The Ministry of Defence (MoD) has taken initiatives to promote defence innovations in private industries, particularly MSMEs. The 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 MoD, executed by DRDO meeting the requirements of Tri-Services, Defence Production and DRDO. Under this scheme, the industries will be involved in development activities in high-end technical areas to accelerate the production process without any burden of R&D cost. Even industries can get advance of a typical project cost of Rs 10 crore to meet the project requirements. The TDF released by DRDO in September 2016 is bound to encourage and enhance R&D activities in private industries.

            The scheme encourages participation of public/private industries especially MSMEs so as to create an eco-system for enhancing cutting edge technology capability for defence application. The TDF programme will cover the following technology development in terms of:

  • Significant upgradation/ improvements/ further developments in the existing products/process/ application etc.
  • Technology Readiness Level (TRL) of up-gradation from TRL3 onwards to realization of products as per Tri-Services requirements.
  • Development of futuristic technologies/innovative products which can be useful for the defence applications.
  • Import substitution of components whose technologies does not exist with the Indian industry.

            The scheme will be limited to development of technologies or prototype of product having potential use for the Services and typical development period of two years. The scheme will cover funding through provision of grants to industry that may work in collaboration with the academia or research institutions to carry out innovation, research and development. In cases where academia or research institutions are involved, their work involvement cannot exceed 40% of the total efforts required.

Road Map

The requirements will be projected on DRDO website through a process as defined in the Standard Operating Procedure (SOP) document. Prospective developers may submit their proposals against the requirement through the online system. The selection of the developer will be done as per the laid down procedures, detailed criteria is given in the SOP. Only Indian vendors including Association of Persons (AoP) as detailed in the SOP are eligible for participation. The projects will be progressed through stages as under:-

A detailed standing operating procedures has been made public which lays out selection criteria for Indian companies wishing to apply for the funds. Such chosen entities will be referred to as Development Agencies (DAs). The detail including the below mentioned topics available at:  https://rac.gov.in/ dtdfs/pages/download.php

  • Standard Operating Procedure (SOP) for utilising Technology Development Fund
  • Guidelines for Short-Listing of Indian Vendors for Issue of Expression of Interest (EoI) for TDF
  • Cases And For Formation of Association of Persons (I.E. Consortium)
  • Intellectual Property Rights of Government in TDF Projects
  • Project Definition Document (PDD): An Illustrative Format
  • Expression of Interest (EOI): An Illustrative Format
  • Illustrative Evaluation Criteria & Sub-Criteria
  • Detailed Project Report (DPR): An Illustrative list of DPR Elements.

The Programme

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 MoD (Ministry of Defence) executed by DRDO meeting the requirements of Tri-Services, Defence Production and DRDO. Under the scheme the following projects have been approved:-

  • Development of Light Weight Bullet Proof Material - Larsen & Toubro Ltd. Amrita University
  • Development of ARINC 818 based Video Conversion & Switching Board - Samtel Avionics Ltd. and Logic Fruit Technologies Pvt. Ltd.
  • Indigenous Design & Development of Composite Material Sea Pumps -Under Process

Presently six projects have been identified for the Technology Development Fund (TDF) plan, in which the government will fund the development of technologies or a prototype by selected companies that has to be completed within two years.

The DRDO Academia partnership is being pursued in project mode through four research boards in Armaments, Aero, Naval and Life sciences domains. They have signed MoUs with IITs for collaborative research, with various Universities and institutions.

List of Upcoming Projects

  • Course Correction Fuze for Artillery
  • Indigenized Inertial Navigation system (INS) for guns
  • Improved reinforced 155mm shell for ATAGS
  • 5Drop Tanks of MiG-23/27 aircraft, as Gliding Aerial
  • Burner Rings for M-53-O2 Aero Engine
  • Universal Green Load Bank
  • Standalone Miniaturized Telemetry Projects
  • Development of Double Sided Modular linear induction motor for higher kinetic energy
  • Water Soluble Cartridge Kit (Along with Bottle and Arm Kit)
  • Development of Multi-Platform Multi-Sensor Data Fusion Engine (MPMSDF)
  • Development of Microwave 500w CW linear power amplifier
  • Magnetic signature emulator/emitter/duplicator (MSE/MSD) to counter magnetic inful mines for both passive as well as active.
  • Funding Support Mechanism
  • The funding will be through provision of grants to industry
  • The project cost up to INR 10 Cr be considered for funding subject to maximum of 90% of the total project cost in general
  • Up to 100% funding may be considered on case to case basis
  • Industry may work in collaboration with academia or research institutions
  • The work involvement of academia cannot exceed 40% of the total projects cost
  • The funding is linked with Milestones
  • Fund to release either advance against the bank guarantee of the same amount as collateral or reimbursement basis on completion of Mile-stone
  • Subsequent installments will be released on successful completion of Milestone

Benefits to Industry

  • Successful development would result in the Development Agency (ies) jointly owning the IPR along with DRDO
  • Eligible for selling directly to Government through IDDM (Make) category
  • Selling to primes as sub-contractor
  • Licensing the product to another entity
  • Export to the friendly nations
  • Pursuing direct selling in the private market-place for the development of dual use technology and Spin-Offs

Interested companies may contact for new projects and other details:-

Defence Research and Development Organisation (DRDO)

Tel No. 011-23007645, 23007507

Email: hkgupta@hqr.drdo.in

Global Innovation & Technology Alliance (GITA)

Tel No. 011-42888009

Email: nilesh.patel@gita.org.in

Tel No.: 011-42888004

Email: deepanwita.mukhejee@gita.org.in

[Issue: 1, January-February 2018]

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