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Upto 10 Cr Grant by Technology

Development Fund Scheme
Procedure to receive the grant, benefits and
responsibilities

Abhishek Jain
www.zeusnumerix.com/downloads-category/resources/

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

Overview
▪ What Industry Wants
▪ Scheme flowchart
▪ The Website
▪ Rules and regulations
▪ Do’s and Don'ts
▪ General advice

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

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21 April 2020 Technology Development Fund Scheme: Explanation
What Industry Wants
▪ What I want from my Govt
 Give funding to develop product
 Mentor me while developing product
 Review the progress and pay me for progress made
 Test and approve my product
 Give me IP rights

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 Give me orders for future products
▪ Tolerate failure (it is possibility in R&D)

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21 April 2020 Technology Development Fund Scheme: Explanation
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

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 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 official
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21 April 2020 Technology Development Fund Scheme: Explanation
Flow Chart: TDF Scheme
Feasibility Study (Optional)

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

Feasibility Acceptance for Processing

Expression of Interest

Technical Proposal by Industry Budgetary Quotation

Shortlist Technical Proposal

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Project Definition

Detailed Project Report Submission Price Bid Submission

Shortlist Technically Acceptable Solution

Shortlist Technically Acceptable Proposal

Price Negotiation Award to one or multiple industry

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21 April 2020 Technology Development Fund Scheme: Explanation
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

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 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 contract
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21 April 2020 Technology Development Fund Scheme: Explanation
Register and Complete Profile

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Mandatory to download project requirements
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21 April 2020 Technology Development Fund Scheme: Explanation
Register as Technology Provider

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Very good networking platform: Cannot quote for project with this registration
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21 April 2020 Technology Development Fund Scheme: Explanation
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

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▪ Industry awarded the development projects called the development agency (DA)
▪ Most important – read the evaluation criteria

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21 April 2020 Technology Development Fund Scheme: Explanation
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

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 Technical prowess and experience
 Development approach

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21 April 2020 Technology Development Fund Scheme: Explanation
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)

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 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 given
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21 April 2020 Technology Development Fund Scheme: Explanation
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

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 PDD is confidential document

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21 April 2020 Technology Development Fund Scheme: Explanation
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

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 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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21 April 2020 Technology Development Fund Scheme: Explanation
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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21 April 2020 Technology Development Fund Scheme: Explanation
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

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 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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21 April 2020 Technology Development Fund Scheme: Explanation
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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21 April 2020 Technology Development Fund Scheme: Explanation
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

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▪ Approval of milestone completion – leads to reimbursement
▪ Any other issue the industry is facing and can be resolved by PMMG

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21 April 2020 Technology Development Fund Scheme: Explanation
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

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

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21 April 2020 Technology Development Fund Scheme: Explanation
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

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▪ Requires a joint bank account statement for operation of project
▪ Zeus Numerix actively looks out for consortium partners

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21 April 2020 Technology Development Fund Scheme: Explanation
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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21 April 2020 Technology Development Fund Scheme: Explanation
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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21 April 2020 Technology Development Fund Scheme: Explanation
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

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 Bragging about company financial without technical write-up
 Transfer of technology and manufacturing – strict no-no

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21 April 2020 Technology Development Fund Scheme: Explanation
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

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▪ DPP Proposal
 Scheme is included in Chapter 3 of DPP under innovation category
 Given the highest priority in procurement

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21 April 2020 Technology Development Fund Scheme: Explanation
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

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 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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21 April 2020 Technology Development Fund Scheme: Explanation
Thank You !
Abhishek Jain
+91 9819009836
abhishek@zeusnumerix.com
www.zeusnumerix.com

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