Technology Development Fund (TDF) — ₹50 Cr Defence Grant — Frequently Asked Questions

The scheme considers project costs of up to ₹50 crore (INR 50,00,00,000). Within that, the grant can cover as much as 90% of the total project cost, and the industry partner is expected to co-finance at least the remaining 10%.

No. Applications are rolling and the scheme remains open, so you can register and submit a proposal at any point during the year rather than waiting for a specific window.

Indian-registered entities of several kinds can apply: Public and Private Limited Companies, Partnership Firms, LLPs, One-Person Companies and Sole Proprietorships. MSMEs and startups are especially encouraged, and at least 51% of the shareholding must sit with a Resident Indian citizen, with the entity owned and controlled in India.

Yes. Every startup applicant must hold valid DPIIT recognition as per Government of India guidelines. Without it, a startup application is not eligible.

Yes — nascent startups incorporated less than three years ago are eligible, but there is a condition attached. Such a venture must be incubated at a Central or State government-assisted incubator. There is also a provision for inclusive funding support of up to 20% to the associated incubator.

No. TDF is a grant scheme, not an investment, so it does not take an equity stake in your company. The funding is a grant-in-aid that supports prototype development and trials.

Disbursement happens in stages. Funds are released as mutually agreed milestones are completed successfully. You can receive them either as an advance backed by a bank guarantee, or as a reimbursement after a milestone has been achieved.

The scheme supports technology readiness level upgradation from TRL 3 onwards, leading to a product suitable for Tri-Services requirements. In practical terms, your project should have at least a proof-of-concept demonstrated, and proposals with a clear path to product realisation are preferred.

No. Applicants who have previously received a government grant for developing a similar technology are not eligible under this scheme for that work.

Applications go through the official TDF portal. You register by providing your name, contact details and organisation name, selecting your role and focus area, and self-declaring that the company is Indian-owned with at least 51% held by a Resident Indian citizen. You then accept the terms and conditions, verify the captcha and complete registration. After that, log in with your registered email and password and furnish the detailed information the portal asks for regarding your project proposal.

Technology Development Fund (TDF) — ₹50 Cr Defence Grant is offered by Ministry of Defence, a government body. It is provided as non-dilutive funding.