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 projects, which can be undertaken..

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. 

Formulation of Specifications

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

Issue of Expression of Interest (EoI) and soliciting response

Project requirement will be posted on web-portal for soliciting EoI responses through online Mode.

EoI will consist of brief technical requirement, all evaluation criteria, sub-criteria, etc including respective weight-ages accorded to each of them for assessing responses from EoI recipients.

Industry shall have the choice to respond either in their individual capacity as EoI recipients or as an AoP (i.e. Consortium) of Indian Companies/ Organization/Academia.

Selection of Development Agency

Assessment of EoI responses will be undertaken as per shared criteria. Evaluation criteria relates to the indigenous research, design and development capabilities including past experience, other relevant parameters and performance of EoI recipients as may be required. In case of AoP i.e. consortium, the assessment shall be carried out with specific reference only to the roles and responsibilities of Individual members as mentioned in their AoP Agreements.

Project Definition Document (PDD) will be issued to the selected industry (Development Agency). Development Agency shall then be required to submit Detailed Project Requirement (DPR) including Cost Estimates against the PDD. DPR shall be examined with specific reference to project milestones as described in the PDD against the evaluation criteria shared with Development Agencies.

Development Agency (ies) selected post the examination of their DPRs will be issued a Project Sanction Order along with an Agreement.

Upon signing the Agreement, the successful applicant will be issued a grant letter. 

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.