Technology R&D Funding for Commercialization (TDB)

The Research & Development Cess Act, 1986 was enacted by the Parliament for the levy and collection of cess at a rate not exceeding 5% on all payments made for the import of technology for the purposes of: i) encouraging the commercial application of indigenously developed technology; and ii) for adapting imported technology to wider domestic application. For the development and application of indigenous technology in a dynamic economic environment, the Government of India enabled the placing of proceeds of the Research and Development Cess on the import of technology into a fund called the Fund for Technology Development and Application.

What The Board Does

The TDB provides equity capital, subject to such conditions as may be determined by regulations, or any other financial assistance to Indian industrial concerns and other agencies, attempting development and commercial application of indigenous technology, or adapting imported technology to wider domestic applications.

Who Can Be Funded

Commercial enterprises companies incorporated under the Companies Act, 1956 or the Companies Act, 2013 (excluding sole entrepreneur/sole proprietorship/partnership concerns) cooperatives and other agencies are eligible to seek money from the Board for the development and application of technology-based product or service.

If the project is for the commercialization of technology, developed by a domestic R&D institution, the enterprise should apply, along with an agreement signed by the R&D institution willing to transfer the technology.

If an enterprise has developed the technology with the assistance of an R&D institution, the application to the Board by such enterprise or its associate will also be considered (contract or joint or sponsored research).

Applications from enterprises, with or without any other partners for commercialization of indigenous technologies may be considered if the project is for commercialization of technology developed through the financial support provided under Home Grown Technology (HGT)/Mission projects/Technology Vision 2020 implementation projects of Technology Information, Forecasting and Assessment Council (TIFAC) or under the Programme Aimed at Technological Self Reliance (PASTER) of DSIR or under the Technopreneur Promotion Programme (TePP) jointly operated by DSIR and DST.

Start-up companies and/or technocrat entrepreneurs, with or without any other partners in agricultural product processing, information technology or designing and developing special engineering machinery are encouraged to apply for projects in these areas.

Where legal title to domestically generated intellectual property is held (or filed for) by an individual generator (e.g. inventor) of such property or by an industrial concern, such individual or industrial concern shall also be eligible to apply.

If the activity is for adapting and commercializing imported technology, financial assistance from the Board may be provided for:

 Effecting crucial modifications for wider domestic applications through an ‘R&D institution’ or through an individual and/or

 Further development of commercializable technology imported when that technology is at ‘proof-of-concept’ or design stage.

What Type Of Projects Can Be Funded

Development and commercialization of a new product/process/application through indigenous technology.

Significant improvements in the existing product/ process/ application.

Substantial quality upgradation, reduced material consumption, reduced energy consumption, cost reduction, improved competitiveness, improved ergonomics.

Development and deployment of technology or design to satisfy existing occupational health and/or safety standards or improve upon them.

Development and deployment of technology or design necessary to satisfy domestic or foreign environmental requirements or standards current or anticipated.

Development and deployment of technology or design necessary to satisfy the requirements of domestic legislation and/or decisions of the judiciary or product liability legislation in export markets. Adaptation/modification to product/process which has been imported so as to make it suitable for wider domestic application.

Replacement of imported raw materials/components with indigenous substitutes.

Providing the socio-commercial viability of new and/ or renewable sources of energy commercially deliverable to consumers.

Development of technology to meet the medical standards and providing socio-commercial viability of bio-medical equipments and devices.

Hazardous, waste recycling.

Accessing The Fund

The Board may provide, in instalment(s) equity capital or loan assistance to enterprises or grants to enterprises/agencies. The Board does not levy any processing, administrative or commitment charges from the applicant. The duration of the project should not normally exceed three years. The Board shall consider each application on merits and mere fulfillment of these guidelines shall not qualify an application for financial assistance.

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