Technology Development Fund (TDF) – DRDO

The Technology Development Fund (TDF) is a flagship initiative was launched in September 2016 by the Defence Research and Development Organisation (DRDO) under the Ministry of Defence, Government of India.

The scheme is designed to promote self-reliance in defence technology by supporting Indian industries, startups, and academia in the development of indigenous defence technologies. It primarily aims to bridge the gap between research and commercialization by funding projects that involve design, development, and testing of innovative defence-related solutions.

The TDF provides crucial financial support to micro, small, and medium enterprises (MSMEs), startups, and individual innovators to convert their technology ideas into deployable products for Indian defence forces.

The program focuses on dual-use technologies (military + civilian applications) and aims to encourage public-private partnerships in strategic and high-tech areas.

As of December 2024, the scheme has sanctioned over 79 projects across multiple domains, contributing significantly to India's defence innovation landscape.

Category	Details
Scheme Launched	September 2016
Implementing Agency	Defence Research and Development Organisation (DRDO)
Total Investment Sanctioned	₹334.02 crore
Total Projects Sanctioned	79 projects
Funding Support Per Project	Up to ₹50 crore as grant-in-aid (enhanced from ₹10 crore in 2022)
Grant Coverage	Up to 90% of the total project cost provided as grant-in-aid
Industry Contribution	Minimum 10% of the project cost by the applicant (startup/MSME)
Primary Beneficiaries	MSMEs, Startups, Indian Private Industries, Industry-Academia Consortia
Sectors Covered	Unmanned Aerial Vehicles (UAVs), Artificial Intelligence (AI) and Machine Learning (ML) applications, Advanced Materials, Cybersecurity, Naval Systems, Communication Systems, Space Technologies
Technologies Successfully Developed	27 technologies under 10 projects have been successfully developed under the TDF scheme
DRDO Industry-Academia Centres	15 DRDO Industry Academia Centres of Excellence (DIA-CoEs) established across the country
Monitoring Mechanism	Project Monitoring and Mentoring Group (PMMG) for milestone review and fund release

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Funding Support

Parameter	Details
Funding Coverage	DRDO provides up to 90% of the total project cost as grant-in-aid.
Industry Contribution	The applicant industry/startup must contribute at least 10% of the total project cost from their own resources.
Maximum Grant Limit	Funding support of up to ₹10 crore (INR 100 million) per project.
Minimum Project Size	No strict minimum officially declared, but typically projects below ₹50 lakh are rare because of the complexity and tech requirement.
Type of Funding	Non-repayable grant — it is NOT a loan, NOT an equity investment, and NOT to be returned if project goals are achieved.
Funding Purpose	- Design and development costs- Materials and prototyping- Testing and trials- Certifications and validations- Limited manpower salaries- IP filing costs (if applicable)

What Costs Are Covered?

Funding from TDF can be used for:

• Design and Development: Salaries, consulting costs, design software tools, lab facilities.

• Prototyping: Materials, component manufacturing, assembly costs.

• Testing and Trials: Costs related to field trials, certifications, quality testing.

• IPR and Legal Support: Patent filing, design registration (where applicable).

• Project Management: Costs directly linked to project execution (travel, reports, documentation).

  
  

Note: Overhead costs are capped (typically up to 10%) to ensure major funds are used for technical activities.

Disbursement Mechanism (How Funding Is Released)

Stage	Funding Activity	Details
Advance Payment	On Agreement Signing	25–30% of the sanctioned grant is released as initial advance.
Milestone-Based Releases	After Achieving Pre-Defined Milestones	Funding is disbursed in tranches after the successful completion of milestones outlined in the project proposal.
Monitoring Reviews	Periodic Reviews	Technical review by a Project Monitoring and Mentoring Group (PMMG) decides the release of the next installment.
Final Tranche	After Project Completion and Acceptance	Final 10–20% released after successful demonstration and acceptance of the prototype/system.

Other Non-Financial Support Provided

• Mentoring Support: Technical mentorship through DRDO labs and experts.

• Testing Facilities Access: Help in accessing DRDO or Ministry of Defence laboratories/testing centers.

• Validation & Field Trials: Assistance in organizing field trials with Indian Armed Forces if required.

• Guidance for Scaling Up: Post-PoC assistance in connecting with production agencies or defence procurement.

  
  

Year	Number of Projects Sanctioned	Total Investment Sanctioned (₹ Crore)
2019	81	4,895.86
2020	88	4,031.70
2021	74	19,978.90
2022	39	9,078.91
Total	282	37,985.37

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Eligible Applicants

Category	Eligibility Conditions
Indian Industry (Including MSMEs)	-Must be a company registered in India under the Companies Act. -Should have majority ownership (minimum 51%) held by Indian citizens. -Must be working in the technology development, engineering, or defence manufacturing domain. -MSMEs are especially encouraged.
Startups	- Must be registered with DPIIT (Department for Promotion of Industry and Internal Trade) as a Startup. - Should meet the eligibility under the Startup India framework. - Must be focused on technology innovation and development.
Academic Institutions / R&D Organizations (As Collaborators Only)	- Institutions can partner with the primary industry applicant. - Their contribution cannot exceed 40% of total project effort. - They must be Indian public/private universities or research centers approved by relevant authorities.
Consortia (Industry + Academia)	- An industry-led consortium (with optional academic or R&D partners) can also apply. - The lead applicant must be an eligible Indian industry (MSME/startup/large enterprise).

 

Sector and Technology Eligibility

Aspect	Details
Focus Areas	- Defence technologies- Dual-use technologies (civil + defence applications)
Technology Stage	- Must be beyond the basic research stage. - Should be at Technology Readiness Level (TRL) 3 or higher. (Meaning: idea validated through analytical and experimental proof-of-concept.)
Project Scope	- Should result in a prototype or working model ready for deployment or trials.

Other Key Conditions

Condition	Details
Indian Ownership	Companies must have more than 51% Indian ownership and control.
Single Project Rule	An applicant can undertake only one active project under TDF at a time. (New applications can be filed after completing the first.)
Financial Stability	Applicant must demonstrate basic financial capability to handle the 10% industry share (can include self-certification, audited financials, or bank statements).
Infrastructure Readiness	Applicants must have or plan to have adequate R&D, manufacturing, or prototyping facilities to execute the project.

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When to Apply?

• Rolling Applications: Applications are open throughout the year based on specific needs published by DRDO as Expressions of Interest (EoI).
  

• No Fixed Annual Cycle: New calls (EoIs) are published as and when DRDO identifies technology gaps or requirements.

How to Apply?

Step	Action	Details
1	Identify Relevant EoI	Visit tdf.drdo.gov.in → Go to "Current Opportunities" → Review active Expressions of Interest.
2	Registration/Login	Register your organization/startup on the TDF Portal. Existing users can directly log in.
3	Prepare Proposal	Prepare a Detailed Project Report (DPR) including:- Technical solution- Project execution plan- Commercial viability- Budget breakdown- Company credentials
4	Submit Proposal Online	Submit the complete proposal through the online portal before the specified EoI deadline.
5	Screening & Evaluation	DRDO's Project Monitoring and Mentoring Group (PMMG) reviews the proposal for technical strength and eligibility.
6	Presentation (If Shortlisted)	Shortlisted applicants may be invited for a technical presentation to an expert panel.
7	Agreement Signing	After final selection, the applicant signs a formal Grant Agreement with DRDO.
8	Fund Disbursement & Project Start	Initial funding (25–30%) is released upon agreement signing; milestone-based funding follows thereafter.

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Documents Required for Application:

• Organization Registration Certificate (Companies Act, 1956/2013)

• PAN Card of the Organization

• GST Registration Certificate

• Ownership and Shareholding Details

• Project Proposal (Technical + Financial)

• Audited Financial Statements (last 2 years)

• DPIIT Recognition Certificate (for Startups, if applicable)

• CVs/Resumes of Key Technical Team Members

• Infrastructure Details (Lab/Manufacturing facilities)

Stages & Timelines:

Stage	Description	Expected Time
Step 1: Expression of Interest (EoI) Released	DRDO publishes an EoI based on specific defence technology needs.	(Date specified in EoI)
Step 2: Proposal Submission by Applicant	Applicant submits the online proposal (Detailed Project Report - DPR) via TDF Portal.	Typically within 30–60 days from EoI publication.
Step 3: Initial Screening	Screening for basic eligibility and completeness of the application by TDF Secretariat.	2–3 weeks after EoI closure.
Step 4: Technical Evaluation	Detailed technical evaluation by subject-matter experts.	3–4 weeks after initial screening.
Step 5: Presentation to Expert Committee	Shortlisted applicants are invited to make a technical and financial presentation.	1–2 weeks after evaluation.
Step 6: Empowered Committee Review	Final review and sanction decision by the Empowered Committee chaired by DRDO HQ.	4–6 weeks after presentations.
Step 7: Signing of Agreement	Selected applicants sign a Grant Agreement with DRDO.	Within 2 weeks of sanction approval.
Step 8: Initial Fund Disbursement	First tranche (25–30%) of the grant released after agreement signing.	Within 2–3 weeks of agreement.

Total Expected Timeframe

Overall Time from Submission to First Fund Release | Approx. 4–6 months |

(Depends on complexity of project, number of applications, technical queries raised, etc.)

Summary of Key Milestones

➔ EoI Published ➔ Application Submitted ➔ Initial Screening ➔ Technical Evaluation ➔ Presentation ➔ Final Approval ➔ Agreement ➔ Fund Release

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KlubZero’s Insider Tips:

Secure ₹50 Cr Grant from DRDO’s Technology Development Fund (TDF)

• Target exact tech gaps listed in active EoIs (Expressions of Interest) — tailor your proposal 100% to that problem statement, not a general innovation.
  

• Partner with a DRDO-recognized lab or ex-DRDO expert as a consultant or mentor — this builds trust with reviewers and adds domain credibility.
  

• Form a strong consortium with a reputed academic institute (IIT/NIT/DIAT) to handle research-heavy components (max 40% share allowed).
  

• Show past defence or dual-use experience — even as a subcontractor. If none, get a LoI/MoU from a defence PSU or system integrator.
  

• Ensure your technology is at least TRL 3 (i.e., proof-of-concept exists). Attach test data, lab reports, or simulation results to back this.
  

• Submit a clean, focused DPR (Detailed Project Report) — cover technical depth, project plan, risk mitigation, and cost logic clearly. Avoid fluff.
  

• Don’t overscope — choose realistic deliverables, timelines (18–24 months), and budgets. DRDO prefers execution-focused proposals over theoretical ambition.
  

• Break your project into clear technical milestones — funding is milestone-based, so clarity here boosts evaluation.
  

• Show ownership of key IP (or intent to file), and highlight how the tech will remain Indian-controlled — crucial for defence tech.
  

• Keep your cap table clean — ensure >51% Indian ownership, no foreign control. Be ready with shareholding documents.
  

• Attach audited financials showing your capacity to fund the 10% industry share. If not, add bank statements or investor commitment letters.
  

• Highlight existing infra and manpower: include lab photos, equipment lists, and team CVs. This proves readiness to execute.
  

• Ensure you're not applying to multiple TDF projects simultaneously — only one active project is allowed per applicant.
  

• Get pre-endorsement or support letter from end-users (Army, Navy, IAF, DPSUs). Even informal nods help significantly.
  

• Use a well-structured PPT for the expert panel presentation (if shortlisted) — focus on solution clarity, execution plan, risk handling, and timelines.
  

• Register early on the TDF portal — many miss deadlines due to last-minute registrations and missing documents.
  

• Stay in sync with TDF webinars or DRDO briefings — they often clarify what evaluators are looking for.