50% ceiling can be relaxed by the EGoS in exceptional or highly strategic cases. It is not a standard provision and should not be assumed.

Why Companies Fail at TDB Due Diligence — And How to Avoid It

The RDI Fund is a once-in-a-generation opportunity for Indian companies to access patient, low-cost capital for genuine innovation. The most common reasons applications stall or get rejected are:

• Incomplete or uncertified Loan Outstanding Statement
• CIBIL discrepancies that contradict declared loan positions
• Vague or unsubstantiated co-funding plans
• Failure to disclose past defaults or rescheduled loans

None of these are fatal if you prepare in advance. Getting your financial documentation right before you apply is the single biggest factor in determining whether your sanction happens in weeks or drags on for months.

Need Help With Your RDI Funding Application?

At SCPL, we assist companies across sectors with end-to-end RDI funding applications — from eligibility assessment and TRL mapping to financial document preparation, co-funding structuring, and full liaison with TDB.

Contact Us Today → Find out if your company qualifies and how quickly you can be application-ready.

Source: Technology Development Board — tdb.gov.in/rdi_slfm | RDI Fund Official Website — rdifund.anrf.gov.in | Last Verified: July 2026