Technology Development Fund (TDF)- Rise in Funding

On June 8, 2022, the limit of funding of innovative defence projects was increased from Rs 10 crore to Rs 50 crore per project, under the Technology Development Fund (TDF). Funding has been enhanced in line with the announcement made in Union Budget 2022-23.

TDF in Union Budget 2022-23

Union Budget 2022-23 has reserved 25% of defence R&D budget for private industry, academia and start-ups, in order to facilitate increased funding for innovative TDF products.

About Technology Development Fund (TDF)

The TDF scheme was started by Defence Research and Development Organisation (DRDO). It supports indigenous development of components, systems, products, and technologies by start-ups and micro, small and medium enterprises (MSMEs). It facilitates up to 90 per cent of the total project cost. It also allows industry to work together with another academia or industry.

Aim of the scheme

The Technology Development Fund scheme was launched with the aim of providing a major boost to defence manufacturing sector by encouraging industry to innovate and develop defence technologies and place India on the self-reliance trajectory. It is aimed at developing products for the military, as well as for other strategic industries like Indian Space Research Organisation (ISRO).

Number of projects sanctioned under scheme

Till now, 56 projects have been sanctioned under the Technology Development Fund scheme.

Significance of the enhanced funding

Enhanced or increased funding would help the industries and start-ups to develop more complex technologies for existing as well as future weapon systems and platforms. With this, potent systems will get developed. Bigger companies, along with MSMEs, would also get support.

How can small defence firms’ approach for funding?

Small defence firms can approach the Ministry of Defence for funding under four projects:

  1. iDEX (Innovation for Defence Excellence)
  2. iDEX Prime
  3. TDF and Make II and
  4. Make III projects.



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