Technology Development Fund (TDF) Scheme
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Quick Answer
A Ministry of Defence program offering grants up to ₹50 crore for startups and MSMEs to develop cutting-edge indigenous defence technologies and prototypes as part of the 'Make in India' initiative.
- Funding amount
- Up to ₹50 Cr
- Funding type
- Grant
- Provider
- Ministry of Defence
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this grant
The Technology Development Fund (TDF) Scheme, initiated by the Ministry of Defence, is a cornerstone of India's 'Make in India' endeavor, specifically tailored for the defence sector. Executed by the Defence Research & Development Organisation (DRDO), its core purpose is to foster self-reliance in defence technology and meet the evolving requirements of the Tri-Services, Defence Production, and DRDO itself. This strategic program actively encourages robust participation from both public and private industries, with a particular emphasis on empowering Micro, Small, and Medium Enterprises (MSMEs) and startups. The overarching goal is to cultivate a dynamic ecosystem that propels cutting-edge technology capabilities within the Indian defence landscape.
The scheme aims to significantly boost the defence manufacturing sector by incentivizing the industry to innovate and develop indigenous defence technologies. Beyond financial assistance, it provides a comprehensive support framework to accelerate the journey towards technological self-sufficiency. The vision driving TDF is to establish a robust ecosystem for advanced technology in defence manufacturing, ensuring India's strategic needs are met with locally developed solutions. Its mission is to cultivate self-reliance by facilitating the creation of indigenous, state-of-the-art systems designed for a wide range of defence applications, positioning India as a global leader in defence innovation and production.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
The Ministry of Defence (MoD), Government of India, drives defence innovation through the Innovations for Defence Excellence (iDEX) framework, launched in 2018 under the Defence Innovation Organisation (DIO). iDEX creates an ecosystem to foster innovation in defence and…
Learn moreBenefits & Funding
- Amount
- Up to ₹50 Cr
- Fund type
- Grant
- Equity
- Equity-free
- Repayment
- Non-repayable
What You Get
The Technology Development Fund offers substantial financial assistance, with project costs up to ₹50 crore (INR 50,00,00,000/-) considered for funding. This grant can cover up to 90% of the total project cost, requiring a minimum 10% co-financing from the industry partner. Funding disbursements are strictly milestone-based, ensuring progressive release upon successful completion of mutually agreed-upon project stages. Funds can be released either as an advance against a bank guarantee or as reimbursement upon milestone completion, offering flexibility to grantees. The scheme explicitly aims to provide financial aid for prototype development and trials, specifically targeting nascent startups. For these nascent ventures, the program includes a provision for inclusive funding support of up to 20% to associated incubators, thereby strengthening the early-stage ecosystem. This comprehensive support is designed to propel indigenous innovation in critical defence technologies.
- Disbursement
- Milestone Based
- Duration
- 49 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications submitted through the TDF portal undergo a rigorous evaluation process. Projects are typically screened based on their alignment with national defence requirements, technological innovation, feasibility, and potential for import substitution. Proposals demonstrating TRL 3 onwards and clear pathways to product realization are given preference. A selection committee, comprising experts from DRDO, Ministry of Defence, and potentially external subject matter specialists, assesses each application against predefined technical and strategic criteria. Shortlisted applicants may be invited for presentations or detailed discussions to further elaborate on their project plans and capabilities, leading to the final selection of projects for funding.
Application Process
- 1
Register Online
Register on the official TDF portal by providing contact and organization details, specifying focus areas, and confirming Indian ownership.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
Submit on the official portal
Use the official application link and verify all details before final submission.
- 3
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of the TDF Scheme?
The TDF Scheme aims to promote self-reliance in Defence Technology as part of the 'Make in India' initiative, encouraging indigenous innovation and manufacturing in the defence sector through grants-in-aid to industries, especially MSMEs and startups.
What is the maximum funding available under the TDF Scheme?
The scheme can provide funding for project costs up to INR 50,00,00,000/- (₹50 crore). The funding may cover up to 90% of the total project cost.
Who is eligible to apply for the TDF Scheme?
Eligible applicants include various Indian-registered entities such as Public/Private Limited Companies, Partnership Firms, LLPs, One-Person Companies, and Sole Proprietorships. DPIIT-recognized startups and MSMEs are particularly encouraged. The entity must be owned and controlled by a Resident Indian citizen with at least 51% shareholding.
Are there any specific technology readiness level (TRL) requirements?
Yes, the scheme supports technology readiness level (TRL) upgradation from TRL 3 onwards, leading to the realization of products suitable for Tri-Services requirements. This means projects should have at least a proof-of-concept demonstrated.
How are funds disbursed under the TDF Scheme?
Funds are released in a milestone-based manner, tied to the successful completion of agreed-upon project stages. Disbursements can be made either in advance against a bank guarantee or as reimbursement after milestones are achieved.
Is DPIIT recognition mandatory for startups?
Yes, all startup applicants must be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) as per Government of India guidelines to be eligible for the scheme.
Sources
Data on this page is compiled from official program and provider references.
