Technology Development Fund (TDF) Scheme

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The Minister of State in the Defence Ministry recently said the Technology Development Fund (TDF) Scheme has so far supported 41 MSMEs and 20 startups.

About Technology Development Fund (TDF) Scheme


  • TDF Scheme has been established to promote self-reliance in defence technology as a part of the 'Make in India' initiative.
  • It is a programme of MoD (Ministry of Defence) executed by the Defence Research and Development Organisation (DRDO) meeting the requirements of Tri-Services, Defence Production and DRDO.
  • The scheme encourages participation of public/private industries especially MSMEs to create an eco-system for enhancing cutting edge technology capability for defence application.
  • It supports indigenous development of components, products, systems and technologies by MSMEs and start-ups.
  • Eligibility:
    • MSMEs and Startups registered in India.
    • Public limited company, private limited company, partnership firms, limited liability partnership, one-person company, sole proprietorship registered as per applicable Indian laws.
    • The industry has to be owned and controlled by an Indian citizen.
    • Industries with foreign investments of 49% or less.
  • Funding Support:
    • The funding will be through provision of grants to the Industry.
    • The project cost of up to INR 10 Cr will be considered for funding, subject to a maximum of 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: Maximum development period will be two years.


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

The DRDO is an agency of the Government of India responsible for the research and development of technology and equipment related to defense and military applications. Established in 1958, DRDO operates under the Ministry of Defence and plays a crucial role in enhancing India's defense capabilities by developing advanced technology, systems, and products.

Source: Defence Ministry: 41 MSMEs, 20 startups supported under Technology Development Fund scheme