DRDO TDF — eligibility, benefit, norms, documents (Central)

§1Who it is for

Indian industry, especially MSMEs and startups, working with academia/R&D institutions on defence and dual-use technology

MSMEs/startups with an academic partner developing a defined component or sub-system technology for DRDO/Services

Firms that want sole ownership of IP or cannot give bank guarantees

Proprietorships, partnerships, LLPs and private limited companies owned and controlled by resident Indian citizens
Entities with foreign investment/partnership not exceeding 49%
Consortium / Association of Persons allowed — maximum 3 individuals/companies
Only Indian vendors including consortia are eligible; non-profits are not eligible
Must register on the portal as 'industry' — MSME or Startup India recognition certificate is mandatory for this
Nascent-startup projects (below Rs 1 crore): startup less than 3 years old, incubated in a government recognised/assisted incubator that is at least 2 years old and has supported at least 25 startups

Projects up to Rs 10 crore: funding up to 90% of total project cost in general (up to 100% case-to-case)
Projects above Rs 10 crore up to Rs 50 crore: up to 70% of total project cost in general (up to 100% case-to-case)
Development period typically not more than four years
Milestone-based funding; advance released against a bank guarantee of equal amount (except Government-owned institutions)
Later instalments against project update report, utilisation certificate & statement of expenses, CA certificate, PMMG recommendation and Technical Committee approval
Cost heads in price bid: academia share max 40%, overheads max 10%, contingency max 3% of total project cost; incubator payment max 20% for nascent startups
Separate books of account and independent bank account; DRDO access to books
IPR jointly owned by the Development Agency and DRDO; prototypes/deliverables vest with the user
Prices inclusive of GST

Tick each one as you get it ready.

MSME or Startup India recognition certificate (for 'industry' registration on portal)
Detailed Project Report (DPR) in TDF format with technical and price bid (bids via DefProc / e-procurement for DPR stage)
Consortium agreement as per Annexure I of Appendix A to SOP (if applying as consortium)

For each later instalment: Detailed Project Update Report, Utilisation Certificate & Statement of Expenses, Chartered Accountant certificate

1
Register at tdf.drdo.gov.in as 'industry'
2
Respond to Feasibility Study / RFI calls, then submit DPR against the RFP within the bid window (DefProc portal)
3
Suo-moto proposals accepted via the suo-moto window
4
Evaluation → selection of Development Agency → sanction → PMMG-monitored milestones

High grant share: up to 90% of cost for projects up to Rs 10 crore — TDF guidelines
No fee charged by DRDO/DTDF for applying or award — TDF FAQ
Proprietorships and partnerships eligible, not just companies — TDF FAQ
Separate small (<Rs 1 crore) calls reserved for nascent startups — TDF FAQ

IPR is jointly owned with DRDO — TDF guidelines
Advance needs an equal bank guarantee — TDF guidelines
Official pages disagree: TDF FAQ still says project cost will not exceed Rs 10 crore and 2 years, while the newer guidelines say Rs 50 crore and 4 years — confirm in the RFP
MP-IDSA (Nov 2023) noted no new project seemed to have got AoN under the enhanced Rs 50 crore powers by then

Eligibility check, DPR and application file — ask us on WhatsApp.

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.