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Business & Entrepreneurship

Technology Development Fund (TDF) Scheme

Technology Development Fund (TDF) has been established to promote self-reliance in Defence Technology as a part of the 'Make in India' initiative.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

Funding Support: | - The project cost of up to INR 50,00,00,000/- will be considered for funding. | - The funding may be up to 90% of the total project cost. | - Industry may work in collaboration with academia or research institutions. | - The funding will be linked to mutually agreed milestones. | - Funds will be released either in advance against a bank guarantee of the same amount as collateral, or reimbursement based on the completion of milestones. | - Subsequent installments will be released on successful completion of milestones. | Purpose of Funding Support: | - Aims to provide financial assistance to startups for prototype development and trials. | - Proposes to target nascent startups for project requirements inclusive of funding support of up to 20% to the incubators associated with the startup. | - Option to create partnerships with academia, where the contribution of the academia is up to 40% of the total project effort.

Who can apply

Public limited company, a private limited company, a partnership firm, a limited liability partnership, one-person company, sole proprietorship registered as per applicable Indian laws registered in India especially MSMEs and Startups.; Startup must be recognized by Department for Promotion of Industry and Internal Trade (DPIIT) as per Government of India (GOI) guidelines.; Startup incorporated for less than 3 years from date of submission of application will be considered as nascent startups.; Nascent Startup should be incubated at one of the Central/State government assisted incubators.; Startup should not have received any grants/grants-in-aid by any government scheme for a similar technology.; The startup must be owned and controlled by a Resident Indian citizen with a shareholding of at least 51%.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is Technology Development Fund (TDF) scheme?

Technology Development Fund (TDF) has been established to promote self-reliance in Defence Technology as a part of the 'Make in India' initiative. It is a programme of the Ministry of Defence.

Which department has launched this scheme?

Ministry of Defence has launched this scheme.

How is MSME defined for the purpose of the TDF Program ?

MSME is defined as per the MSMED Act 2006 for the purpose of the Technology Development Fund Scheme.

Is this Scheme specific to any sector ?

Yes (Defence and Aerospace).

Can an organisation apply in multiple TDF Projects simultaneously at the same time ?

Yes.

What is the nature of the proposals to be supported under TDF Scheme ?

A) Significant up-gradation/improvements/ further developments in the existing products/process/application etc. | b) Technology readiness level up-gradation from TRL3 onwards to realization of products as per Tri-Services requirements. | c) Development of futuristic technologies/innovative products which can be useful for the defence applications. | d) Import substitution of components whose technologies does not exist with the Indian industry.

Is MSME/Startup firm still eligible to compete for TDF award if it forms a 50-50 joint venture with a non-profit or foreign firm ?

No, the Industry with excess of 49% foreign investment will not be eligible.

Can I empanel a consultant to apply on my behalf?

Yes.

Do I need to pay any service fee to DRDO/DTDF for applying for the scheme?

No.

How can non-profit research institutions qualify to participate in the TDF program ?

Non-profit research institution can only apply in collaboration/association with an Indian Industry. Indian Industry will be the Lead Bidder.