The Technology Development Fund (TDF), implemented by DRDO under the Ministry of Defence, aims to promote self-reliance in defence technology through innovation and funding. As part of the ‘Make in India’ initiative, it supports MSMEs and startups working on critical technologies with defence applications.
Scheme Key Highlights (Short Summary)
• Supports MSMEs/startups in developing defence-related technologies
• Funding up to ₹50 crore with up to 90% project cost covered
• Focus on TRL upgrades, import substitution, and indigenous innovation
• Collaborative opportunities with academia and research institutions
• Online application via https://tdf.drdo.gov.in
Benefits
• Funding Support: Up to ₹50 crore per project; 90% of total project cost
• Disbursement: Based on milestones; in advance (with bank guarantee) or reimbursement
• Prototype Development: Financial aid for design, development, and trials
• Incubator Support: 20% of project cost for incubators linked with nascent startups
• Academic Collaboration: Academia may contribute up to 40% of project effort
• Development Period: Maximum of 4 years for project completion
• Purpose: Strengthen India’s defence manufacturing and innovation ecosystem
Focus Areas
• Technology Readiness Level (TRL) upgrades from TRL-3 onwards
• Futuristic and innovative defence-related technologies
• Import substitution for components not available in Indian industry
• Development of prototypes with national defence utility
• Significant upgrades to existing defence processes and products
Eligibility Criteria
• Indian-registered companies including Pvt. Ltd, LLPs, partnerships, OPCs
• Particularly MSMEs and startups recognized by DPIIT
• Nascent startups (≤3 years old) must be incubated at govt-assisted incubators
• Must not have received any grant for the same technology from another govt scheme
• 51% or more ownership must be with a Resident Indian Citizen
Application Process
Online
• Visit: https://tdf.drdo.gov.in
• Click “Proceed to Login”, then click “Register”
• Fill in name, contact details, organization name, category, and focus area
• Self-declare as an Indian entity with ≥51% Indian ownership
• Accept terms and conditions and verify captcha
• After registration, log in and complete application details
Documents Required
• Detailed Project Update Report
• Utilization Certificate & Statement of Expenses (UC & SE)
• Certificate from Chartered Accountant for fund utilization
Frequently Asked Questions (FAQs)
Q: What is the TDF Scheme?
A funding initiative by DRDO to support MSMEs and startups developing defence technologies.
Q: Which department runs this scheme?
Ministry of Defence, implemented via DRDO.
Q: Can MSMEs apply under this scheme?
Yes, MSMEs and DPIIT-recognized startups are eligible.
Q: Is the scheme sector-specific?
Yes, focused on technologies with defence applications only.
Q: Can multiple proposals be submitted by one applicant?
Yes, simultaneous applications are allowed.
Q: Are joint ventures eligible?
Yes, provided the entity is Indian-owned (51%) and complies with eligibility.
Q: Can consultants apply on behalf of applicants?
No, only the applicant must apply through the official portal.
Q: Is there a service fee to apply?
No, there is no fee for applying to the TDF scheme.
Q: Can non-profit R&D institutions participate?
Yes, in collaboration with industry under defined guidelines.