Context: The Defence Research and Development Organisation (DRDO) has sanctioned seven new projects for the private sector under the Technology Development Fund scheme.
What is Technology Development Fund (TDF) Scheme?
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.
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
Funding Support:
The project cost of up to INR 50 crorewill 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 instalments 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 an excess of 49 per cent foreign 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 the date of submission of application will be considered nascent startups.
A nascent Startup should be incubated at one of the Central/State government-assisted incubators.
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