New Delhi, Oct 11 : The Anusandhan National Research Foundation (ANRF), a science funding agency, has approved the establishment of a special purpose fund (SPF) to encourage the private sector to scale up research, development, and innovation (RDI), the government informed on Saturday.

At the first level, an SPF will be established within the Anusandhan ANRF, which will serve as the custodian of the Rs 1 lakh crore corpus, stated the Ministry of Science and Technology.

The fund will not directly invest in industries and startups but will channel capital to second-level fund managers, who can be Alternative Investment Funds (AIF), Development Finance Institutions (DFI), Non-banking Finance Companies (NBFCs), among others.

Further, the foundation also approved the implementation guidelines and governance framework of the government's Rs 1 lakh crore Research, Development and Innovation (RDI) fund.

These implementation guidelines and the special financial rules will lay the foundation for efficient governance and seamless execution of the scheme, setting the momentum for greater private sector participation, leading to long-term innovation-driven growth, the Ministry said.

The implementation guidelines and Special Financial Rules were prepared by the Department of Science & Technology (DST) through extensive consultation with various stakeholders, the Department of Economic Affairs (DEA) and the Department of Expenditure (DoE).

DST is the nodal ministry of the scheme, and the RDI scheme will operate through a two-tiered funding structure.

Recommendations for support will be made by second-level fund managers through investment committees comprising experts from financial, business, and technical domains operating at arm's length from the government, the Ministry noted.

The government established the ANRF in 2024, through the ANRF Act of 2023, to enable the country to become a global science player.

ANRF aims to forge collaborations among the industry, academia, and government departments and research institutions and create an interface mechanism for participation and contribution of industries and state governments, in addition to the scientific and line ministries.

/IANS