upto 10 cr grant by technology development fund scheme€¦ · not allowed –permanent building,...

1Build-to-Specifications | Product Approval | Engineering Services | Software Development

Upto 10 Cr Grant by Technology Development Fund SchemeProcedure to receive the grant, benefits and responsibilities

V1

Abhishek Jain

http://tinyurl.com/tdf-drdo-aj



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Overview

21 April 2020 Technology Development Fund Scheme: Explanation

▪ Technology Development Fund in a nutshell

▪ Scheme flowchart

▪ The Website

▪ Rules and regulations

▪ Do’s and Don'ts

▪ General advice

▪ Closure

▪ Disclaimer – The views expressed are personal and are to disseminate information. For Govt policy read the TDF website annexures

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Technology Development Fund


▪ Pinnacle of “Make in India” initiative with Indian design and development

Administered by DRDO Headquarters

▪ One of the services generates requirement and monitors progress

▪ Sister DRDO lab as technology reviewer and consultant

▪ 90% of the product development cost is funded

▪ Financial Standing

This scheme is a Grant in Aid and not a soft loan

▪ Only for development of technology in Defence sector

No Collateral required, no equity to be given

Not to be confused with the Technology Development Board (TDB) of DST

▪ Now the scheme is part of Chapter 3 of DPP 2020 – very official3

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21 April 2020 Technology Development Fund Scheme: Explanation4

Flow Chart: TDF Scheme

Shortlist Technically Acceptable Proposal

Price Negotiation Award to one or multiple industry

Project Definition

Detailed Project Report Submission Price Bid Submission

Expression of Interest

Technical Proposal by Industry Budgetary Quotation

Feasibility Study (Optional)

Report Submission & Decision on Feasibility Budget Decision & Acceptance of Necessity

Feasibility Acceptance for Processing

Shortlist Technical Proposal

Shortlist Technically Acceptable Solution

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Eligibility & Preference


▪ Only Indian companies eligible

51% stake should be Indian

Indian incorporation certificate

Directors and CEO to be Indian

▪ Preference

MSME having a valid registration and an Udyog Aadhar Number

Start-up registered with DIPP

▪ In case MSME’s do not participate in the expression of interest project can be given to large companies

Some technologies may not be reserved for MSMEs – very few

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Website and Registration


▪ Website for the scheme is https://tdf.drdo.gov.in/

▪ First step is to register on the website https://tdf.drdo.gov.in/registration/

Assign a mobile number and email ID to registration

This will be used for sending emails and SMS

Fill initial details for login and then fill the company profile

▪ Profile needs to approved before participation in project

DO NOT wait for last minute registration and approval

https://tdf.drdo.gov.in/tutorial for instructions to register

▪ Entire scheme is paperless – no documents are required to be sent in any stage

Digital certificate is not required (Keep password safe)

Paper comes only at the time of signing of contract6

https://tdf.drdo.gov.in/

https://tdf.drdo.gov.in/registration/

https://tdf.drdo.gov.in/tutorial

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Register and Complete Profile


Mandatory to download project requirements

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Register as Technology Provider


Very good networking platform: Cannot quote for project with this registration

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Read the Annexures


▪ Visit the link https://tdf.drdo.gov.in/download

▪ Read Annexures A to G

Format of reports, rules of scheme given in the annexures

▪ SOP for TDF is given

▪ Bond form to be signed after sanction of project is given

▪ Agreement to be signed after the award of contract is given

▪ Industry awarded the development projects called the development agency (DA)

▪ Most important – read the evaluation criteria

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https://tdf.drdo.gov.in/download

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Feasibility Study


▪ Optional part of the scheme – usually done by services/DRDO

▪ Feasibility Study floated for industry

DRDO is not sure of participation in the project

Industry may not be capable of such a development

▪ Submission of online form with 15 questions to be answered

▪ Most questions are technical and gauge

Technical prowess and experience

Development approach

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Expression of Interest (EOI)


▪ A short document describing the project that may not contain all technical details

▪ Interaction with DRDO HQ allowed during EOI

Written representation on technical queries regarding project

Meeting at DRDO HQ to understand the project

▪ DRDO may call for general interaction at a convenient date

▪ EOI submission online with 15 questions to be answered & 5 attachments (as below)

Association of Person agreement (optional) – if 2+ partners quoting (format on TDF website)

Timelines – Gantt chart (preferable) or timelines to be provided for each milestone

Financials – Provide the budgetary quotation with each head written separately

Roadmap document – Enumerate steps for development, experience and accreditations

Response to Evaluation Criteria – Document on which marks are given11

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Aim of EOI Form


▪ EOI form is made to elicit technical response from the industry

This is not a tender where you just write “COMPLY ALL”

Industry needs to write what is “technically possible” and give calculations in support

▪ EOI document usually is short

Full requirement description is given in next stage – project definition document (PDD)

▪ Technically competent companies shortlisted for getting the PDD

PDD is confidential document

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Response to Evaluation Criteria


▪ This document gives the marking system for evaluation of EOI – 100 marks

60 marks on Design Capability

▪ Proposed configuration – 15 marks

▪ Approach to meet functionalities – 15 marks

▪ Indigenous design capability in subject field – 15 marks

25 marks on fabrication and manufacturing

10 marks Maintainability and life cycle support, timeline adherence in past projects

5 marks on commercial criteria

▪ 95% of the marks are given to technical and only 5 to the financials

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Composite Pump – EOI


▪ Zeus Numerix is the DA in this project

▪ EOI is given in image below – we wrote a 24 page response to this EOI

▪ DPR were multiple documents with SQR in 14 pages, Testing Appendix in 14 pages, desired performance curves 2 pages, project definition document 6 pages etc.

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Project Definition: DPR Submission


▪ Project Definition Document (PDD) gives with all the requirements

▪ In case of “Confidential” document it may be sent by post after signing NDA

▪ Detailed Project Report (DPR) to be submitted against PDD

Format given on the TDF website

▪ Main features of the DPR must be

Overview and scope of project

Infrastructure, operational and integration requirements

Estimated bill of material, preliminary CAD/drawing and timelines

Critical milestones/activities, Ways to achieve them, QA and project management plan

Cost Details for the project

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Award of Project


▪ DPR must be technically acceptable

▪ TDF may decide to award the project to one or more DAs

In past same project has been awarded to multiple vendors

▪ In case only one DPR is found acceptable, case is proceeded for the single party

In case of more DPRs found acceptable lowest bidder may take precedence

▪ Legal documents are signed at DRDO HQ and sanction order issued

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Comparison with Global Schemes


EASME SBIR STTR Yozma TDF

TRL 6→ 2→ 4,5 2→4,5 (Israel’s high tech cluster

development was

strongly related to the

development of a

local VC industry)

YOZMA is an equity

based funding in SME.

There are around 15

Venture capital was

created. Presently

around 60 approved VC

fund are working.

3→ 6 to 9

No. of Phases 3 3 (Small businesses explore

their technical potential and

incentive to commercialize)

3 (small business to formally

collaborate with a research

institution in Phase I and II)

Technology Development Fund will take

the project from TRL-3 and onwards

with the maximum funding of 9 Cr

through reimbursement on achieving

the milestones (maximum 5) and

duration normally two years.

Out of the 9 Cr , 1.5 Cr will be paid as

advance against bank guarantee.

SMEs may collaborate with academia

and the maximum work share of

academia is 40%

Phase 1

duration

Idea to concept (6 months) Establish the feasibility, and

commercial potential of the

proposed R&D efforts (6 mon)

Establish the feasibility, and

commercial potential of the

proposed R&D efforts (6 m)

Phase 1 funding €50 000 (39 Lac) fund $150,000 (1 Cr) $150,000 (1 Cr)

Phase 2

duration

Concept to Market-

Maturity (1-2 years)

continue R&D efforts of Phase

I (for 2 years)

continue R&D efforts of Phase I

(for 2 years)

Phase 2 Funding between €0.5-2.5 million

(3.9 Cr – 19.5 Cr)

normally doesn’t exceed

$1million (7 Cr)

normally do not exceed

$1,000,000 (7 Cr)

Phase 3

(Commercialize)

SMEs receives support,

training, mentorship and

access to risk finance

pursue commercialization

objectives resulting from the

Phase I/II R/R&D activities

pursue commercialization

objectives resulting from the

Phase I/II R&D activities

Phase 3 Funding No additional funding does not fund Phase III does not fund Phase III

IPR Results are owned by the

participant

Right to data/software

remains with recipient

Right to data/software, remains

with recipient

IPR will be either with DRDO or jointly

owned by DRDO and Industry

Purchase Power 0.762 1.0 1.0 3.876 17.782

Note: (Approximate funding in TDF adjusted to Purchasing power parity is €3.5 Million or $ 5.06Million) Conversion factor: [1 € = 78 INR ] [$1 = 70 INR ] [1 Shekel = 18 INR]

EASME – Executive Agency for Small and Medium-sized Enterprises; SBIR – Small Business Innovation Research; STTR – Small Business Technology Transfer

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Project Mentoring and Monitoring Group (PMMG)


▪ PMMG consist of members from the TDF scheme, Users, and DRDO Sister lab expert in that particular field

Other experts may be co-opted

▪ Regular meetings to monitor technical progress

▪ Support for getting data and testing of product

▪ Liaising with QA authorities for product approval

▪ Approval of milestone completion – leads to reimbursement

▪ Any other issue the industry is facing and can be resolved by PMMG

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Intellectual Property


▪ IP is jointly owned by the DRDO and DA

Only foreground IP is covered in the project

Background IP (IP Created prior to the project sanction) is held by respective agencies

DRDO will have royalty free license of any IP that is required for product functioning

▪ DRDO has marching rights over the IP

To prevent sale at exorbitant price

▪ In some special cases the entire IP may be owned by DRDO

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Consortium Approach


▪ Best approach to follow for MSMEs/Start-up is consortium approach

All defence products are multi-disciplinary

Find partner in various core areas and form an “association of persons”

▪ Agreement format given on DRDO TDF website

Divide work equitably and unambiguously

▪ Consortium approach usually reduces project cost and strain on the cash flow

▪ Requires a joint bank account statement for operation of project

▪ Zeus Numerix actively looks out for consortium partners

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Funding Heads


▪ Advisable to have separate bank account for the project

▪ Books have to be kept open for DRDO auditors to review

▪ Heads in which 90% reimbursement can be claimed

Manpower, consultant, travel/stay, equipment, sub-contracts, consumables, contingency

Contingency (includes overheads) can be at maximum 15% of the project cost

Not allowed – permanent building, entertainment, alcoholic beverages, seminar, legal cost

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Development Cost Reimbursement


▪ Project is divided in 5 milestones

1st milestone advance against BG and remaining delivery milestones

Delivery milestones must have unambiguous/tangible deliverables

BG returned after completion of second milestone at approx. 6 months

▪ DA to keep all bills and invoices separately

▪ Consortium partners to maintain bills/invoices properly

▪ Final bills to be approved by CA and submitted to DRDO TDF

Expense in any of the head must not increase the sanctioned amout

▪ Reimbursement directly paid to the ‘separate’ bank account

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Failure in Development


▪ God Forbid – what if the project fails

▪ Assessment of the expenditure in the milestone where failure has happened

▪ Reimbursement if the bills are found OK

In case excess money is paid by DRDO – DA returns the money

▪ No penalty on project failure

▪ There will be penalties for misrepresentation of facts and cheating as per MoD rules

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Application – Do’s and Don’ts


▪ Do’s

Involve technical people in writing the form – who can do math

Propose basic calculations/size/performance of the product to be developed

Write about company technical expertise and manpower in relevant area

▪ Don’ts

Copy paste of company profile or brochure is strict no-no

Bragging about company financial without technical write-up

Transfer of technology and manufacturing – strict no-no

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Project Completion


▪ Bulk Production Order

As per Draft DPP 2020 in case of product qualification all the bulk production order will be given to DA

Quantity cannot be reduced even if DRDO/DPSU claim to have developed similar product

The product developed will be marked IDDM; will have first preference in defence buying

Govt will promote (barring SCOMET list) export of this product

▪ No royalty to be charged by DRDO in case of export or bulk production order

▪ DPP Proposal

Scheme is included in Chapter 3 of DPP under innovation category

Given the highest priority in procurement

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Closure


▪ Very transparent scheme that is fully online

Concentrate on technical capabilities

▪ Do not wait for the EOI response to be filled on last day

Form is comprehensive and will require technical people to read up to fill

Form is designed to make you write something intelligent rather than just say COMPLY

▪ Do your registration today – assign mobile and email of person who will stay

All general notifications come via email and special ones via SMS too

▪ So to end, we can paraphrase the popular FOGG scent ad –

Paisa bhee diya, testing bhee kiya, Certification Assurance and hand-holding bhee diya, IDDM bhee banaya, aur kya chahiye!

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Contact Details


▪ Dr Nidhi Bansal – Director TDF

[email protected], 011-23007326

▪ Shri Arjun Kumar (Sc ‘E’) – [email protected]

▪ Shri Dipak Gupta (Sc ‘C’) – [email protected]

▪ Address

Director TDF, Technology Development Fund Scheme, Room No. 325, A-Wing DRDO Bhawan, Rajaji Marg, New Delhi-110011

▪ For difficulty in online submissions call 011-23007324

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mailto:[email protected]



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Project Online


▪ Use Of Composite Technology For Bottles Storing Hp/Lp Air And Other Gases (Co2, Oxygen, Nitrogen Etc) (N.19.02)

▪ Digital Instantaneous Frequency Measurement (DIFM) unit for Tarang Radar Warning Receiver (RWR) system (IAF.20.02)

▪ Development of Indigenous Digital Instantaneous Frequency Measurement (DIFM) unit for R118 Radar Warning Receiver (RWR) system (IAF.20.01)

▪ VLF Loop Aerial for Under Water Platforms (IN.20.01)

▪ HF-VLF Antenna Matrix for Under Water Platforms (IN.20.02)

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www.zeusnumerix.com

+91 9819009836

Abhishek Jain

[email protected]

Thank You !

upto 10 cr grant by technology development fund scheme€¦ · not allowed –permanent building,...

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