Technology Development Fund (TDF) Scheme

Recently, the Defence Research and Development Organisation (DRDO) handed over seven indigenously developed technologies to the Indian Armed Forces. These technologies were developed under the Technology Development Fund (TDF) Scheme, highlighting India’s progress toward self-reliance in defence technology.

About the Technology Development Fund (TDF) Scheme

The Technology Development Fund (TDF) Scheme was established to promote indigenous development of defence technologies as part of the ‘Make in India’ initiative. The scheme aims to reduce India’s dependence on defence imports by fostering home-grown innovation.

Objectives of the TDF Scheme

The primary objective of the scheme is to encourage participation of public and private industries, particularly Micro, Small and Medium Enterprises (MSMEs) and startups, in the defence sector. It seeks to create an ecosystem that enhances cutting-edge technological capabilities within the country.

Nodal Ministry

The Ministry of Defence is the nodal ministry responsible for the implementation and oversight of the Technology Development Fund Scheme.

Funding Support under the TDF Scheme

Under the scheme, projects with a total cost of up to ₹50 crore are eligible for funding. Financial assistance can extend up to 90% of the total project cost, significantly reducing the financial burden on innovators.The maximum development period allowed for a project is four years, ensuring timely development and delivery of technologies.

Eligibility Criteria for the TDF Scheme

Eligible Entities

Eligible applicants include public limited companies, private limited companies, partnership firms, limited liability partnerships, one-person companies, and sole proprietorships registered under Indian law. The scheme places special emphasis on MSMEs and startups.The entity must be owned and controlled by resident Indian citizens. Companies with more than 49% foreign investment are not eligible under the scheme.

Eligibility Conditions for Startups

Startups must be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) in accordance with Government of India guidelines.Startups incorporated less than three years prior to the application date are considered nascent startups. Such startups must be incubated at a Central or State Government–assisted incubator.Startups should not have received grants or grants-in-aid from any government scheme for the same or similar technology. Additionally, the startup must be owned and controlled by a resident Indian citizen with a minimum shareholding of 51%.

Success Stories under the Technology Development Fund (TDF) Scheme

The Technology Development Fund (TDF) Scheme has supported several successful indigenous defence and space technology projects, demonstrating its effectiveness in promoting innovation and self-reliance.

Green Propulsion System

One of the most notable projects supported under the TDF Scheme is the Green Propulsion System developed by Bellatrix Aerospace Pvt. Ltd., a Bengaluru-based startup. The system has been designed specifically for microsatellites and has successfully demonstrated its in-orbit functionality, marking a major milestone in India’s private space technology capabilities.

Key Achievements

• Non-Toxic Propellant: The project led to the development of an indigenously produced, non-toxic propellant, which is both safe to handle and environmentally friendly.

• Validated Performance: The propulsion system’s performance was validated using telemetry data from the PSLV Orbital Experimental Module (POEM) through ISRO’s Telemetry, Tracking, and Command Network (ISTRAC). The system exceeded all specified performance parameters.

• Technological Milestones: The project successfully demonstrated pulsed mode and steady-state firing in vacuum conditions, effective passivation of residual propellant in outer space, and the establishment of standardized filling procedures in accordance with TDF guidelines.

Anti-Drone Technology

Another significant achievement under the TDF Scheme is the development of anti-drone technology, which has been handed over to Bharat Electronics Limited (BEL) and selected private sector firms. This technology highlights the strategic importance of indigenous counter-drone capabilities and demonstrates the commercial viability of innovations supported through the TDF framework.

Global Competitiveness and Strategic Impact

By reducing dependence on foreign defence technologies and encouraging indigenous research and development, the TDF Scheme aims to enhance the global competitiveness of Indian defence products. This approach not only strengthens national security but also opens avenues for defence exports and international collaborations, positioning India as an emerging global defence technology provider.