Indian Govt. has allocated Rs 260 Cr under the TDF Scheme till date

The Indian Government has allocated a total of Rs 260 crore under the TDF Scheme (Technology Development Fund Scheme), since its inception from 2016.

Further, Rs 64.35 crore has been disbursed as a grant-in-aid to industries for development of defence technologies.

Noteworthy, the Government provides support to the private industries especially MSMEs and start-ups through TDF Scheme.

And, as of now a total of 41 MSMEs and 20 start-ups have been supported under the Technology Development Fund Scheme (TDF) Scheme. 

Also, the Scheme has adopted a flexible funding approach for applicants to encourage participation. 

Hence, two types of funding mechanisms available under the scheme are given below:

  • Reimbursement: The DRDO share of project cost is paid in a maximum of five (05) instalments in the form of reimbursement upon successful achievement of milestones.
  • Advance: A staggered approach towards project funding in this scheme is in the form of advance funding subject to a maximum of five (05) “Milestones” of the project. Development Agency (DA) may avail an advance upon producing a Bank Guarantee of the same amount as collateral.

About TDF Scheme

Technology Development Fund Scheme is a program of Ministry of Defence (MoD) executed by DRDO under “Make-in-India” initiative.

The Government has approved TDF Scheme to encourage participation of public/private industries especially MSMEs and start-ups to design and develop various defence technologies indigenously.

A Standard Operating Procedure (SOP) of the scheme has been formulated and approved by Competent Authority in 2016.

The SOP describes about the evaluation and assessment criteria.