Technology Development Fund (TDF) Scheme

DETAILS Technology Development Fund (TDF) has been established to promote self-reliance in Defence Technology as a part of the 'Make in India' initiative. It is a programme of the Ministry of Defence. This programme is executed by the Defence Research & Development Organisation (DRDO) to meet the requirements of the Tri-Services, Defence Production and DRDO. The Scheme encourages participation of public/private industries, especially MSMEs and startups, so as to create an ecosystem for enhancing cutting-edge technology capability in the defence sector. Objective: The Scheme aims to provide a major fillip to the defence manufacturing sector by encouraging the industry to innovate on defence technologies, in order to place India on the self-reliance trajectory. In addition to providing the grants-in-aid for the development of indigenous technology, the Scheme also provides the industry with various benefits. Vision: Building an ecosystem for enhancing cutting-edge technology capability for defence manufacturing to meet the requirements of Tri-Services, Defence Production and DRDO. Mission: Creating an ecosystem for promoting self-reliance by building indigenous state-of-the-art systems for defence applications. Project Duration: Maximum development period will be four (4) years. Focus Areas: Significant upgradation/ improvements/developments in the existing products/processes/applications. Technology readiness level upgradation from TRL 3 onwards to realization of products as per Tri-Services requirements. Development of futuristic technologies/innovative products which can be useful for defence applications. Import substitution of components whose technologies do not exist in the Indian industry. The scheme will be limited to development of technologies or prototypes of products having potential use for National Defence. BENEFITS Funding Support: The project cost of up to INR 50,00,00,000/- will be considered for funding. The funding may be up to 90% of the total project cost. Industry may work in collaboration with academia or research institutions. The funding will be linked to mutually agreed milestones. Funds will be released either in advance against a bank guarantee of the same amount as collateral, or reimbursement based on the completion of milestones. Subsequent installments will be released on successful completion of milestones. Purpose of Funding Support: Aims to provide financial assistance to startups for prototype development and trials. Proposes to target nascent startups for project requirements inclusive of funding support of up to 20% to the incubators associated with the startup. Option to create partnerships with academia, where the contribution of the academia is up to 40% of the total project effort. ELIGIBILITY Public limited company, a private limited company, a partnership firm, a limited liability partnership, one-person company, sole proprietorship registered as per applicable Indian laws registered in India especially MSMEs and Startups. Startup must be recognized by Department for Promotion of Industry and Internal Trade (DPIIT) as per Government of India (GOI) guidelines. Startup incorporated for less than 3 years from date of submission of application will be considered as nascent startups. Nascent Startup should be incubated at one of the Central/State government assisted incubators. Startup should not have received any grants/grants-in-aid by any government scheme for a similar technology. The startup must be owned and controlled by a Resident Indian citizen with a shareholding of at least 51%.