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Economy and Finance

Economy and Finance

Technology Development Fund (TDF)

14 Jan 2024 Zinkpot 227
  1. The Technology Development Fund (TDF) is a flagship program of the Ministry of Defence executed by the Defence Research and Development Organization (DRDO) under the 'Make in India' initiative. 
  2. The scheme aims to promote self-reliance in defense technology and has several features that benefit both the defense sector and the broader technology ecosystem in India. Some of the key features include:
    • Objectives: Provide Grant-in-Aid to Indian industries, including MSMEs and startups, as well as academic and scientific institutions for the development of defense and dual-use technologies that are currently not available in the Indian defense Industry.
      • Focus on research, design, and development of niche technologies that are being developed for the first time in the country.
      • Create a bridge between the Armed Forces, research organizations, academia, and qualifying/certifying agencies with private sector entities.
      • Support the futuristic technologies by having a Proof of Concept and converting them into prototypes.
    • Eligibility: The scheme is open to public and private industries, especially Micro, Small, and Medium Enterprises (MSMEs) and startups, to enhance the defense manufacturing sector and foster self-reliance in defense production.
    • Funding: The TDF scheme has a total budget allocation of ₹260 crores, which has been used to support 41 MSMEs and 20 startups through funding and technical expertise.
    • Intellectual Property Rights (IPR): Successful development enables development agencies to jointly own the IPR along with the DRDO, ensuring that the technology developed is owned by India.
    • Direct Sales to the Government: Eligibility to sell to the government directly via the IDDM (Make) category, which allows for faster adoption of indigenous technologies into the defense sector
    • Export Potential: The TDF scheme is export-friendly, allowing for the potential sale of developed technologies to friendly nations and other countries.
    • Licensing and Collaboration: Licensing a product to a different entity and seeking direct sales in the private marketplace for the development of spin-offs and dual-use technologies, fostering collaboration and innovation across various sectors
    • Transparency and Accountability: The TDF scheme ensures accountability and transparency in the allocation of resources, ensuring that funds are used effectively and for the intended purpose.
  3. The scheme encourages the participation of public and private industries, especially Micro, Small, and Medium Enterprises (MSMEs), and startups to enhance the defense manufacturing sector and foster self-reliance in defense production. The TDF provides project support for MSMEs and startups that demonstrate active interest in technology development. 
  4. The scheme is designed to bring together the Ministry, startups, and MSME sectors to accelerate the upgradation of defense processes and promote innovation in the defense sector. The TDF is a significant step towards making the Indian defense sector more self-sustaining and globally competitive.
  5. The TDF Scheme has so far sanctioned 70 projects amounting to Rs 291.25 crore to various industries and 16 defense technologies have been successfully developed/realized.
     

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