Frequently Asked Questions (FAQs)

1. Who can apply?

All Indian industries (Private Ltd. and Public Ltd. companies) can apply for support under TDDP. An Indian company is defined as one in which more than 51% of the ownership is held by Indian Citizens (including NRIs).

2. Is institute linkage essential?

Not essential. Industrial units can take up projects all by themselves. However, DSIR encourages industries to network with research institutions wherever capabilities and facilities exist. If it is a joint project of industry with an institute, then the project proposal has to be signed by both the parties. If industry is seeking only limited services and consultancy from the labs/institutes, then proposal should include a letter or offer from the Director of the institute or his authorized signatory indicating the scope of services and related payments. Similarly if the industry is proposing to upscale lab/bench level technology of national laboratories/research institutions then the related agreements already entered between the industry lab for development/utilization of that lab level technology will need to be enclosed in the proposal.

3. Are there any priority sectors/areas?

TDDP can consider projects for technology development and demonstration in any sector leading to industrially useful applications.

4. What kinds of projects proposals are not supported?

Projects proposals of following nature are generally not supported under TDDP:

1. Lab scale work at Institutions
2. Bench scale work at Industry
3. Technology import / commercialization
4. Minor improvements in Product / Process
5. Projects involving open ended research
6. Clinical Trials
7. Study oriented research work

5. What activities are eligible for support?

The support is towards research / design / development / engineering, software development, indigenous consultancy, prototype/pilot plant, testing and evaluation/certification, users trials / field trials, patenting etc essential for R&D in New Product / Process Development. Only activities taken up after release of administrative sanction are eligible for DSIR support.

6. What activities are not eligible for support?

Costs of following activities are not supported under TDDP:

1. Pre-project activities (including preliminary literature survey and patent search)
2. Permanent employee costs of industry
3. Travel costs of industry personal
4. Industry overheads
5. Contingency provisions
6. Payments for technology received from commercial organizations
7. Infrastructure facilities like land, building
8. Production equipment
9. Standard quality control equipment

7. What is the definition of ‘project’?

The projects under TDDP generally cover the activities taken up after successful completion of a lab scale/bench scale work either by industry and/or by lab/institution till completion of technology development and demonstration of the product(s) developed as commercially producible prototypes/or the process(es) at a pilot/demonstration scale before further commercialization of that technology. The project can be (a) for design and development of engineered prototypes, (b) for design, development and demonstration of pilot plant level process technologies for process development products such as in chemicals, fertilizers, metallurgical industry etc.

8. How much support one can expect?

The support would be generally limited to 50% of the project cost. Higher quantum of support can be considered, if supported by proper justification.

9. How my proposal will be evaluated?

The proposal will be initially screened by the Department. Thereafter, proposal will be taken up for consideration by a high level Technical Advisory Committee (TAC) of TDDP. Any project proposal whose project outlay exceeds Rs. 25 crore (or as per existing govt. guidelines) will subsequently be taken up for approval by Standing Finance Committee (SFC)/ Expenditure Finance Committee (EFC), chaired by Secretary, DSIR, if recommended by TAC.

10. Does one get an opportunity to explain his proposal?

The proposal should be self-explanatory giving all requisite details. However, after initial screening by the Department, if there is a need for further clarification/discussions, the applicant may be asked to provide these details and if required, will be given an opportunity to present his views, when the proposal is considered by the Technical Advisory Committee/Standing Finance Committee/ Expenditure Finance Committee.

11. Is there any last date for submission of the proposal?

Project proposals can be submitted throughout the year. However, proposals submitted by the last date of the latest advertisement shall be considered in the ensuing TAC.

12. How will the funds be released?

Subsequent to TAC recommendation, the first installment of funds will be released after administrative and financial approval of the competent authority in the department. The balance funds (except for last installment) will be released in installments based on the projected requirements for the project. Towards this, the company has to provide a six monthly schedule for funds requirement indicating their share as well as DSIR share sought. Last installment of grant will be released after project completion, after receipt of Project Completion Report, Audited Statement of Expenditure and Audited Utilization Certificate.

13. Do we have to give a bank guarantee?

DSIR support is given as grants-in-aid and hence there is generally no requirement for bank guarantee/ collateral guarantee etc.

14. What is ‘successful commercialization’ of the project?

A project will be deemed to have been successfully commercialized on the date when the industry undertakes first commercial sale of the product in their existing plant or a new producing plant installed on the basis of result of the TDDP project.

15. Do we have to pay royalty/lump sum?

Yes. Company will be required to pay lump sum royalties in five annual installments amounting to 1.3 times the amount received, after start of commercial sale/commercial production of the product developed with TDDP support. The lump sum royalty will be collected by NRDC on behalf of DSIR.

16. What is NRDC?

National Research Development Corporation is a Public Sector Enterprise of Government of India under DSIR, with expertise in transfer of technology.

17. Who owns the I.P.R.?

The firm and the collaborating agencies will own the I.P.R (as per the agreement they enter into). They will also indemnify the Government against any possible infringement of IPR.

18. Will the firm need to sell its technology to any other party?

The company will have the first right to utilize and commercialize the technology developed. In case the company does not commercialize the technology in a period of 4 years after completion of the project or does not exercise its option to commercialize technology within one year of completion of the project, only in such a case the technology will need to be assigned to NRDC for third party licensing. Revenues from such licensing will be shared with the executing agency as per the actual financial contributions in the project or as specific to the concerned project. In case of technologies, which are jointly developed/scaled up based on earlier lab/bench scale work of national lab, obligation and terms & conditions of earlier agreement, MOU will be taken into account.

19. What about Confidentiality?

All concerned in the project will ensure confidentiality as required.

20. Agreements/ Reports to be submitted?

Companies supported under TDDP will be required to sign an agreement with DSIR before sanctioning of the project. They will also be required to submit half yearly brief progress reports and audited statement of accounts. Brief progress reports and projection will need to be submitted to the Project Review Committee members 10 days before the meeting. At the end of the project, a Project Completion Report will have to
be submitted.

21. Is revision, pull-out possible?

There should not be any need for revision, while the project is underway. Revised proposal will be considered as a new proposal. Similarly, the company is expected to honour its commitments and complete the project as planned. If the company abandons the project, the Department will take serious note of it and the company will be required to return the money received along with 12% simple interest.

22. What additional benefits can we expect?

Customs Duty exemption is recommended for companies whose in-house R&D units are recognized by DSIR, for imported items coming under the project scope as per existing rules.

23. When do we shake-off hands?

Duration of the agreement is around 12 years to cover various commitments in the agreement such as payment of royalties, third party licensing, if any, etc.

24. Can we take financial support from any other agency/Govt. departments/bank?

Yes. All this information needs to be given in project proposal application.