TDP: Technology development board

The Government of India constituted the Technology Development Board (TDB) in September 1996, under the Technology Development Board Act, 1995, as a statutory body, to promote development and commercialization of indigenous technology and adaptation of imported technology for wider application. The board consists of 11 Board members. The Government reconstituted the Board in March 2000.

The TDB is the first organization of its kind within the government framework with the sole objective of commercializing the fruit of indigenous research. The Board plays a pro active role by encouraging enterprises to take up technology oriented products.

• TDB Recruitment Rule
• Service Agreement
• Loan Application Form
• Payment of R&D CESS
• Download the TDB Act
• National Award 2008

OBJECTIVE: Technology development board aims at accelerating the development and commercialisation of indegenous technology or adapting imported technology to wider domestice application.

The Board provides financial assistance in the form of equity soft loans or grants.

AN OVERVIEW: The Board has signed 137 agreements - 134 with commercial; enterprises and 3 with other agencies adding up to a total project cost of Rs. 1879.82 crores on 131 agreements as 6 have since been cancelled. The Government of India constituted the Technology Development Board(TDB) in September 1996, under the provisions of the Technology Development Board Act, 1995.

The Act enables creation of a Fund for Technology Development and Application to be administered by TDB. The Fund receives grants from the Government of India out of the Cess collected by the Government from the industrial concerns under the provisions of the Research and Development Cess Act, 1986, as amended in 1995. Any income from investment of the amount of the Fund and the recoveries made of the amounts granted from the Fund are credited to the Fund. The Finance Act, 1999, enabled full deductions to donations made to the Fund for income tax purposes. Of the total of Rs. 1,279.16 crore from R&D cess collection during the year 1996-2007, the Government has made available to TDB a cumulative sum of Rs. 482.42 crore over the period of 11 years (1996-2007). This works out 37.71% of the R&D cess collections made in 11 years.The mandate of the TDB is to provide financial assistance to the industrial concerns and other agencies attempting development and commercial application of indigenous technology or adapting imported technology for wider domestic application. The financial assistance from TDB is available in the form of loan or equity; in exceptional cases, it may be grant. The loan assistance is provided up to 50 percent of the approved project cost and carries 5 percent simple rate of interest per annum. In the alternative, TDB may also subscribe by way of equity capital in a company, subject to maximum up to 25 percent of the approved project cost. The financial assistance is provided during the commencement, start-up or growth stages of an industrial concern.
TDB accepts applications for financial assistance from all sectors of economy throughout the year. TDB does not levy any administrative, processing or commitment charges. The industrial concern desirous of seeking financial assistance from TDB has to apply in the prescribed format. A copy of the Project Funding Guidelines including the format of application can be obtained free of cost from TDB or by accessing TDB website (www.tdbindia.org).
During the year 2006-07, TDB signed 15 agreements with 14 industrial concerns and 1 Venture Capital Company. For the 14 industrial concerns, TDB agreed to provide loan of Rs. 39.11 crore as against the total project cost of Rs. 113.82 crore. Further, TDB committed Rs.15 crore for one venture fund for leveraging a fund of Rs. 60 crore.

As on 31st March 2007, TDB has signed 173 agreements (since its inception in 1996) with the total project cost of Rs. 2671.09 crore involving TDB’s commitment of Rs. 780.95 crore against which TDB has disbursed Rs. 690.80 crore.

For the successful commercialisation of a technology - based product by an SSI unit

The Technology Development Board introduced, from May 2001, another cash award of Rs. 2 lakhs to be given to a SSI unit that has successfully commercialised a product based on indigenous technology.

1. Cash award of Rs. 10 lakh each to -

(a) An industrial concern which has successfully commercialised an indigenous technology,

(b) The developer / provider of such technology. In-house R&D units can also be the developer/ provider of the technology.

2. Cash award of Rs. 2 lakh to -

DONATION:

An SSI unit which has successfully commercialised a product based on indigenous technology.

The Finance Act, 1999 provides hundred percent deduction for donations made to the Fund for Technology Development and Application being operated by the Technology Development Board.

The Act enables insertion of " the Fund for Technology Development and Application set up by the Central Government" under section 80G, sub-section (2), in clause (a) sub clause (IIIHI) of the Income Tax Act, with effect from the first day of April 2000.

The donations may be sent through Demand Draft or Cheque in Favour of "The Technology Development Board".

Funding guide lines:

For the development and application of indigenous technology in a dynamic economic environment, the Government of India enabled the placing of proceeds of the Research and Development Cess on the import of technology into a fund called the Fund for Technology Development and Application.

To administer the Fund, the Government also constituted a Technology Development Board on 1st September, 1996, under the provisions of the Technology Development Board Act, 1995