DRDO TDF — Grants Covering 90% of Defence Technology Projects up to ₹50 Crore
DRDO pays industry to build what the Services need
The Technology Development Fund was set up under Make in India to get Indian industry — especially MSMEs and startups — to develop defence components, products, systems and technologies. Service Headquarters list their requirements as projects; eligible companies propose to develop them; DRDO funds the development as a grant covering up to 90% of the project cost, and the developer keeps a real stake in the outcome.
The ceiling was raised in 2022 from ₹10 crore to ₹50 crore per project — some references, including the June 2026 DPIIT playbook, still carry the older figure. By the latest published count, 79 projects had been sanctioned with ₹334 crore of investment. Applications are digitised and accepted through the year on the TDF portal.
Terms of funding
| Item | Position |
|---|---|
| Project cost | Up to ₹50 crore considered |
| Funding share | Up to 90% of project cost as grant; industry brings at least 10% |
| Instrument | Grant, not equity |
| Consortium | Industry may partner with another industry or an academic institution |
| Mentoring | DRDO laboratory guidance and access to test facilities |
DRDO and the Services
DRDO administers TDF through a dedicated directorate. Proposals are evaluated by technical committees with the DRDO laboratory concerned and the sponsoring Service; an Empowered Committee sanctions. Milestones are reviewed by a project monitoring committee.
Every entity form, one ownership test
- •Public limited company, private limited company, partnership firm, LLP, one-person company or sole proprietorship registered under Indian law
- •At least 50% of shares owned and controlled by Indian citizens
- •DPIIT-recognised startups must be incubated at a Central or State Government-assisted incubator
- •Proposal must address a listed Service HQ requirement on the TDF portal
- •Not blacklisted by any Government department
What the TDF portal asks for
- •Certificate of Incorporation or registration; MoA/AoA or partnership deed; shareholding with citizenship of holders
- •DPIIT recognition and incubation letter from a government-assisted incubator (startups)
- •Technical proposal against the selected requirement: approach, TRL, work breakdown, milestones, deliverables
- •Project cost with the industry contribution and any consortium partner's share; consortium agreement
- •Financial statements for the last three years; bank details
- •Team credentials, prior defence work, facilities and test infrastructure
- •IP filings and security clearances if any
Questions founders ask about TDF
₹50 crore. The enhancement was announced in 2022 and is reflected on the TDF portal. Older summaries, including the DPIIT playbook, still show ₹10 crore.
Yes. TDF is unusual in accepting sole proprietorships and OPCs, subject to the Indian ownership test.
The developer retains IP with DRDO and the Ministry holding rights as defined in the TDF agreement; commercialisation to the Services follows the agreement's terms.
iDEX is challenge-based with smaller grants and a startup focus; TDF funds larger, requirement-driven projects with DRDO lab mentoring and is open to all Indian industry.