Innovation and creativity is always required continuous efforts, dedication and passion. Technology has no exception for it. We have seen various examples in today’s life and now we are living in internet technology. Some time it is called e-governance or technology era.
A technocrat-entrepreneur is giving their precious time for creating a technology project & it can not be success unless it is commercialized. It also requires financial support for promotion and development for commercialization. Presently, the bank is generally financing the project at average rate of interest at 13% to 14% p.a. This rate of interest may be higher depending up on the risk involved in the technology project. Other Financial Institutions are having more or less same rate of interest. It should be noted that there is always risk in the technology project for its successful implementation.
The Indian government is recognizing & supporting the efforts of entrepreneur for their innovation as always. Looking to keep such object in the mind, the government of India has constituted the Technology Development Board (TDB) to promote development and commercialization of indigenous technology and adaptation of imported technology for wider domestic applications. The TDB is statutory body under the Technology Development Board Act, 1995.
The TDB is first of its kind of unique organization in the Government of India & further authorized to provide financial assistance, by way of equity or loan or grants to industrial concerns for commercialization of indigenously developed technologies or adapting imported technology for wider domestic applications.
Eligibility for funding
Presently, followings persons are eligible for TDB finance.
1. Companies registered under the Companies Act, 1956 (excluding sole entrepreneur/sole proprietorship/partnership firms)
2. 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
3. Applications from enterprises, with or without any, other partners (listed in 2 above), 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 (PATSER) of DSIR
Types of projects
The type of projects include–
l Development and commercialization of a new product/process/application through indigenous technology.
l Significant improvements in the existing product/process/application.
l Substantial quality upgradation, reduced material consumption, reduced energy consumption, cost reduction, improved competitiveness, improved ergonomics.
l Development and deployment of technology or design to satisfy existing occupational health and/or safety standards, or improve upon them.
l Development and deployment of technology or design necessary to satisfy domestic or foreign environmental requirements or standards current or anticipated.
l 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.
l Adaptation/modification to product/process which has been imported so as to make it suitable for wider domestic application.
l Replacement of imported raw materials/components with indigenous substitutes.
l Development of technology to meet the medical standards and proving socio-commercial viability of bio-medical equipment and devices.
SPECIAL FEATURES OF THE TDB
The TDB has separate guideline for financing of project and special features are as under:
1. Application
TDB is receiving the application throughout the year for financing. Application can be filed directly by industrial concerns. Full project report to be submitted with necessary documents and papers required the project.
5. Equity Participation
Generally, it is accepted up to 25 % of the project cost but subject to the TDB guideline.
6. Duration of Project & release of instalment
It should not be exceed more than three years. The funds are released instalment as per the requirement.
7. Security of loans
The loan and interest is secured through primary security, collaterals and guarantees.
8. Grants:
The TDB also provides financial assistance loan by way grants. It is sanctioned only in exceptional cases with the due permission of the Board.
9. Royalty
The TDB will charge royalty @ 0.50% on sales turnover of the product finance under the project of TDB.
10. Moratorium period
It is allowed for one year of payment of installment from the date of completion of project.
11. Evaluation criteria
TDB has different criteria for project evaluation and it includes scientific, technological, commercial and financial basis. Here, it requires proper & detailed justification to prove such creiteria.
12. Prohibit to finance/not to be financed by TDB
Following projects are not covered under the TDB guidelines;
l Refinancing
l Basic research and development
l If the industrial concern is sick
l Project out side India
l Any criteria as per the guidelines
There are specific listings for activities/expenditure which can funded as per the guideline. There is one special provision that no expenditure will be allowed for finance before the date of application to the TDB.
The industrial concerns are also applied to the banks/other financial institutions with TDB, specific permission is required from the banks/FIs in the form of no objection certificate.
Submission of applications
Applications and necessary supporting documents should be submitted to the Secretary, Technology Development Board as per format given the guideline. The application with supporting documents may be sent:—
The Secretary,
TECHNOLOGY DEVELOPMENT BOARD
Department of Science and Technology
Ground Floor, A Wing, Vishwakarma Bhavan,
Shaheed Jeet Singh Marg,
New Delhi - 110 067
www.tdb.gov.in
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