Technology Development Fund (TDF) Scheme
Up to 90% funding, ₹50 crore project cap · defence technology · India industry
DRDO's Technology Development Fund (TDF) supports Indian MSMEs and DPIIT-recognized startups building cutting-edge defence technology by funding up to 90% of project costs — with projects valued at up to ₹50 crore eligible. The scheme covers prototype development, import substitution of defence components, and technology readiness upgrades from TRL 3 onwards. Register and apply on the TDF portal at tdf.drdo.gov.in.
About This Scheme
DRDO's Technology Development Fund (TDF) supports Indian MSMEs and DPIIT-recognized startups building cutting-edge defence technology by funding up to 90% of project costs — with projects valued at up to ₹50 crore eligible. The scheme covers prototype development, import substitution of defence components, and technology readiness upgrades from TRL 3 onwards. Register and apply on the TDF portal at tdf.drdo.gov.in.
Full official description
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. This programme is executed by the Defence Research & Development Organisation (DRDO) to meet the requirements of the Tri-Services, Defence Production and DRDO. The Scheme encourages participation of public/private industries, especially MSMEs and startups, so as to create an ecosystem for enhancing cutting-edge technology capability in the defence sector.
Objective:
- The Scheme aims to provide a major fillip to the defence manufacturing sector by encouraging the industry to innovate on defence technologies, in order to place India on the self-reliance trajectory. In addition to providing the grants-in-aid for the development of indigenous technology, the Scheme also provides the industry with various benefits.
Vision:
Building an ecosystem for enhancing cutting-edge technology capability for defence manufacturing to meet the requirements of Tri-Services, Defence Production and DRDO.
Mission:
Creating an ecosystem for promoting self-reliance by building indigenous state-of-the-art systems for defence applications.
Project Duration:
Maximum development period will be four (4) years.
Focus Areas:
- Significant upgradation/ improvements/developments in the existing products/processes/applications.
- Technology readiness level upgradation from TRL 3 onwards to realization of products as per Tri-Services requirements.
- Development of futuristic technologies/innovative products which can be useful for defence applications.
- Import substitution of components whose technologies do not exist in the Indian industry.
- The scheme will be limited to development of technologies or prototypes of products having potential use for National Defence.
Benefits
- Funding up to 90% of total project cost
- Maximum eligible project value: ₹50 crore
- Project duration: up to 4 years
- Up to 20% additional funding available to incubators linked with nascent startups
- Academia can contribute up to 40% of total project effort
- Funds released in tranches tied to agreed milestones — either advance (against bank guarantee) or reimbursement-based
💡 Why Startups Should Care
For a defence tech startup, 90% funding on projects up to ₹50 crore is substantial — this is grant-style funding that lets you pursue capital-intensive R&D (sensors, materials, systems) without needing to raise that capital from private investors first.
Who Can Apply (Eligibility)
- Must be a registered Indian company (public/private limited, LLP, partnership, OPC, or sole proprietorship) — especially MSMEs and startups
- Startups must be DPIIT-recognized
- Startups incorporated less than 3 years ago (nascent startups) must be incubated at a Central or State government-assisted incubator
- Must not have received government grants for a similar technology previously
- Must be majority-owned (51%+) by a Resident Indian citizen
- Project must focus on defence technology development (TRL 3 and above)
How to Apply
- Register on the TDF portal (tdf.drdo.gov.in).
- Submit your defence technology project proposal, optionally in collaboration with academia/research institutions.
- Agree on project milestones with the funding agency.
- Submit progress reports and utilization certificates as milestones are achieved.
- Funds are released in tranches linked to milestone completion.
Frequently Asked 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.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Detailed project update report
- Utilization certificate & statement of expenses
- Certificate from Chartered Accountant