1. Public Limited Company, Private Limited Company, Partnership Firm, Limited Liability Partnership, One Person Company, Sole Proprietorship registered as per applicable Indian Laws.

2. The industry has to be owned and controlled by Indian Citizen.

3. The Industry with excess of 49% foreign investment will not be eligible.

4. Industry shall also possess or be in the process of acquiring license/ development of products if the product/ technology under project requires license as per DIPP’s licensing policy.

5. Company/ Organization which have been debarred/ banned/ blacklisted or the business dealings with whom have been “suspended” / “put on hold” by the Ministry of Defence will not be eligible.

6. Industry may apply in individual or Association of Persons (AOP) i.e. consortium of Indian Companies consisting of two or more than two undertaking joint and several liability.

Feasibility Studies for each project shall be carried out with the involvement of all important stakeholders (Industry, Subject Experts, Industry Associations, etc.). The aim of this study is to identify the technical & financial feasibility of the proposed projects under TDF Scheme. Feasibility study includes preliminary assessment of capability of industry to undertake the project, estimated cost and time for development, estimated cost of the component bearing the technology, etc. This will help the Indian industry (Development Agency) to assess the capability to design and develop, within the required parameters.

The feasibility study shall include the following aspects:

1. A preliminary assessment of capability of the industry to undertake design and development of components/ assembly, etc. bearing the technology.
2. Estimated time for development.
3. Estimated cost of development.
4. Estimated cost of the component bearing the technology.

Formulation of Specifications

Based on the feasibility study, Qualitative and Quantitative specifications specifying the key parameters of the required technology will be drafted.  

In order to undertake the online feasibility study for the Project topic of your interest and expertise, please refer to the Brief Project Requirement document for initial understanding about the project specification. 

1. The following criteria shall be used for determining whether, what and upto what extent the cost incurred by Development Agency shall be paid out of public funds

1. Cost Allowability

2. Cost Allocability

3. Cost Reasonableness; and

4. Terms of Agreement

2. A cost is allocable if it is assignable or chargeable to one or more cost objectives on the basis of relative benefits received or other equitable relationship.

3. A cost is reasonable if it would have been incurred by prudent entity in the conduct of competitive business.

4. The following cost will be allowable

1. Manpower Cost

2. Equipment

3. Consumables

4. Academic (Maximum 40% of the total project cost)

5. Sub-contract

6. Domestic Travel

7. Overhead (Maximum 10% of the total approved project cost); and

8. Contingency

5. A cost shall not be presumed to be allowable merely because the Development Agency actually incurred the cost, unless meets the test of relevancy, financial prudence, reasonability and relationship.

6. The Development Agency shall not charge any unallowable cost and the following costs are specifically considered unallowable

1. Bad debts

2. Interest (on loans, etc.)

3. Permanent Building

4. Contributions or donations

5. Fines, Legal expenses and penalties

6. Advocacy and business development

7. Losses on other contracts

8. Entertainment

9. Alcoholic beverages

10. Business organization cost such as cost of incorporation, re-organization and merger

11. Workshop/ Seminar

1. The funding will be through provision of grants to Industry

2. The project cost up to INR 10 Cr will be considered for funding subject to maximum of 90% of the total project cost in general.

3. Up to 100% funding may be considered on case to case basis.

4. Industry may work in collaboration with academia or research institutions.

5. The work involvement of academia cannot exceed 40% of the total projects cost.

6. The funding is linked with Milestones.

7. Fund will be released either advance against the bank guarantee of the same amount as collateral or reimbursement basis on completion of Milestone.

8. Subsequent instalments will be release on successful completion of Milestone.