Through its Technology Development Fund (TDF) the Ministry of Defence has approved more than Rs 300 crore to establish an ecosystem to boost capability in emerging technology and ‘Aatmanirbharta’ in Defence announced on Thursday. TDF is a Programme launched by the Ministry of Defence (MoD) but implemented through the Defence Research and Development Organization (DRDO). Its main goal is to foster self-sufficiency in Defence technology by supporting innovation and invention in India.
Vision and Mission of TDF
The TDF has drawn a clear-cut vision of a technologically self-sufficient India in the realm of Defence. This ensures that innovation, research, and development are achieved to develop technological solutions that improve national security. The TDF aims to facilitate funding for startups, MSMEs, and academic institutions. Supporting indigenous technology development aligns with the ‘Make in India’ policy and bolsters India’s Defence industrial base.
Funding and Duration
The scheme applies to both public and private sectors, with an emphasis on reaching out to MSMEs and startups. Educational and scientific establishments are also allowed to join the program. The TDF makes available grants-in-aid for the promotion of home-grown technologies for indigenous development. It focuses on any project that costs up to INR 10 crore, where it can contribute up to 90% of the overall project cost. Normally, the project duration of the development phase is two years. Special emphasis is placed on technologies or prototypes having possible applications to the armed services.
Benefits to Industry and Startups
Shared ownership of Intellectual Property Rights (IPR) with DRDO. Chances for the sales by becoming subcontractors of first-tier contractors. Licensing of developed products/technologies for commercial returns. Exports and spin-offs from technologies that have both civil and military applications. Startups affiliated with incubators are eligible for funding support of up to 20%. Capital support for prototypes and testing. Academic collaboration is preferred for up to 40% of the project cost part.
Strategic Goal and Transformation of the Nation
The TDF’s strategic goal is to place India on the path of attaining its strategic goal and transforming the nation into a Defence technology powerhouse. In the capacity of supporting start-ups, MSMEs, and knowledge institutions, it plays a huge role in the ‘Make in India’ initiative for Defence manufacturing.
Eligibility Criteria for TDF Funding
The requirements for funding in the Technology Development Fund (TDF) differ from one TDF scheme to another. The startup should be registered with DPIIT which is the Department for Promotion of Industry and Internal Trade. Although early-stage startups incorporated less than 3 years from the date of application submission are highly encouraged, all startups are welcome to apply. The startup should not have availed any grants or grant-in-aid for similar technology from any government scheme.
Some Successful Projects Supported by TDF Funding
The TDF has backed several important projects in various fields of technology. TDF funding helped the AbilityOne program to advance in improving a contemporary system for information management ahead of schedule by exiting a plan of two years. The TDF helped in improving the efficiency of information exchange processes between different components of the Department of Homeland Security (DHS).
The TDF was useful in addressing the implementation of a zero-trust security model at ED, thereby improving the security of networks and data. TDF investments-built network cybersecurity enhancements at NASA, which enhanced agency missions. The TDF supported the digital transformation and customized prioritization to optimize the benefits for veterans and customer services in the Department of Veterans Affairs (VA).
Conclusion
The Technology Development Fund or TDF holds a central position in nurturing innovation and indigenization of Defence technology. By providing support to startups, MSMEs and academic institutions, it plays a huge role in India’s ‘Make in India’ initiative for Defence manufacturing.
