The Defence Research and Development Organisation (DRDO)‘s Technology Development Fund (TDF) scheme, which is part of the ‘Make in India’ initiative, has sanctioned a total of 78 projects valued at ₹333.21 crore so far. A significant portion of this funding has been directed towards MSMEs and start-ups, according to a senior DRDO official.
The TDF scheme is designed to support the development of innovative defence technologies. Under the scheme, MSMEs and start-ups can submit project proposals, if selected, they can receive funding from DRDO. “Initially, the funding cap was ₹10 crore, but following consultations with MSMEs and feedback from the Raksha Mantri, the funding limit has been raised to ₹50 crore, said Manish Pratap Singh, Director, DYSL-CT, DRDO Young Scientist Laboratory, Chennai. He was speaking at a session on the “Role of MSMEs in Defence Manufacturing” at EEPC India’s IESS XII event.
A key feature of the TDF scheme is that DRDO will cover 90 per cent of the project cost, with the remaining funding to be provided by the industry partner.
Singh explained the approval process for the TDF scheme, highlighting that it is highly transparent. The evaluation committee, including the Chairman, adopts an open-minded approach. “We do not focus on bureaucratic formalities; instead, our primary focus is on the innovation of the technology and how well it aligns with defence needs. Our goal is to fund projects that have the potential to make a meaningful impact,” he added.
Singh also highlighted DRDO’s Dare to Dream, an initiative that invites individuals and small companies to submit innovative solutions for existing defence challenges. Winners of the contest can receive additional funding to develop their ideas into prototypes through the TDF. “This scheme provides an excellent opportunity for individuals or small companies with innovative ideas to showcase their solutions. There is no application fee, and the top winners receive cash prizes (₹10 lakh for first place, ₹6 lakh for second, and ₹5 lakh for third),” he added.
Additionally, Singh spoke about two government programmes—IDX (Innovative Defence Excellence) and Aditi—which have a combined budgetary support of ₹750 crore between FY24 and FY26, aimed at encouraging MSMEs to take advantage of emerging opportunities.
“In 2023, the government launched IDX, which promotes cutting-edge technologies. Under this scheme, MSMEs can receive up to ₹3 crore for innovative defence proposals. Recognising that this might not be enough, the government has also launched the Aditi scheme, which offers up to ₹25 crore in funding, with 50 per cent of the budget covered by the Ministry of Defence. The Aditi scheme will focus on developing 30 critical technologies aimed at import substitution,” he added.