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RDI Scheme Widened to Cover Advanced Chemicals Technologies

Advanced Chemicals, Petrochemicals and Material Technologies became an eligible funding area under the Rs 1 lakh crore RDI Scheme from 8 October 2026.

By Published · 2 min read
RDI Scheme Widened to Cover Advanced Chemicals Technologies

Why in News

The Government of India made Advanced Chemicals, Petrochemicals and Material Technologies eligible for funding under the Research, Development and Innovation (RDI) Scheme with effect from 8 October 2026, acting through the Department of Science and Technology on a proposal from the Department of Chemicals and Petrochemicals.

The Centre has widened the technology areas that can draw money from the Research, Development and Innovation (RDI) Scheme. Advanced Chemicals, Petrochemicals and Material Technologies have been added as a fresh area eligible for funding, and the addition applies from 8 October 2026.

Who cleared it and who asked for it

The approval was given by the Department of Science and Technology (DST). It acted on a proposal put up by the Department of Chemicals and Petrochemicals (DCPC), which sits under the Ministry of Chemicals and Fertilizers. DCPC had sought that the chemicals and petrochemicals sector be treated as a priority area inside the scheme. Officials expect the step to deepen research work in the sector and to let Indian laboratories and companies build home-grown technologies meant for demanding industrial uses.

The scheme behind the decision

The RDI Scheme was rolled out in November 2025 and carries a corpus of Rs 1 lakh crore. Its design is to pull private capital towards research rather than to spend the money directly: it offers long-tenure loans and refinance on soft terms for projects capable of reshaping an industry. The scheme also wants faster uptake of advanced technology, a stronger showing by Indian industry against foreign competitors, and self-reliance in technology areas treated as critical or newly emerging. At its launch the Prime Minister had spoken of the country building a lively research base quickly, with attention on making research easier to carry out so that a modern innovation ecosystem could take root.

Reaction from the ministry

Union Minister for Chemicals and Fertilizers and for Health and Family Welfare Jagat Prakash Nadda welcomed the sector being brought inside the scheme and called it a landmark for the chemicals and petrochemicals industry. He said the money would give research and innovation the push it had long needed, and would help develop better, cheaper and more efficient ways of making chemicals, petrochemical goods, polymers and products derived from them inside India.

Why an aspirant should note it

The chemicals and petrochemicals industry depends heavily on technology bought from abroad and on costly imported materials. Bringing the sector under a financing window of this size is aimed at cutting that dependence, lifting domestic manufacturing and letting industrial growth be led by technology developed at home.

Important Facts

SchemeResearch, Development and Innovation (RDI) Scheme
New technology areaAdvanced Chemicals, Petrochemicals and Material Technologies
Effective from8 October 2026
Approved byDepartment of Science and Technology (DST)
Proposed byDepartment of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilizers
Scheme launchedNovember 2025
CorpusRs 1 lakh crore
Union MinisterJagat Prakash Nadda, Chemicals and Fertilizers, and Health and Family Welfare
PurposeLong-term financing and refinancing on favourable terms to catalyse private-sector research investment

Exam Point of View

Remember the scheme (Research, Development and Innovation or RDI Scheme), its launch month and year (November 2025), its corpus (Rs 1 lakh crore), the new technology area added (Advanced Chemicals, Petrochemicals and Material Technologies), the date it takes effect (8 October 2026), the department that approved it (DST), the department that proposed it (DCPC) and the minister who welcomed it (Jagat Prakash Nadda).

Practice Questions

Q1.Government SchemesEasy

Under which scheme have Advanced Chemicals, Petrochemicals and Material Technologies been made eligible for funding?

  1. A.Production Linked Incentive Scheme
  2. B.Research, Development and Innovation Scheme
  3. C.Promotion of Research and Innovation in Pharma MedTech Sector
  4. D.National Manufacturing Mission
Show answer
Correct answer: B. Research, Development and Innovation Scheme

The Government of India added Advanced Chemicals, Petrochemicals and Material Technologies as an extra technology area that can draw funding under this scheme, the change applying from 8 October 2026.

Read the full explanation →
Q2.Government SchemesMedium

Which department approved the inclusion of the chemicals and petrochemicals sector under the RDI Scheme?

  1. A.Department of Chemicals and Petrochemicals
  2. B.Department for Promotion of Industry and Internal Trade
  3. C.Department of Science and Technology
  4. D.Department of Scientific and Industrial Research
Show answer
Correct answer: C. Department of Science and Technology

The Department of Chemicals and Petrochemicals is wrong in this context because DCPC was the proposer, not the approving authority: it had sought that chemicals and petrochemicals be treated as a priority area and DST accepted that request.

Read the full explanation →

Frequently Asked Questions

What is the RDI Scheme and how large is its corpus?

The Research, Development and Innovation (RDI) Scheme was launched in November 2025 with a corpus of Rs 1 lakh crore. It offers long-term financing and refinancing on favourable terms so that private firms invest in research, advanced technology adoption and self-reliance in critical and emerging technology areas.

Which new technology area has been added under the RDI Scheme?

Advanced Chemicals, Petrochemicals and Material Technologies. The area became eligible for RDI funding from 8 October 2026 after the Department of Science and Technology accepted a proposal moved by the Department of Chemicals and Petrochemicals.

Which ministry does the Department of Chemicals and Petrochemicals belong to?

It works under the Ministry of Chemicals and Fertilizers. The Union Minister in charge, Jagat Prakash Nadda, who also holds Health and Family Welfare, welcomed the inclusion as an important step for the chemicals and petrochemicals industry.

Sources

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