MoD's tech development fund cap raised 5 fold to Rs50cr

 

The funding of innovative defence projects under the Technology Development Fund (TDF) was raised from Rs 10 cr to 50 cr, per project.
The TDF scheme, enforced by DRDO( Defense research and development organization) supports the indigenous development of components, products, systems and technologies by MSMEs and start-ups. The Union budget has reserved 25% of defence R&D for private industry, start-ups and academia.  This is to boost the vision of Aatmanirbharta, in the defence manufacturing sector by encouraging to development of innovative defence technologies, and developing complex technologies for existing and future weapon systems in defence. To date, 56 projects have been sanctioned under the TDF scheme.  This is a massive win-win for MSMEs and bigger companies, clearly a path for investment in capabilities. There are four schemes under which the small defence companies can approach the Ministry of defence for funding: IDEX( Innovation for defence excellence, small scheme that seeks innovative solutions for specified challenges that are encountered in the ground, limit of 1.5 cr) ;  IDEX Prime; the TDF and Make ll and Make all modalities explained in Defense a question policy of 2021.

TDF aims to develop products for military and other strategic industries such as ISRO. With the IDEX products, MSMEs also benefit as it functions in the supply chain. From 2009- 2019, the TDF was allocated Rs 544 crore ( four years of which the allocation was zero). Zeus Numerix was the winner of Aero India 2021, for developing stimulation software that makes warships near-invisible to radar. With funding from IDEX prime Zeus can ease transition of their innovative products into large scale manufacturing unit. Another MSME named BigBangBoom Solutions won IDEX challenge for developing a see through armor, allowing a 360-degree situational view to the tank crew, by mounting camera outside the tank with 360-degree view and stitches the image together through data fusion. The current funding is insufficient, allocation of 50 cr is just the required amount, says Praveen Dwarkanath, who runs BigBangBoom.