Conflict of Interest Charges: Committee Members Had Stakes in RDI Fund Beneficiaries

New Delhi: The committee overseeing the selection of companies for the newly-created Research, Development and Innovation (RDI) fund has been accused of potential conflict of interest, with members having personal stakes in at least 15 companies that were chosen to receive funding, according to information provided by the government in Parliament on Thursday.

In a written answer in the Rajya Sabha, Science and Technology Minister Jitendra Singh listed seven committee members who held personal stakes in these 15 companies, which were among the beneficiaries of the RDI Fund. The RDI Fund is a Rs 1 lakh crore corpus established by the central government last year to promote research and development and innovation in the private sector, particularly in high-priority areas like deep-tech. The fund aims to provide long-term, low-cost financing to private sector entities through second-level fund managers (SLFMs).

The disclosure has raised questions about the transparency and integrity of the selection process. Minister Singh’s response did not specify whether the committee members recused themselves from decisions involving companies they were associated with, nor did it detail the nature of their stakes. The government has not yet commented on whether any remedial measures will be taken.

The RDI Fund is part of the government's broader push to boost innovation and self-reliance in critical technologies. However, the conflict of interest allegations could undermine confidence in the fund's management. Opposition parties are likely to raise the matter in Parliament, demanding a thorough inquiry.