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Technology Development Fund (TDF) scheme

Context:

Recently, the Union Raksha Rajya Mantri informed Lok Sabha that 16 defence technologies have been successfully developed/realised under the Technology Development Fund (TDF) scheme.

Relevance:

GS II: Government Policies and Interventions

Technology Development Fund (TDF) Scheme: Empowering Indigenous Defence Technologies

Initiative Overview:
  • The Technology Development Fund (TDF) scheme is a flagship program led by the Ministry of Defence and executed by the Defence Research and Development Organisation (DRDO) as part of the ‘Make in India’ initiative.
Objectives:
  • Grant in Aid:
    • Provide financial support to Indian industries, including MSMEs and Start-ups, as well as academic and scientific institutions.
    • Focus on the development of Defence and dual-use technologies currently unavailable in the Indian defence industry.
  • Engagement with Private Industries:
    • Cultivate a culture of Design & Development of Military Technology, especially in private industries, with a focus on MSMEs and Start-ups.
  • Niche Technologies:
    • Emphasize Research, Design & Development of niche technologies, particularly those being developed for the first time in the country.
  • Collaborative Ecosystem:
    • Create a collaborative platform involving the Armed Forces, research organizations, academia, qualifying/certifying agencies, and private sector entities.
  • Prototype Development:
    • Support futuristic technologies by providing funding for Proof of Concept, transforming them into prototypes.
Funding Support:
  • Grant Provision:
    • Funding through grants to the industry.
    • Consideration of project costs up to INR 10 Cr for funding, up to a maximum of 90% of the total project cost.
  • Collaboration Dynamics:
    • Industries allowed to collaborate with academia or research institutions.
    • Academic involvement capped at 40% of the total project cost.
Project Duration:
  • Timeframe:
    • Maximum development period set at two years.

February 2024
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