New Delhi: The Indian government has sanctioned 79 projects worth ₹334 crore under the Technology Development Fund (TDF) scheme, Minister of State for Defence Sanjay Seth told Lok Sabha. This highlights the government’s commitment to enhancing indigenous capabilities in the defence sector through increased participation from public and private industries, particularly focusing on micro, small, and medium enterprises (MSMEs) and start-ups.
The Technology Development Fund Scheme is a flagship program of the Ministry of Defence (MoD) executed by DRDO under the ‘Make in India’ initiative. The Union Government has approved the scheme to encourage industries, especially MSMEs and start-ups, to develop various defence technologies. The scheme aligns with the vision of ‘Aatmanirbhar Bharat’ by integrating new industries into the design and manufacturing of defence technology. Funding of up to ₹50 crore per project is provided to the industry as a grant-in-aid, the minister said.
The Defence Research and Development Organisation (DRDO) has established the DRDO Industry Academia Centres of Excellence (DIA-CoEs) at various prestigious institutions, including the Indian Institute of Science (IISc) Bangalore, Indian Institutes of Technology (IITs), and several Central and State Universities. This initiative aims to foster a Directed Research Ecosystem that enhances collaboration between DRDO laboratories, academia, start-ups, and industries, ultimately driving innovation in defence technology.
The Innovations for Defence Excellence (iDEX) framework, launched by the Government of India in April 2018, aims to enhance innovation and technology development within the Defence and Aerospace sectors. This initiative is designed to engage a wide array of stakeholders, including Micro, Small, and Medium Enterprises (MSMEs), start-ups, individual innovators, research and development institutes, and academic institutions. The overarching goal is to promote self-reliance in India’s defence capabilities.
A total of 79 projects have been approved, with a financial commitment of approximately ₹334 crore. This includes a significant number of initiatives aimed at developing advanced defence technologies.
Since January 2023, ₹120 crore has been allocated under the TDF scheme, with ₹43.89 crore already disbursed as grant-in-aid to various industries involved in these projects.
The TDF scheme encourages the development of dual-use technologies that are currently unavailable within the Indian defence industry. It is part of the broader “Make in India” initiative aimed at achieving self-reliance in defence manufacturing.
The scheme has supported 16 MSMEs and 20 start-ups since its inception in January 2022, fostering innovation and technological advancements within these sectors.
Since 2019, DRDO has been organising the Pan India Dare to Dream Innovation Contest annually to encourage innovators, entrepreneurs, individuals above 18 years, and start-ups (recognised by DPIIT and founded by Indians) to contribute innovative ideas in the Defence and Aerospace sectors. Through this contest, DRDO identifies and awards the best ideas, supporting their development into prototypes under the TDF scheme.
Among the successful projects are developments in unmanned aerial systems and advanced simulation tools for military applications, which are crucial for enhancing operational capabilities within the armed forces.
This initiative reflects India’s strategic move towards reducing dependency on defence imports while bolstering its domestic industry capabilities through targeted funding and support for innovative technologies.
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