The Technology Development Board is the first organization of its kind within the Government framework with the sole objective of translating the fruits of indigenous research into commercial products or services.

The Board plays a pro-active role by encouraging commercial enterprises to take up technology oriented projects

Aims

Technology Development Board Aims at accelerating the development and commercialisation of indigenous technology or adapting imported technology to wider domestic application. The board provides financial assistance in the form of Equity, Soft loans, or Grants.

TDB's Objectives

The objective of TDB is to assist the industrial concerns and other agencies which attempt development and commercial application of indigenous technology or adapt imported technology to wider domestic applications.

Features of TDB Services

TDB provides equity capital or loans to industrial concerns and financial assistance to research and development institutions. The Board reduced the rate of simple interest form 6 to 5 percent per annum with effect from 13 May 2002. The loan carries a simple interest rate of 5% per annum.

With its pro active stance the Board:

• Emphasis on technology driven project in any sector
• Unique evaluation procedure through acknowledged experts.
• Full opportunity to the applicant to present the project proposal.
• Confidentiality as regards project documents / processes.
• Transparency in processing of project proposals.
• Handholding and trouble shooting.
• Encouraging industry to enter into hi- tech, hi- risk areas.
• Motivating industry to have firmer linkages with the R&D.
• Leveraging other similar funds of financial institutions and banks
• creates new job opportunities

Financial Assistance by TDB

Loan Assistance: TDB provides loan assistance to industrial concerns. The industrial concern may be an on-going one or a new one. The loan carries a simple interest of five percent per annum. TDB does not levy processing,administrative or commitment charges.

The quantum of loan will be, normally, limited up to 50 per cent of the approved project cost. The duration of the project should not generally exceed three years. The loan is payable in installments that are linked to risk-associated milestones in accordance with the terms and conditions of the loan agreement. The refund of the loan and payment of interest commence one year after the project is completed and the full loan amount is recoverable in five years thereafter. In some cases, TDB may have nominee director(s) on the Board of Directors of the assisted industrial concern.

Equity Subscription: TDB may also subscribe by way of equity capital in an industrial concern, on its commencement, start-up and/or growth stages. The equity subscription is decided by the full Board of TDB. It is up to 25 per cent of the approved project cost provided such investment does not exceed the capital paid-up by the promoters. The pre-subscription conditions include that the promoters should have subscribed and fully paid up their portion of the share capital.

TDB has a right to have nominee director(s) on the Board of Directors of the company. TDB, in its discretion, may divest its shareholdings in the company after three years of completion of the project or after five years from the date of subscription. The first option to buy back the shares rests with the promoters.

TDB has recently joined hands with two major private equity investors, ie APIDC VCF and UTI to invest in the equity of startups and companies in the growth phase. TDB has contributed Rs. 30 crores to the APIDC VCF (BioTech fund) and Rs. 75 crores to the UTI Ascent India Fund.

Grants by TDB: TDB may also provide financial assistance by way of grants and/or loans to industrial concerns and R&D institutions engaged in developing indigenous technology. TDB is not to be considered a substitute for funding by the Government or other appropriate institutions. The sanction of grants is decided by the full Board of TDB and is sanctioned in exceptional cases. Royalty may be levied in case of grant assistance.

The Board has signed 141 agreements - 137 with commercial; enterprises and 4 with other agencies adding up to a total project cost of Rs. 2043.89 crores on 141 agreements. The board has committed to provide financial assistance of Rs. 662.94 crores of which it has disbursed Rs. 526.41 crores till 31st March 2005.

The Board has also instituted two National Awards for the successful commercialisation of indigenous technologies as follows:

• Cash award of Rs.10 lakhs each to
  • An industrial concern, which has successfully commercialised technology
  • The developer/provider of such technology.
• Cash award of Rs. 2 lakhs to
  An SSI unit which has successfully commercialised a product based on indigenous technology.

Awards will be given annually on Technology Day, i.e. 11th May every year.