New Delhi: Senior officials of the Ministry of Science and Technology on Friday clarified that the deep-tech firms selected for the Research, Development and Innovation (RDI) Fund were chosen without violating conflict-of-interest guidelines, amid reports claiming that multiple firms had ties to several selection panel members.
The RDI fund, with a corpus of Rs 1 lakh crore, was created in 2025 by the government to provide low-cost, long-term loans to private companies involved in advanced research and innovation in priority deep-tech sectors such as artificial intelligence, quantum technology, and space science.
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The development came after reports emerged alleging a conflict of interest in the disbursement of funds to companies, as many of the firms chosen to get the loan had ties to several members of the selection panel.
This panel is known as the Investment Committee of the Technology Development Board (TDB), a statutory body under the ministry, established in 1996 to help start-ups and companies engaged in indigenous technology with financing and support during the commercialisation stage.
The committee has 11 members from the private sector and one non-voting government representative.
During a press conference, TDB Secretary Rajesh Kumar Pathak defended the composition of the selection panel and said there is a mechanism to check the conflict of interest.
"The (RDI implementation) guidelines explicitly say that conflict of interest in this situation cannot be avoided, as experts would have some investments directly or through the funds. That is why there is a policy to manage the conflict of interest," he said.
The guidelines mandate disclosure of interests, structured decision-making processes and recusal wherever a potential conflict arises, ensuring that technical expertise is retained while safeguarding the integrity of funding decisions, according to Pathak.
"Members who declare a conflict of interest neither participate in discussions nor vote on the proposal concerned. Also, the decision (for choosing the recipient of the loan) is taken by the committee's super-majority," he said.
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Pathak highlighted that the loan is given for specific research and technology development projects, and not as financial support to companies as entities.
Prior investments made by venture capital funds or angel investor networks in a company which has applied for the loan have no bearing on the appraisal process.
"Likewise, if a private investor subsequently chooses to invest in a project after it has successfully undergone technical evaluation and approval, such investment represents an independent commercial decision and does not influence the appraisal process undertaken by the government," said Pathak.
He added that the evaluation framework therefore focuses exclusively on the scientific merit, technological innovation, and innovation potential of the project under consideration.
