Defence Minister Rajnath Singh authorized an increase in financing for MSMEs and startups under the Ministry of Defence’s Technology Development Fund (TDF) plan. The initiative, which encourages the development of indigenous components, products, systems, and technologies, will now have a maximum project value of Rs 50 crore, up from Rs 10 crore previously. The increased funding is in accordance with the budget announcement and will help the government achieve its goal of self-reliance in the defence sector, according to the defence ministry.
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Key Points:
- Finance Minister Nirmala Sitharaman said in her budget address that 25% of the defence R&D budget will be allocated to private business, startups, and universities.
- The initiative aims to increase public and private sector engagement, particularly among MSMEs, in order to establish an ecosystem that will develop technical competence for defence applications.
- According to the scheme’s provisions, the financial assistance is delivered in the form of grants-in-aid to the industry. Projects with a cost of up to Rs 50 crore will now be evaluated for funding, but only up to 90% of the total project cost would be funded.
- The project is also confined to the creation of technologies or prototypes of products that may be used by the military, with a typical development duration of two years, according to the strategy.
Important Takeaways for All Competitive Exams:
- Defence Minister: Shri Rajnath Singh
- Finance Minister: Nirmala Sitharaman
- DRDO Chairman: Dr G Satheesh Reddy