AI SummaryTechnology Development Fund (TDF) Scheme helps Indian MSMEs, startups, and industries achieve self-reliance in defence manufacturing. This Ministry of Defence scheme provides financial support for developing indigenous, modern technologies and prototype designs, strengthening the domestic defence sector while backing the Make in India mission.
The scheme is very much alive in 2026. In the latest round, the 13th Empowered Committee meeting of the TDF Scheme, held under the chairmanship of the Defence Secretary, approved 17 new defence research projects for Indian industry and startups. This shows the government continues to push private participation in defence research under the Aatmanirbhar Bharat drive.
Technology Development Fund Scheme - Introduction
Technology Development Fund (TDF) Scheme promotes self-reliance in defence technology as a key part of the Make in India mission. Managed by the Defence Research & Development Organisation (DRDO), this programme meets the critical needs of the Tri-Services, defence production, and DRDO. It encourages public and private industries, especially MSMEs and startups, to build a strong ecosystem for modern defence capabilities.
Objective: This scheme gives a big push to the defence manufacturing sector by encouraging innovation and moving India toward self-reliance. It offers grants-in-aid to develop indigenous technology along with other industry benefits.
Vision: Building a strong ecosystem to improve technology capabilities for defence manufacturing that meets the needs of the Tri-Services, defence production sectors, and DRDO.
Mission: Creating a joint environment to promote self-reliance by building indigenous, modern systems for defence applications.
Project Duration: You should complete your development within a maximum period of four years.
Focus Areas:
- Big upgrades or improvements to existing products, processes, or applications.
- Technology readiness level (TRL) upgrades starting from TRL 3 through to product realization.
- Development of futuristic technologies or new products suitable for defence use.
- Import substitution of components where technology is currently unavailable in Indian industry.
- Development of technologies or prototypes that hold potential for national defence.
Key Information
| Scheme Name | Technology Development Fund (TDF) Scheme |
|---|---|
| Level | Central |
| Scheme For | Infra |
| Beneficiary States | All |
| Category | Business & Entrepreneurship |
| Target Beneficiaries | Industries, Business Entity |
| Sub Category | Setting up / start-up / entrepreneurship |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Ministry | Ministry of Defence |
Latest Update 2026
The 13th Empowered Committee meeting of the TDF Scheme approved 17 new defence research projects. These projects aim to speed up the development of advanced military technologies by Indian industry and startups. The meeting took place at DRDO Bhawan under the chairmanship of the Defence Secretary and Secretary, Department of Defence R&D and Chairman DRDO.
A major highlight of this meeting was the handover of an indigenously developed Reconfigurable Digital Interceptor Receiver by Quartodonda Technologies, an Indian startup. This startup earlier won DRDO's Dare to Dream innovation challenge and later received financial support under the TDF Scheme. The technology was formally presented to the Empowered Committee, marking the successful completion of its development cycle under the programme.
This shows the growing role of Indian startups in the defence innovation ecosystem and proves how the TDF Scheme turns promising ideas into operationally useful technologies through government-backed funding and technical support.
Benefits
Funding Support:
This scheme provides big financial support to make sure your projects move forward well:
| Funding Aspect | Limit |
|---|---|
| Project Cost | Up to ₹50,00,00,000 |
| Maximum Grant | Up to 90% of the total project cost |
| Academia Contribution | Up to 40% of the total project effort |
You may work with academia or research institutions. Funds are released based on mutually agreed big steps, either as an advance against a bank guarantee of the same amount or as reimbursement upon completion of milestones. Later installments are released after you successfully achieve your defined milestones.
Purpose of Funding Support: It aims to provide financial support for prototype development and trials. It specifically targets nascent startups for project needs and allows up to 20% funding support for incubators associated with the startup.
Eligibility
To qualify for this support, you must meet the following criteria:
- You must operate as a public limited company, private limited company, partnership firm, limited liability partnership, one-person company, or sole proprietorship registered under Indian laws.
- Your startup must hold appreciation from the Department for Promotion of Industry and Internal Trade (DPIIT).
- If you are a 'nascent startup' (incorporated for less than 3 years) and wish to apply, you should be incubated at a Central or State government-assisted incubator.
- Your firm must not have received grants for the same technology from any other government scheme.
- Your business must be owned and controlled by a resident Indian citizen, with at least 51% shareholding by Indian citizens.
Application Process
Online Registration:
You should register on the official portal to begin your journey. Start by visiting the DRDO TDF page. Click on the Proceed to Login button, then select Register. Provide your name, contact details, organization name, and select your specific focus area. Confirm that your company is Indian-owned with at least 51% stake held by a resident Indian. Accept the terms and conditions, verify the captcha, and submit your registration.
Post-Registration:
Once registered, visit the same portal, log in with your credentials, and furnish all required project details to complete your application for the Technology Development Fund (TDF) Scheme.
Documents
To receive later installments after the initial grant, you should submit the following documents:
- Detailed project update report.
- Use certificate and statement of expenses.
- Official certificate from a chartered accountant.
References
For further details, refer to these official resources:
FAQ's
What is Technology Development Fund (TDF) Scheme?
Technology Development Fund (TDF) Scheme is a Ministry of Defence programme designed to promote self-reliance in defence technology as part of the Make in India mission.
Which department launched this scheme?
The Ministry of Defence launched the Technology Development Fund (TDF) Scheme, and it is managed by DRDO.
How is MSME defined for the purpose of the TDF program?
An MSME is defined according to the MSMED Act 2006 for the purposes of the Technology Development Fund (TDF) Scheme.
Is this scheme specific to any sector?
Yes, it focuses specifically on the defence and aerospace sectors.
Can an organization apply for multiple TDF projects simultaneously?
Yes, you can apply for multiple projects at the same time.
What nature of proposals does the TDF scheme support?
This scheme supports: 1. Big upgrades or improvements to existing products. 2. TRL upgrades from level 3 upwards. 3. Development of futuristic/new products for defence. 4. Import substitution for important components.
Is an MSME or startup still eligible if it forms a joint venture with a foreign firm?
No, any industry with more than 49% foreign investment is not eligible.
Can I empanel a consultant to apply on my behalf?
Yes, you may use a consultant to manage your application.
Do I need to pay a service fee to DRDO for applying?
No, the application process for the Technology Development Fund (TDF) Scheme is completely free.
How can non-profit research institutions participate?
Non-profit research institutions can participate only by working with an Indian industry partner, where the Indian industry acts as the lead bidder.