Technology Development Fund

The Technology Development Fund (TDF) is a Ministry of Defence scheme that supports Indian entities in developing indigenous technologies for defence applications. It is executed by the Defence Research and Development Organisation (DRDO) to reduce import dependence and build domestic design and development capability.

Core mandate

TDF converts identified defence technology requirements into development projects that Indian industry can undertake. Its mandate covers technologies required by the Armed Forces, defence production agencies and DRDO.

• It promotes the design and development of indigenous defence systems, subsystems, components and technologies.
• It supports the upgradation of existing products and processes as well as the development of new and futuristic technologies.
• It encourages import substitution and seeks to strengthen India's defence technology and industrial base.

Who receives support

The scheme encourages participation by public and private Indian industries, with particular emphasis on MSMEs and start-ups. Industry may collaborate with academic and research institutions to obtain specialised scientific and technical expertise.

• DRDO provides technical oversight and connects development work with identified defence requirements.
• The scheme enables smaller firms to participate in defence research and development, an area otherwise constrained by high costs and technological risks.

Form of assistance and expected outcome

TDF provides grant-in-aid of up to 90 per cent of the project cost, subject to a ceiling of Rs 50 crore per project. Projects are generally required to be completed within four years.

• Funding is linked to defined development milestones and the delivery of demonstrable technology or prototypes.
• The intended outcome is technology that can progress towards trials, production and eventual induction, rather than research without an identified defence application.