Union Education Minister Dharmendra Pradhan said that creating a ‘fund capital’ of Rs 1 lakh crore with the aim of encouraging research and innovative efforts of the private sector in emerging areas will actually prove to be a ‘game-changing policy’.
Finance Minister Nirmala Sitharaman announced this capital fund while presenting the interim budget for 2024-25. Pradhan, in his reaction after the Finance Minister presented the interim budget in the Lok Sabha, termed this ‘treasury capital’ as ‘transformational’.
Pradhan said, “Research fund capital will be a game changing policy. India’s youth has now reached a level where it has the strength and potential to meet global challenges and needs as well as meet India’s needs. This fund will go a long way in meeting the needs of making India an economic superpower.
He said, “The Prime Minister has shown great interest in innovation and has always laid emphasis on research…It has also been recommended in the new education policy.”
Earlier, while announcing the establishment of the capital fund, Finance Minister Sitharaman said, “A fund capital of Rs 1 lakh crore will be established in which there will be an interest-free loan of 50 years.” This fund capital will be used for long-term financing or re-financing for long periods and will have low or zero interest rates.
The Finance Minister said, “This will encourage the private sector to take up research and innovative initiatives, especially in emerging sectors. We need programs that combine the power of our youth with technology.”