What is Technology Development Fund (TDF) Scheme?

About Technology Development Fund (TDF) Scheme:

• It 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 DRDO to meet the requirements of the Tri-Services, Defence Production, and DRDO.
• The Scheme encourages the 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.
• In addition to providing the grants-in-aid for the development of indigenous technology, the scheme also provides the industry with various benefits.
• Funding Support:
  • The project cost of up to INR 50 crore 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 work involvement of academia cannot exceed 40% of the total project cost.
  • 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.
• Project Duration: The maximum development period will be four (4) years.
• Eligibility:
  • A public limited company, a private limited company, a partnership firm, a limited liability partnership, a one-person company, or a sole proprietorship registered as per applicable Indian laws registered in India especially MSMEs and Startups.
  • The industry must be owned and controlled by a resident Indian citizen.
  • An entity with excess of 49 percentforeign investment will not be eligible.
  • Startups must be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) as per Government of India (GOI) guidelines.
  • Startups incorporated for less than three years from date of submission of application will be considered as nascent startups.
• A nascent Startup should be incubated at one of the Central/State government assisted incubators.
  • Startups 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%.

Q1: What is the Defence Research and Development Organisation (DRDO)?

DRDO is the R&D wing of Ministry of Defence, Govt of India, with a vision to empower India with cutting-edge defence technologies and a mission to achieve self-reliance in critical defence technologies and systems, while equipping our armed forces with state-of-the-art weapon systems and equipment in accordance with requirements laid down by the three Services. DRDO was formed in 1958 by merging the then-existing Technical Development Establishment (TDEs) of the Indian Army and the Directorate of Technical Development and Production (DTDP) with the Defence Science Organisation (DSO).

Source: DRDO approves seven technologies for development by private sector