Technology Development Fund (TDF) is a grant from DRDO, Ministry of Defence for indian industry entities including MSMEs and startups registered under applicable Indian law (proprietorships, partnerships, LLPs,…. It provides Up to INR 50 crore (90% of project cost as Grant-in-Aid), for defence technology · Make-in-India. Applications are open on a rolling basis.
Key facts
| Amount / benefit | Up to INR 50 crore (90% of project cost as Grant-in-Aid) (Financial support & expertise to develop/upgrade defence technologies) |
|---|---|
| Provider | DRDO, Ministry of Defence |
| Where | Pan-India |
| Sector | Defence technology · Make-in-India |
| Deadline | Rolling / always open |
| Funding Mechanism | Up to 90% of project cost as Grant-in-Aid, capped at INR 50 crore |
| Disbursement | 5 installments upon milestone achievement; advance funding available with bank guarantee |
| Development Timeline | Typical 2 years; extendable to 4 years for big-ticket projects |
| Track Record | 70 projects (INR 291.25 crore total) sanctioned; 16 defence technologies successfully developed |
What is Technology Development Fund?
The Technology Development Fund (TDF) is a flagship scheme of the Ministry of Defence, executed by DRDO (Defence Research and Development Organisation) to promote self-reliance in defence technology under the 'Make in India' initiative. TDF extends financial support and technical expertise to Indian industry—especially MSMEs and startups—to develop, upgrade, or innovate defence products, systems, processes, and futuristic technologies. Service Headquarters list their upgrade/development requirements as Projects, against which eligible applicants submit proposals. TDF funds successful projects with up to 90% of project cost as grant-in-aid, capped at INR 50 crores. It is run by DRDO, Ministry of Defence.
A grant is financial support you don’t repay — awarded against eligibility and, usually, agreed milestones or utilisation of funds. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
It is aimed at businesses in defence technology · make-in-india. Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
Who is eligible for Technology Development Fund?
Indian industry entities including MSMEs and startups registered under applicable Indian law (proprietorships, partnerships, LLPs, private limited companies, one-person companies, sole proprietorships, or consortiums of up to 3 entities). Entities must be owned and controlled by Resident Indian citizens with foreign investment not exceeding 49%. Educational institutions and research organizations may participate if their involvement does not exceed 40% of total project cost. Non-profit organizations are ineligible.
How much does Technology Development Fund give, and in what form?
Up to INR 50 crore (90% of project cost as Grant-in-Aid), as financial support & expertise to develop/upgrade defence technologies.
The scheme operates through a project-based application model. Service Headquarters define upgrade/development requirements and list them as 'Projects' on the TDF portal. Eligible industries register on the platform, complete their profiles, and apply for Projects meeting their capabilities. The Technical Committee (headed by DG TM, DRDO) assesses feasibility and tracks progress. Approved projects receive funding in up to 5 installments upon milestone achievement, with advance funding available against bank guarantee. Typical development period is 2 years, extendable to 4 years for big-ticket projects.
How to apply for Technology Development Fund
- Register on TDF portal (tdf.drdo.gov.in) as an industry entity
- Verify identity and complete organizational profile
- Obtain profile approval from TDF admin panel
- Browse and select Projects matching your capabilities
- Submit Expression of Interest (EOI) for selected Projects
- If shortlisted, prepare and submit Detailed Project Report (DPR)
- Upon approval, sign agreement and commence project
Documents required for Technology Development Fund
- Expression of Interest (EOI) for the selected Project
- Project Definition Document (PDD) per Appendix C
- Detailed Project Report (DPR) per Appendix F
- Financial documents per Annexure-II of Appendix-D
- Consortium agreement (if consortium)
- MSME/Startup India recognition certificate (if applicable)
Frequently asked questions
What types of entities are eligible for TDF?
MSMEs, startups, and other Indian industry entities (proprietorships, partnerships, LLPs, private companies) owned and controlled by Resident Indians with foreign investment not exceeding 49%. Consortiums of up to 3 entities are also eligible.
How is the funding paid out?
Approved projects receive funding in up to 5 installments upon achievement of defined milestones. Advance funding is available against a bank guarantee.
What is the maximum funding available?
TDF provides up to 90% of project cost as Grant-in-Aid, with a ceiling of INR 50 crore per project.
Related programmes
Browse similar grant programmes. CapEasy handles this under Fundraising advisory.
Source and verification
Official programme page: tdf.drdo.gov.in. Verification date pending. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.