A government-backed deep-tech funding programme has come under scrutiny after an investigation found that 22 private companies were approved for ₹2,192 crore in soft loans under the first round of funding.
The companies were selected from 124 applicants by a 12-member Investment Committee of the Technology Development Board (TDB), which operates under the Ministry of Science and Technology. The funding is part of the government’s ₹1 lakh crore Research, Development and Innovation (RDI) Fund, created to promote innovation in sectors such as artificial intelligence, space technology, clean energy, defence, semiconductors, and biotechnology.
15 Companies Linked To Seven Selection Panel Members
According to the report, 15 of the 22 selected companies have investment links with seven members of the committee that evaluated the applications.
These companies reportedly received more than ₹1,377 crore, accounting for nearly 62% of the total funding approved in the first round. The report also states that nine companies had links to the chairman of the Investment Committee, including at least one company in which he reportedly held a personal stake.
Panel Members Deny Any Wrongdoing
The committee members named in the report denied any impropriety, stating that they had disclosed their financial interests in advance and recused themselves from discussions and decisions involving companies with which they had connections.
The Department of Science and Technology also maintained that the projects were selected purely on merit and that conflicted members had no role in evaluating or approving proposals linked to them.
Issue Raised In Parliament
The matter was also raised in Parliament by Congress Rajya Sabha MP Praveen Chakravarty, who questioned whether individuals with commercial interests should serve on committees responsible for allocating public research funds.
He suggested that scientists and academic experts without financial interests could play a larger role in such selection processes, while commercial evaluations could be handled separately by external experts.
Focus On Transparency In Public Funding
The controversy has sparked a wider debate about transparency, governance, and conflict-of-interest safeguards in government-funded innovation programmes. While the government maintains that all procedures were followed and recusal rules were observed, the report has raised questions about whether existing mechanisms are sufficient to ensure complete public confidence in the allocation of taxpayer-funded research support.
Summary
A government deep-tech fund has approved ₹2,192 crore in soft loans for 22 private companies under its first funding round. An investigation found that 15 of the selected companies had investment links to seven members of the selection committee and received over ₹1,377 crore, or nearly 62% of the funding. The panel members denied wrongdoing, saying they disclosed their interests and recused themselves, while the government maintained that all selections were made purely on merit.
