PARLIAMENT QUESTION: OPERATIONALISATION OF DEEP TECH FUND OF FUNDS

1. At a Glance

Deep-Tech Fund of Funds (FoF) is a financing vehicle envisaged under the Research, Development and Innovation (RDI) Scheme of the Ministry of Science & Technology to channel risk-capital into high-TRL deep-tech startups via 2nd-level fund managers [S1][S2].
Total scheme corpus: ₹1 lakh crore over 6 years; FY 2025-26 outlay ₹20,000 crore [S2][S3].
Examinable for Prelims (schemes/agencies) and Mains GS-III (S&T, innovation ecosystem, indigenisation).

11 Feb 2026: Reply tabled in Parliament by MoS S&T detailing operationalisation status of the Deep-Tech FoF under the RDI Scheme [S1].
TDB launched first Call for Proposals on 04 Feb 2026 under the RDI Scheme [S1].
Additional 2nd-Level Fund Manager (SLFM) applications closed 31 Jan 2026; selection in progress [S1].

01 July 2025: Union Cabinet approves RDI Scheme [S1][S2].
03 Nov 2025: Scheme formally launched by the Prime Minister at ESTIC 2025 [S1][S2].
Operational scaffolding put in place via Scheme Implementation Guidelines, Special Financial Rules and Notices Inviting Applications [S1].
Sits within the broader architecture of the Anusandhan National Research Foundation (ANRF Act, 2023), which hosts a Special Purpose Fund (SPF) for RDI disbursal [S2].

Parent Ministry: Ministry of Science & Technology; nodal Dept: DST [S1].
Apex body: ANRF (Anusandhan National Research Foundation) – holds the Special Purpose Fund (SPF) [S2].
Funding architecture: Two-tier — SPF (1st tier) → Second-Level Fund Managers (SLFMs) (2nd tier) → end-beneficiaries [S2].
SLFMs approved on nomination basis: Technology Development Board (TDB) and Biotechnology Industry Research Assistance Council (BIRAC) — ₹2,000 crore each in first iteration [S1][S2].
Eligible SLFM categories: AIFs, DFIs, NBFCs, Focused Research Organisations (FROs) [S2].
Instruments: long-term low-interest unsecured loans, equity to startups, contributions to Deep-Tech FoF [S2].
Targeted TRL: TRL 4 and above [S2].
Corpus: ₹1 lakh crore / 6 years; ₹20,000 crore FY 25-26 [S2].

Economic — Crowds in private R&D capital where India's GERD/GDP (~0.65%) lags OECD norms; aimed at "sunrise" sectors (AI, quantum, biotech, space, semiconductors) [S2].
Scientific / Technological — Bridges the "valley of death" between lab prototype (TRL 4) and commercial product; FoF model de-risks venture capital flowing into deep-tech [S1][S2].
Administrative — Two-tier disbursement insulates ANRF from individual project risk; uses existing institutions (TDB under DST; BIRAC under DBT) rather than creating new vehicles [S1].
Strategic — Supports acquisition of strategically important technologies, aligning with Atmanirbhar Bharat in dual-use/critical tech [S2].
Governance — Special Financial Rules issued to override standard GFR procurement constraints, enabling equity/quasi-equity by a government body [S1].

RDI Scheme approved by Cabinet on 01 July 2025 [S1].
RDI Scheme launched by PM on 03 November 2025 [S1].
Total corpus: ₹1,00,000 crore over 6 years [S2].
Special Purpose Fund is housed under ANRF, not DST directly [S2].
First two SLFMs (nominated): TDB and BIRAC, ₹2,000 crore each [S1].
TDB is under DST; BIRAC is under Department of Biotechnology (DBT) [S1].
Scheme supports projects of TRL 4 and above [S2].
Eligible 2nd-tier managers include AIFs, DFIs, NBFCs and FROs [S2].
Instruments include long-term low-interest loans, equity, and Deep-Tech Fund-of-Funds contributions [S2].
Operational documents: Scheme Implementation Guidelines, Special Financial Rules, NIAs [S1].
TDB issued its first RDI call on 04 February 2026 [S1].
Additional SLFM application window closed 31 January 2026 [S1].

GS-III — Science & Technology; Indigenization; Government schemes; Investment models.
Possible stems:
"The Deep-Tech Fund of Funds under the RDI Scheme marks a shift from grant-based to risk-capital based public R&D financing in India. Discuss." (15 marks)
"Critically examine the two-tier disbursement architecture of the RDI Scheme in catalysing private sector R&D." (10 marks)
"India's deep-tech ambitions require institutional, not just financial, reform. Comment." (10 marks)

ANRF Act, 2023 — parent statutory body for the SPF.
NRF vs erstwhile SERB — institutional restructuring.
Startup India Seed Fund Scheme & SIDBI FoF — comparator equity vehicles.
National Deep Tech Startup Policy (NDTSP) draft — policy backbone.
National Quantum Mission, IndiaAI Mission, Semicon India — sectoral deployment of RDI funds.
GERD / R&D expenditure data (DST R&D Statistics) — macro context.
Technology Readiness Levels (TRL) — DRDO/NASA framework.
BIRAC's BIG, SBIRI schemes — antecedents in biotech innovation funding.

RDI Scheme is not administered solely by DST — operational SPF sits in ANRF.
BIRAC is under DBT, not DST; both are SLFMs but from different departments.
Cabinet approval (Jul 2025) ≠ Launch (Nov 2025); both dates are testable.
FoF is a component of the RDI Scheme, not a standalone scheme.
Aimed at TRL 4+ (translational), not basic research (TRL 1-3).

[S1] PARLIAMENT QUESTION: Operationalisation of Deep Tech Fund of Funds, PIB, Min of S&T, 11 Feb 2026 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2226469 — (tier 1)
[S2] Research, Development and Innovation (RDI) Cell — Department of Science & Technology — https://dst.gov.in/rdi-scheme/research-development-and-innovation-rdi-cell — (tier 1)
[S3] PARLIAMENT QUESTION: RDI Scheme, PIB — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2238347 — (tier 1)