India’s ₹1 Lakh Crore Research, Development and Innovation (RDI) fund, aimed at boosting the deeptech sector, has come under scrutiny after its first major allocation of ₹2,192 crore. An Indian Express report revealed that 15 of the 22 beneficiary companies had investment links with seven members of the 12-member investment committee (IC), raising concerns over conflicts of interest, according to inc42.com.
The 15 companies, including Tejas Networks, Ather Energy, Agnikul Cosmos, Dhruva Space, and BigEndian Semiconductors, received roughly ₹1,377 crore, about 62% of the total approved amount. The IC members stated that their interests were disclosed and they recused themselves where necessary. The government maintained that no conflict-of-interest rules were violated. Some investors declined to comment, while others have yet to respond, inc42.com reported.
The controversy highlights concerns among deeptech investors and fund managers that the RDI fund’s current structure might disproportionately benefit a select group of well-established players, potentially limiting opportunities for newer startups. The fund was initially seen as a crucial source of patient capital for India’s deeptech ecosystem, which has traditionally struggled to attract such funding, inc42.com noted.
The debate over the RDI fund’s governance and allocation transparency continues as stakeholders call for independent oversight. The government’s investment committee comprises 12 members, with seven linked to the companies funded in the first round, according to the Indian Express report cited by inc42.com.