Standard Operating Procedure (SOP)
For Implementing
Technology Development Fund (TDF) Scheme
Defence Research & Development Organisation
Ministry Of Defence, Government of India
April 2016
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
Table of Contents
1.
Introduction: Technology Development Fund Scheme ................................................................ 6
2.
Objective ............................................................................................................................ 6
3.
Focus Areas ......................................................................................................................... 6
4.
Type of Projects for Funding Support .......................................................................................... 6
5.
Applicant .................................................................................................................................... 7
6.
Pattern of Assistance .................................................................................................................. 7
7.
Empowered Committee .............................................................................................................. 9
8.
Technical Committee ................................................................................................................ 10
Proposed Basic Structure of TDF Scheme .......................................................................................... 11
9.
Implementing Technology Development Fund (TDF) Scheme .................................................... 11
10.
Program Preparation and Launch: ........................................................................................ 12
10.1
Identification of Technologies .............................................................................................. 12
11. Invitation of Proposals ...................................................................................................... 14
12. Receipt and Evaluation of Proposals .................................................................................. 14
13. Awarding & Contracting ...................................................................................................... 17
14. Monitoring of Programme .................................................................................................. 18
Process Description .................................................................................................................. 18
16. Project Closure &Post Completion Monitoring ............................................................................ 21
Process Description .......................................................................................................................... 21
17. Project Completion / Closure ...................................................................................................... 22
18. Accounting/Reporting Process for Grants Provided to Satisfactorily (Successfully) Completed
Projects: ................................................................................................................................... 23
19. Other Project Closure Options for Defunct/Defaulted Projects.................................................... 23
20. Premature Closure of Project .............................................................................................. 23
21. Recovery of Grant Amount for Prematurely Closed Projects:............................................... 24
22. One Time Settlement (OTS) for Grant .................................................................................. 24
23. Database .................................................................................................................................... 25
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
23.1 Project Success Report (PSR) ..................................................................................................... 25
23.2 Project Failure Report (PFR) ...................................................................................................... 25
24. Asset Management ..................................................................................................................... 25
25. IPR Management ........................................................................................................................ 26
PROGRAMME MANAGEMENT APPROACH - TDF ............................................................................... 27
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
Typical Flowchart of Activities (for a RFP cycle) Technology
Development Fund
Services (Tri- Services and IDS) will give their respective Futuristic
Technical Developmental requirements to DRDO
Technical Committee will identify the
technology required for the development of
product required by the Services including
any special requirement projected by
DRDO for Services
An identified agency by DRDO (hereafter called agency)
will provide detailed Techno-strategic information through
development of “Technology Knowledge Grid” Report in
consultation with Business Chambers & other Stakeholders
(DRDO will share the inputs to agency as received from
the Services to initiate this activities”
Technical Committee will do technology gap
analysis and find the technology areas for
development with Private/ Public sector
especially MSMEs and prioritize it
An agency will design the Request for Proposal (RFP),
Website (launch & maintenance as well), FAQs & will do all
sort outreach / promotional activities including Matchmaking,
Partnership Development Activities (PDA) etc.
16 weeks
Empowered Committee will approve the
RFP before launching on TDF Website.
TDF website will have links on several sites
like DRDO, MOD, DDP and final landing on
TDF Site.
Technical Committee will study the inputs and apprise the
Empowered Committee to obtain formal approval for the
Projects to be funded along-with the mechanism to Monitor
& Mentor the Projects. Empowered committee gives
approval.
DRDO# will notify the successful applicants
regarding the “Monitoring & Mentoring”
mechanism as decided by the Empowered
Committee which will be implemented by
an agency.
The Consolidated Recommendation of
PoE will be submitted & presented to the
Technical Committee by Agency along with
“On Site “Due-diligence report for the
Projects.
An agency will assist DRDO in preparing Legal Contract
document. Including the necessary relevant annexures as
required.
7 weeks
DRDO# will sign letter of agreement with
successful participants and sanction 15%
of fund to participants through ECS and
rest amount will be released on achieving
milestone through periodical reviews
5 weeks
An agency will formulate Panel of Experts (PoE) for Technical, Financial,
Intellectual Property Right related evaluation of project proposals in consultation
& guidance of Technical Committee and will conduct the Meeting of PoE after an
On-site verification by AN AGENCY of the applicant’s premise & nature of work.
An agency will formulate a dedicated Project Monitoring &
Mentoring Group (PMG) for periodic review and evaluation
of the Progress of the projects in consultation with DRDO
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
Technical Committee will review the Progress of
the Projects based on the report and
recommendations of the PMG and will authorize
release of funds on reimbursement basis against
actuals to the contractor on achieving the agreed
milestones as per the contract. The same will be
conveyed to Empowered Committee for
information
Empowered Committee based on the
recommendations of Technical Committee will
approve Closure/ Foreclosure including funds
write-off/ Project extension
An agency to Technically & Administratively conduct
“On Site Progress Review” of individual projects
through PMG as per the decided schedule and submit
the report to the Technical Committee.
An agency will assist in preparing evaluation
report, write-off report/ one time settlement/
sale of asset etc. Empowered Committee will
take the final Decision on exercising the option
and direct the concerned agency of DRDO to
take necessary action.
DRDO will have all government licensing
rights. IPR will be jointly held by DRDO
and principal investigator.
$ An identified agency by DRDO hereafter called as “Agency”
# Director/ Secretary Technology Development Fund Board
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
1. Introduction: Technology Development Fund Scheme
Defence Production Policy, promulgated in 2011 by the Ministry of Defence provides for
setting up a separate fund for making necessary resources available to public/private
sector including SMEs as well as academic and scientific institutions to support
Research and Development of Defence equipment/systems enhancing cutting edge
technology. In pursuance of this Policy, the Government of India has announced for
setting up a ‘Technology Development Fund (TDF)’ in the Union Budget 2014-15.
2. Objective
To create an ecosystem for enhancing cutting edge technologies for Defence
applications and/or development of product/equipment with such technologies by
providing financial assistance in the form of ‘Grants’ to public/private sector including
SMEs as well as academic and Research and Development institutions for carrying out
innovation, research and development. The grants are only a means to achieve that
end.
3. Focus Areas
A Technical committee constituted under CC R&D (TM), DRDO having Representatives
of Services HQ (SHQs) and Industry representatives including MSME shall invite
requirements from the Service HQ including DRDO and also take inputs from LTTPP as
well as the technology knowledge grid provided by AN AGENCY and identify the list of
technologies for Defence applications and/or development of product/equipment with
such technologies. The committee shall also prioritize the technologies/products to be
undertaken in a phased manner through the scheme.
4. Type of Projects for Funding Support
4.1 Based on the focus areas identified by Technical Committee, specific projects for
delivering product/technology as identified by Technical Committee in a time bound
manner will be provided funding support under TDF Scheme. The following nature
of products/technologies will be covered:
i.
Significant up-gradation/improvements/ further developments in the existing
products/process/application/upgrades, in terms of reduced material
consumption, improved functioning, improved quality, reduced energy
consumption resulting in overall cost reduction.
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
ii.
iii.
Technology readiness level up-gradation from TRL3 onwards to realization of
products as per Services requirements.
Development of futuristic technologies/innovative products which can be
useful for the Defence applications in future.
5. Applicant
5.1 The lead applicant should be an Indian company, registered in India under the
Indian Companies Act 1956 with a minimum of 51 percent Indian ownership.
5.2 Sole proprietors, partnership firms and subsidiaries of firms headquartered and
owned outside India are not eligible for support under this programme.
5.3 The applicant having foreign investment will have to be “owned”and “controlled”by
resident Indian citizens and/or Indian companies which are ultimately owned and
controlled by resident Indian citizens as per the FDI policy of the GoI.
5.4 The lead applicant may partner with other Indian companies (from both the public
and private sectors) and in such project consortium, each individual applicant should
have a minimum of 51% Indian ownership.
5.5 The intent of Technology Development Fund (TDF) is to promote tangible outcomes
which can be used for applications in Defence services. It is an industry-led industry
driven initiative, therefore composition of the incumbent company/consortia should have
at least 60% of
work-share contribution from the Industry whereas a maximum of
40% contribution in terms of technology transfer/guidance can be from
academic/research institutions.
6. Pattern of Assistance
6.1 Assistance under TDF will be by way of ‘Conditional Grant’ (reimbursable in
nature) or Recoverable Grant (to be returned in form of Royalty, if and only if
the project is successful and to be returned after one year of gestation period
post the approved tenure of the project) on Milestone basis as per the legal
agreement to be signed with DRDO (Director/ Secretary TDF Board) and the
beneficiary company(s).
6.2 In case if the project is unsuccessful, requiring pre-mature closure and the amount
is non-recoverable, then an agency engaged by DRDO will prepare a proposal and
discuss the same with Nodal Officers of DRDO. Based on the discussions, AN
AGENCY may advise Project Monitoring & Mentoring Group (PMG) to undertake an
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
on–site review of the project and submit recommendations regarding the completion
status of the project in due course of time. AN AGENCY will accordingly develop a
Report on Technical Closure and submit to DRDO. It is entirely at the discretion of
the Empowered Committee based on the recommendations of the Technical
Committee and PMG to take the final decision in this regard and thus term the
project as unsuccessful. In case the project is declared as unsuccessful, the Grant
can be considered for Write–off / One–Time–Settlement (OTS – partial or full) as
appropriate. In case of “Write Off” of the Grant, a request in form of undertaking will
be required from the Authorized Personnel (backed by the Board Resolution) of the
company on the Letter head describing the valid reason of failure.
6.3 In some cases milestone-based advance may be given to Companies and
R&D/Academic institutions. However, Companies and ‘Other than Govt-owned’
R&D/Academic institutions shall be given advance against bank guarantee of equal
outstanding amount. The bank guarantee condition may be waived by the competent
authority on case to case basis. Government-owned academic/R&D institutions
need not submit any bank guarantee for seeking advance.
6.4 After issuance of the Grant Letter by DRDO (Director/ Secretary TDF Board) &
signing of Legal Contract with DRDO (Director/ Secretary TDF Board) the payment will
be based on Milestone based reimbursement mode.
6.5 The projects up to INR 10 Crores will be considered for funding subjected to
maximum of 75% of the total project cost under the scheme. The duration of the project
will normally be 2 years, which can be further extended based on the progress &
requirement. The scheme will be limited to development of technologies or prototype of
product having potential use for the Services.
6.6 The percentage of assistance under the TDF scheme will be as follows:
i.Indian companies - up to 75% of the project cost in general however this may be
enhanced up to 90% of project cost on case to case basis.
ii. In case of collaboration between R&D /Academic institution and the company, the
share of R&D /Academic institution shall be funded to the extent of 100% and the share
of company shall be funded to the extent of 75% in general however this may be
enhanced up to 90% of project cost on case to case basis.
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
7. Empowered Committee
7.1 Composition of Empowered Committee
The Empowered Committee with overall authority of TDF shall be set up under the
chairmanship of Secretary (DRDO). The Empowered Committee composition will
include:
Secretary DDR&D
Chairperson
Secretary (DP)
Member
Add FA & JS (DRDO)
Member
CISC
Member
VCOAS
Member
VCAS
Member
VCNS
Member
JS(SME)
Member
CC R&D (TM) DRDO
Chief Executive, AGENCY
Secretary TDF DRDO
Member Secretary
Member
Permanent Invitee
The Empowered Committee is the apex body governing the Technology Development
Fund(TDF).
7.2 Roles and Functions of Empowered Committee
• Approval of project proposals received after due recommendation by the technical
Committee.
• Approval of time overruns beyond the approved duration of the project.
• Approval of closure/ foreclosure of the projects based on the recommendation of the
technical committee including funds write-off to private sector/ SMEs.
• Approval of the goal/ objective revisions on the recommendation of Technical
Committee.
• The Committee will normally meet twice in a year or as and when required.
Note: To facilitate expeditious clearance of proposals, a standing committee may be
formed by the Empowered Committee.
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
8. Technical Committee
8.1 Composition of Technical Committee
The Technical Committee constituted will be chaired by CC R&D (TM), DRDO. This
Committee will participate in identification of focus areas under a particular RFP.
The Technical Committee composition will include:
CC R&D (TM), DRDO
Chairperson
Representative from Army HQ
Member
Representative from Air HQ
Member
Representative from Naval HQ
Member
Representative from Integrated Defence Services
(IDS)
Member
Representative of Ministry of Micro, Small & Medium
Enterprises (MSME)
Member
Representative of DDP
Member
IFA(R&D)
Member
Representatives of Industry Associations (2 Nos)
DRDO Experts
Member
Member
Chief Executive, AGENCY
Member
Secretary TDF DRDO
Member Secretary
8.2 Roles and Functions of Technical Committee
•
•
•
•
•
•
Identification of product/ technology for funding under the TDF scheme to be
executed through Indian public/ private sector specially SMEs.
Prioritization of technologies/ products in a phased manner.
To indentify the nature of technology i.e. sensitive or otherwise, developed
during the course of development of product/ technology.
Recommend suitable technology/ product with proposal to Empowered
Committee.
Periodic monitoring and review of on-going projects.
Committee will meet once in a three months or as and when require
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
•
To act as a nodal body and provide the requisite timely approvals/support to
AN AGENCY to efficiently manage the TDF scheme.
Note: To facilitate expeditious clearance of proposals, a standing committee may
be formed by the Technical Committee.
Proposed Basic Structure of TDF Scheme
Technical Committee Chaired
by CC R&D (TM), DRDO to
identify list of Technologies
required for Industrial R&D
programme
Lead Industry from
India (Academic /
R&D Institution may
join)
DRDO provides
Grant up to 75% of
Industry share &
100% of
Academic/R&D
Institute share, with
a cap of Rs. 10
Crore perproject
Technology
Development
Project
Output to be linked to
Procurement Process of
TDF end user
9.
Implementing Technology Development Fund (TDF) Scheme
It is suggested that following Multi-Pronged Approach may be considered for TDF
scheme to be implemented by DRDO with technical & administrative support and
facilitation by an agency.
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
9.1 Programme Preparation: (Technology/Focus area identification, Database
creation, study on Technology Knowledge Grid Report on identified areas, Development
of Website for TDF, Designing of RFP documents) and Launch.
9.2 Invitation of Proposals: Outreach, Discussion/Networking with Industry,
Matchmaking for appropriate technologies, Partnership Development Activities (PDA)
and handholding in formulation of Project Proposals.
9.3 Receipt and Evaluation of Proposals: Formulation of Panel of Experts/Technical
Committee, Evaluation of Project Proposals (Technical, Financial& Intellectual Property
Right).
9.4 Award of Grant of Project to successful applicants
9.5 Monitoring of Programme of the awarded projects to ensure the successful
completion, meeting the desired output of the end user (as decided in the Technical
Committee).
9.6 Monitoring Post Completion of the programme to ascertain the impact and create
a database of the technologies and its providers.
Technology development fund implementation scheme discussed in details in the
following paragraphs.
10.
Program Preparation and Launch:
10.1
Identification of Technologies
10.1.1 Since, India is the biggest importer of Defence products in the world, although
with a very capable SME sector to deliver technologies at requisite levels. There
exists disconnect between the Industry and the Defence forces.
10.1.2 Therefore, there is a need to outsource the Research and Development work of
high technology to private sector that should be on the lines of parallel
development for which the cost should be shared.
10.1.3 It is of outmost importance to create a technology knowledge grid, encompassing
the technologies, its providers, Global standards related to the technology and
the financial aspects so involved. A comprehensive grid shall entail a pointed
approach that will address the needs in the emerging Defence sector in near and
future terms.
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
10.1.4 The aim is to ensure Indigenous Research, Design, Development and Production
of capabilities sought by the Defence Forces in prescribed timeframe while
optimally utilizing the potential of Indian Industry. The technology gap analysis
will help in identifying the requisite technologies and will lead to Self-reliance in
Defence Production.
10.1.5 Stakeholders such as the Tri-services, IDS, Defence Procurement, R&D
experts in the field of Defence are the apt representatives to identify their
respective Futuristic Technical Developmental requirements to DRDO with an
immediate, short-term and long-term view of the Defence sectors.
10.1.6 Upon receipt of the Technical requirements received from Defence Services,
DRDO (identified agency in DRDO on directives of the Technical Committee) will
share the inputs with AN AGENCY to initiate developing a detailed Technostrategic information report “Technology Knowledge Grid” which will be
developed in consultation with Business chambers & other stakeholders.
10.1.7 In order to promulgate effective Technology Knowledge Grid activities such as
primary/secondary research/industry interaction/requirement analysis & gathering
will be undertaken.
10.1.8 Based on the Technology Knowledge Grid provided by AN AGENCY to DRDO, a
Technology gap analysis will be done by DRDO to find the technology areas
for development with Private/Public sector including MSMEs and prioritize it.
10.1.9 The Technical Committee will be the authority to identify and prioritize the
technology for development of product/technology required by Services based on
the current need and the futuristic view of the Defence sector.
10.1.10
On the sidelines, AN AGENCY will create appropriate database which will
be crucial in addressing the target audience and therefore having an effective
communication plan in place. It plays a pivotal role that will provide a compass to
navigate and address the right stakeholders, post identification of the selected
sub-sectors an exhaustive database will be created that will entail large and
heavy industry/MSMEs/consortia for a given technology/sub-sector. Database in
the form of previous applicants to similar programs, CII database, database from
other industry bodies such as Sector specific industry associations,
ASOCHAM,FICCI, details of companies from NSIC, state MSME association will
be collated.
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
11.
Invitation of Proposals
11.1 A robust and effective communication/reach-out plan for the TDF will be designed
by AN AGENCY. This communication plan will encompass four major aspects of
reaching out to target audience, engaging in a personalized dialogue, sharing scheme
related information and converting them into applicants.
11.2 Promotional material such as an illustrative brochure/flyer targeted towards the
recommended sub-sectors with the snapshot of TDF will be unveiled at the launch of
the program. The brochure/flyer will contain eligibility, funding mechanism, evaluation
process and timelines of the TDF.
11.3 In order to ensure the transparency in the system, the activities related to the
application submission, promotion and dissemination, a Website will be designed by AN
AGENCY for TDF and after obtaining approval on RFP from DRDO, the call will be
launched on TDF website with a provision of a parallel link on DRDO, MoD website.
11.4 The webpage will be comprehensive in terms of program information, application
procedure and will contain options for personalized engagements like a dedicated
helpline, online chat, Frequently Asked Questions (FAQs) and contact details of
the respective officers managing the fund.
12.
Receipt and Evaluation of Proposals
12.1 The application submission will ONLY be through the online mode on TDF
website. As part of the exhaustive promotion strategy, web links from DRDO, MoD and
other Ministry websites will be provided that allow as a landing page on the TDF
website, enabling application and submission process.
12.2 Help/FAQs will also be available apart from the engaging options of online
chat/helpline. Simplified and Standardized set of forms as part of documentation will be
developed and provided to all applicants. The following set of documents will be
required to apply for TDF:
•
•
•
Detailed Application Form (Consisting various section including
Technical/Financial/ IP justification of proposed Technology development,
etc).
Format for Executive Summary by the Applicants
Template for Presentation
12.3 Upon the submission of the application, AN AGENCY will initiate the evaluation
process which will involve constitution of Panel of Experts (PoE) in consultation with
Technical Committee under the RFP call and initial screening of the proposal,
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
comprising of technical/financial/IP related due-diligence to assess the merit of the
proposed project /technology of the individual application.
12.4 A different Panel of Experts (PoE) may be constituted for each RFP call depending
on the specific techno-strategic requirement of the identified project. The requisite level
of evaluation in the form of a brief report will be prepared and would go as an input to
the Panel of Experts (PoE).
12.5 The Panel of Experts (PoE)will be Chaired by a Technical Expert and the indicative
composition of PoE will include the nominated subject matter expert i.e. Independent
Technical - Subject Matter Expert from each focus sector of the RFP, Financial Expert,
DRDO nominated officials i.e. SHQs/Tri-services, AN AGENCY Officials will participate
in evaluation of all the proposals under the particular RFP and review the applications.
The indicative composition of PoE includes:
Particulars
Independent Technical Experts (as per subject area)
Financial Experts (common for all projects)
DRDO representative
AGENCY Officials (common for all projects)
No of experts
2
1
2
2
12.6 Roles and Responsibilities of PoE
PoE will be primarily responsible for:
i. Evaluation and Grading/Rating of all project proposals
ii. Providing guidance through AN AGENCY to the project applicants for suitable
revisions / modifications in the applications in terms of Technical and Financial matters
as appropriate.
12.6.1. The PoE comprising of Technical & Financial experts will validate the findings as
claimed by applicants, will evaluate the project for its suitability/viability. AN AGENCY
will send a Non-Disclosure Agreement (NDA) to the Experts of PoE. Upon signing of the
NDA by PoE Experts, AN AGENCY will subsequently, send the project proposals with
initial site verification report, along with the evaluation format, to them.
12.6.2. AN AGENCY in consultation with Nodal Officer - DRDO, will schedule a PoE
Meeting where shortlisted Project Applicant/Partners will be invited to make
presentations on their respective projects to the PoE.The consolidated recommendation
of PoE will be submitted and presented to DRDO by AN AGENCY along with “On Site”
Due-diligence report for the projects.
12.6.3. A standard presentation template to all the invited Project Applicants/Partners
will be sent in advance, at least 15 days prior to the PoE meeting.
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
12.7 PoE comprising of Technical & Financial experts, which validate the findings as
claimed by applicants, will evaluate the project for its suitability/viability. AN AGENCY
will submit the comments/inputs/reports of PoE to Screening Committee. Upon the
decision of the Technical Committee, the reports will be presented to Empowered
Committee for final approval.
12.8 A Due-diligence Committee constituted by AN AGENCY to review projects at site
for further technical, financial and IPR related evaluation of project proposals in
consultation and guidance of DRDO. Once the project starts, the due-diligence
committee will be termed as Project Monitoring & Mentoring Group (PMG), who will
review the project periodically based on it’s deliverables/milestones. The constitution of
the Due-diligence/ PMG includes:
Particulars
Technical Experts from SHQs/Tri-services (as per
focus area of funded project)
Technical Consultancy Organizations
Technology Development & Promotion Centres
Financial Institutions (e.g. IDBI, IFCI, SIDBI, SBI and
other public sector banks)
State
Industrial
Development
&
Investment
Corporations and State Finance Corporations
No of experts
2
1
1
2
1
12.9 DRDO to conduct Technical Committee meeting for reviewing and shortlisting the
project proposals received under each RFP cycle, taking the inputs of PoE& PMG into
active consideration. Upon the decision of the Technical Committee, the reports will be
presented to Empowered Committee for final approval of the projects to be funded
along with the mechanism to Monitor and Mentor the projects.
12.10 Criteria for Project Evaluation:
These are the guidelines to be followed by the Panel of Experts (PoE), Screening
Committee and the Empowered Committee at various stages during the evaluation
phase:
i.
In case of multiple projects contesting to apply under a similar category of
technical need/requirements as provided by the Services, the selection of a
project will be based on the “Competence Level”
assessment
of
the
company, the depth of technical clarity and feasibility analysis provided by the
applicant.
ii.
The project will be assessed based on it’s merit considering various facets
e.g. Technical know-how of the applicants, financial viability (cost
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
benefit ratio) and innovation unlike the usual procurement process of
selection based on L1. A milestone based review conducted by the
monitoring committee will form a basis of timely funding to be provided to the
applicant.
iii.
Projects will be awarded on basis of superior design and technical capability
of the team/organization involved.
iv.
Projects proposed to be developed with specific relevance to the focus
areas/needs/requirements identified as per the Screening Committee
recommendation will be given preference during selection. Weight age of
factors on technical/financial/IP related parameters will be decided by the
Screening Committee.
v.
In case of consortium of partners proposing a project, an appropriate legal
document needs to be created to ensure active participation (both in terms of
work and finances) and extent to which the participants share in the research,
process and product development, as well as the benefits to be derived by
each participant during project as well as during subsequent phase of
commercialization.
13. Awarding & Contracting
13.1 Based on the approval by the Empowered Committee, the results to all successful
applicants will be communicated. A Conditional Offer letter signed by suitable
representatives (Director ER&IPR/ Director/ Secretary TDF Board) from DRDO will be
released to the successful project applicants. A separate communication on the
evaluation results to those project applicants who have not been recommended for
support under the particular RFP will be done.
13.2 After receiving confirmation on the Conditional Offer letter from the Project
Applicant/Partners, AN AGENCY will assist DRDO in preparing Legal Contract
document including the necessary relevant annexures.
13.3DRDO (Director/ Secretary TDF Board) will sign the letter of agreement with
successful project applicants and sanction of 15% of fund to participants through ECS
and rest amount will be released on achieving milestone through periodical reviews.
13.4DRDO (Director/ Secretary TDF Board) will notify the successful applicants
regarding the “Monitoring & Mentoring” mechanism as decided by the Empowered
Committee which will be implemented by AN AGENCY.
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
14. Monitoring of Programme
Process Description
14.1 Upon signing of the agreement between DRDO and successful Project applicants,
AN AGENCY will initiate the process of periodic review and mentoring of supported
projects as per the milestones and deliverables outlined in the agreement.
14.2 AN AGENCY will initiate the process of milestone based periodic review and
mentoring of supported projects by appointing a Project Monitoring cum Mentoring
Group (PMG) - team of technical and financial experts who will provide a written
Review report along with documents.
14.3 The role of the Project Monitoring cum Mentoring Group (PMG) members would
act as facilitators / mentors, who would support the project team for the successful
completion of the project. They would also recommend if subsequent installments
are to be released / delayed / withheld.
14.4
The review/monitoring process is explained below:
14.4.1 PMG will review the progress of projects, and provide requisite mentoring
support for the project, as per the Terms–of–Reference (ToRs) agreed with
DRDO. The appointment of a PMG will usually be for the duration of the project,
till its completion/closure. The number of visits to be undertaken and reports to
be submitted by them during this period will be specified in the agreement
between AN AGENCY and PMG/TPA. The fees payable by AN AGENCY to
PMG may be fixed on per-visit, periodic or consolidated basis for the entire term
of the project, as mutually agreed by AN AGENCY.
14.4.2 PMG in consultation with Technical Committee, will review progress of projects
as per their planned milestones and deliverables, and will provide
suggestions/advice to Project Applicant/Partners for successful completion of the
project in a timely manner. As decided internally, a nodal contact point within AN
AGENCY will be assigned for all routine matters.
14.4.3 After each on–site review meeting with Project Applicant/Partners, PMG will send
a Review Report of the review meeting, along with documents (if any), to AN
AGENCY/DRDO (Technical Committee).
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
14.5 Periodic monitoring/review of the projects will be done by the Technical
Committee.
15 Release of Funds : 1st Installment & Subsequent Installments
15.1 Funding Mechanism
TDF requires various a flexible funding approach for applicants to encourage and apply.
Two funding options are therefore proposed to implement the scheme:
Funding Option- I
•
Upon signing the Legal Agreement with DRDO, the successful applicant will be
issued a Grant letter and will be entitled to receive 15% of the total grant amount
approved. The disbursement of this grant will in the form of upfront payment to
support the applicants to initiate development of the technology.
•
The remainder of the grant amount will be paid in a maximum of three(03)
installments in the form of reimbursement upon successfully achieving the
“Milestones” as agreed between the applicant and DRDO.
Funding Option-II
•
Upon signing the Legal Agreement with DRDO, the successful applicant will be
issued a grant letter and will be entitled to receive 15% of the total grant amount
approved. The disbursement of this grant will in the form of upfront payment to
support the applicants initiate development of the technology.
A staggered approach towards project funding in this technology development
project will be provided in the form of advance funding available for the
remainder of 85% of the sanctioned amount. Subject to a maximum of three(03)
“Milestones” of the project, applicants can seek an advance upon producing a
Bank Guarantee of the same amount as collateral.
15.2 The release of initial and subsequent installment as reimbursement of Project
expenditure incurred under the TDF Scheme, for the on-going supported projects will be
based on the PMG Review Reports and completion of milestones and deliverables as
outlined in the Agreement.
•
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
15.3 In some cases milestone-based advance may be given to Companies and
R&D/Academic institutions. However, Companies and ‘Other than Govt-owned’
R&D/Academic institutions shall be given advance only against bank guarantee of
equal outstanding amount. Government-owned academic/R&D institutions need not
submit any bank guarantee for seeking advance.
15.4 The release of subsequent installments or otherwise, for the on-going supported
projects will be based on the Milestone based Review Reports on completion of the
agreed Milestones/ deliverables as outlined in the project proposal and as agreed in
the Legal Contract.
15.5 For release of subsequent installments, Project Applicant/Partners shall be
required to submit the following documents:
Detailed Project Update Report
Utilization Certificate & Statement of Expenses (UC & SE)
Certificate from Chartered Accountant
Based on the review reports/meetings and documents submitted by
Project Applicant/Partners, AN AGENCY will recommend for disbursal of
subsequent funding installment to the project applicants.
15.6 Periodic monitoring/review of the projects will be done by the DRDO - Technical
Committee.
14.6.7 Fund installment would, subsequently, be released as per the approved
milestones and on the basis of progress review report by Technical Committee.
•
•
•
•
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
16. Project Closure &Post Completion Monitoring
Project Completion /
Closure
Successful Completion
Premature Closure
Project becomes unviable time/cost overruns
DRDO decide to
close the project
Grant
Grant
Grant
Grant
Write-off
Write-off
Voluntary withdrawal
by Project
Applicant/Partner(s)
Write-off
** For “Write Off” of the Grant, a request in form of undertaken has to come from the
Authorized Personnel ( backed by the Board Resolution) of the company on the Letter
head describing the valid reason of failure
Process Description
16.1 Project Completion Report (PCR) by Project Applicant/Partners
16.1.1 The project will be considered completed based on the Milestone based reviews
and Project Mentoring and Fund Disbursal Plan (PMFD) between DRDO and the project
partners.
16.1.2 Upon completion of the project, Project Applicant/Partners would be required to
submit a Project Completion Report (PCR) to DRDO within 45 days from the date of
completion of the project. The PCR shall be a factual and objective report of how the
project was conceived, prepared, and implemented in line with the project milestones. It
would particularly highlight the following:
•
•
Deliverables achieved as per milestones
Project progress update based on the project review/mentoring visits
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
•
•
•
•
•
•
Technological breakthroughs (if any) and market intelligence in the project
area
Problems experienced and whether there were foreseen/unforeseen risks
involved
Key achievements, expected impact and sustainability of benefits
Cumulative expenditure for the project period
Reasons for excess/shortfall (if any) in the expenditure/ deliverables of the
project
Follow–up actions required and proposed improvements (if any)
17. Project Completion / Closure
Based on the Project Monitoring cum Mentoring reports by PMG and PCR by Project
Applicant/Partners, DRDO will do the following:
17.1 For projects which will have all the milestones satisfactorily completed, by the
project applicant/partners, AN AGENCY– based on final PMG report submission,
will assist in preparing Evaluation Report on Technical Completion of project to
submit the same to DRDO.
17.2 In case of variation in pre–defined milestones or early/delayed completion of a
project, AN AGENCY will discuss the same with Nodal Officers of DRDO at the
quarterly Technical Committee Review Meetings. Based on the discussions, AN
AGENCY may advise PMG to undertake on–site review of the project and submit
recommendations regarding the completion status of the project in due course of
time. AN AGENCY will accordingly develop a Report on Technical Closure of
project for AN AGENCY to submit to Technical Committee.
17.3 Upon satisfactory completion of the project, DRDO would issue a “No Dues
Certificate” (NDC) to Project Applicant/Partner. However, if the project is
unsuccessful and is prematurely closed (on account of technical failure or diversion
of funds), Technical Committee will review the status and make suitable
recommendation to Empowered Committee for Write–off / One–Time–Settlement
(OTS – partial or full) as appropriate, based on PMG recommendations. ** for
“Write Off” of the Grant, a request in form of undertaking has to come from the
Authorized Personnel (backed by the Board Resolution) of the company on the
Letter head describing the valid reason of failure.
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
18. Accounting/Reporting Process for Grants Provided to Satisfactorily
(Successfully) Completed Projects:
The Project Applicant/Partners would be required to provide Annual Post
Implementation Review (APIR) Report to DRDO through AN AGENCY for the
subsequent two years, following the completion of the project. This review would allow
AN AGENCY’s project team to analyze the level of success of the project in order to
highlight the best practices and key learning/lessons for future projects.
19. Other Project Closure Options for Defunct/Defaulted Projects
19.1
Settlement of Dues
19.1.1 Since funding for R&D projects has inherent risks, DRDO would try to on
minimize the loss if any by paying 15% seed fund and rest release of funds on
reimbursement basis against actuals on achieving agreed milestones. In this
process, DRDO would endeavor to minimize the chances of direct litigation.
19.1.2 Un-Recoverable Balance Dues may be settled through Write-Offs (follow the
Write Off clause in the previous section) or One-Time Settlements (OTS). AN
AGENCY will assist in preparing write-off report/one time settlement/ sale of
asset etc. DRDO will take the final decision on exercising the option.
20. Premature Closure of Project
20.1 Project Monitoring & Mentoring Committee may recommend for premature closure
of the project anytime during the project implementation phase, in case of any default
(technical/financial/legal) or deviations from the project objectives.
20.2
Premature-closure may also be recommended in case of non–compliance with
the terms & conditions of the sanction and after internal due diligence would put
this recommendation to Technical Committee and then subsequently to the
Empowered Committee to make the final decision
20.3 In general, a project may be prematurely closed on account of any of the following
reasons:
•
DRDOdecides to close the project, based on Project Mentoring Group (PMG)
recommendation and reports
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
•
•
•
•
•
•
•
Project becomes unviable - time and/or cost overruns in the projects.
Forceful closure of the project by legal/statutory bodies, government
agencies, ministries, security agencies etc.
Project Applicant /Partners wanting to exit from the project on account of
non–willingness, inability to complete the project, etc.
Voluntary withdrawal by Project Applicant/Partner(s)
Diversion of funds
Violations in approved terms
Violation of end use of fund norm
20.4 DRDO will immediately stop providing financial support to Project Applicant/
Partners, upon declaration of premature- closure.
20.5 Any decision for premature closure of a project would have to be consented by
Technical Committee, DRDO.
21. Recovery of Grant Amount for Prematurely Closed Projects:
In case Grant is given to the industry (Project applicant) and project is pre-maturely
closed due to willful default, then, the grant may be recovered as per the direction of
DRDO.
22. One Time Settlement (OTS) for Grant
22.1 If a project is unsuccessful, requiring pre-mature closure, and the amount is
non-recoverable, however, Project Applicant/Partners are willing to settle the dues
as per mutually agreed terms between AN AGENCY and Project Applicant/Partners.
AN AGENCY will prepare a proposal (in consultation with the Project Monitoring
Cum Mentoring Group) and recommend a One Time Settlement (OTS)to
Empowered Committee through Technical Committee for final decision.
20.2DRDO will issue a Project Closure Letter cum No Dues Certificate (NDC) after
clearance of all applicable dues or Write-Off/OTS, as the case may be. Letter will be
issued within 90 days from the date of receipt of final installment or Write-Off/OTS
approval.
22.2 The project will be declared closed after settlement of entire outstanding amount
and UC/SE received from the Project Applicant/Partners. Based on these, a “NDC
will be issued to Project Applicants/Partners. The closure reports of individual
projects would be maintained by AN AGENCY.
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
22.3 End Use of Funds: It is expected from Project Applicant/Partners that the
funding support provided by DRDO to them would be utilised for the specific project
as proposed in the application form and sanctioned by DRDO. In case of misuse or
mis–utilization of funds, in contravention of the terms and conditions of the
sanction, Project Applicant/Partners would be liable to refund the amount to DRDO
within 90 days (from the date of issuance of the notice).
23. Database
AN AGENCY will prepare a comprehensive list of projects supported under the TDF
scheme, besides the Knowledge Grid Report which it will provide before initiation of
each RFP cycle and make it available to DRDO for its use. This list will entail the
learning’s from all funded projects. Every applicant will have to submit the following
report depending on the outcomes:
23.1 Project Success Report (PSR)
In case of successful projects, Project Applicant/Partners would be requested to submit
Project Success Story (PSR) at the time of payment of the full and final installment. This
report will be reviewed by AN AGENCY, with the help of respective PMG, for the
purpose of disseminating information on such success stories for wider impact and
greater reach among potential applicants. The information will be disseminated by AN
AGENCY through its publications, websites and other means targeting the user Service,
industry and DRDO, etc., taking into account the confidentiality aspects.
23.2 Project Failure Report (PFR)
If project fails at any stage, the Project Applicant/Partners would be requested to submit
Project Failure Report (PFR) at the time of settlement of outstanding dues. This report
will be reviewed by AN AGENCY with the help of respective PMG, for the purpose of
compiling case studies and lessons learned. Key learning’s from such case studies may
be disseminated through publications, websites and other means, taking into account
the confidentiality aspects.
24. Asset Management
24.1 Following the review and assessment by or on behalf of DRDO, if the activities
funded by this Agreement are foreclosed or not carried forward, the Grant support
disbursed by DRDO shall become immediately repayable and the Project Applicant/
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
Partner or Indian Consortium, as the case may be, shall pay to DRDO the amount of
grant already disbursed, together with the interest per annum, compounded monthly, till
the date of repayment and other charges within a period of two months, from the
communication of such decision, failing which DRDO may take such action in
consultation and approval of Technical Committee for the recovery of the amount
including sale of assets/technical know-how/patents or other rights so acquired by
the Project Applicant/ Partner or Indian Consortium, as the case may be.
24.2 The proceeds of such sale would be adjusted against the balance outstanding, if
any and shall be used for repayment of the grant support and other amounts due to
DRDO, from the Project Applicant/ Partner as the case may be.
25. IPR Management
All Foreground information and Foreground Intellectual Property Rights, generated
during the Project, shall be owned, either by DRDO or jointly by DRDO and company/
institution. Background information and Background Intellectual Property Rights,
created by company/ institution and DRDO prior to the Contract, shall rest with the
owing party. However, DRDO shall be deemed to have all rights including a
nonexclusive, irrevocable, royalty-free, perpetual and all paid-up license for commercial
development, series production, product maintenance, continuing engineering support,
product improvement, either by itself or by its licensees in India or abroad, any and all
Background information and Background intellectual Property Rights, as well as
Foreground Information and Foreground Intellectual Property Rights of Company/
Institution, whether or not legally protected, for the purpose of government applications.
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SOP for Implementation of Technology Development Fund (TDF) Scheme - MoD
PROGRAMME MANAGEMENT APPROACH - TDF
Download the Guideline and Application Form and understand the applicability
of this scheme in Defence Technology Development, considering the area of
focus under the scheme.
Identification of suitable technology (AN AGENCY may facilitate) & internal
vetting of the same.
Submission of the completed application to AN AGENCY with appropriate set
of Technical/Financial/IP documentations and testimonials through ONLINE
web-process before the RFP closing cycle.
Intimation to applicants after initial screening for completeness of the
applications.
Evaluation of the applications by a Panel of Experts(PoE) appointed by AN
AGENCY (in consultation with DRDO) on the Technical/Financial/IP aspects to
assess the value proposition and reporting of the findings. The applicants will
be called for multiple rounds of presentations (as appropriate) at their
expenses.
Evaluation of the PoE recommended projects by a Technical Committee.
The outcome of the above meetings will be presented to Empowered
Committee for facilitating the selection of the project proposals and
granting its approval. Results will be communicated to all applicants via
email.
Issuance of the Grant Letter by DRDO to the successful applicants and
Signing of Agreement.
Release of the initial grant amount to the applicants by DRDO.
Appointment of Project Monitoring and Mentoring Committee and Milestone
based review and reporting to DRDO.
Follow the similar mechanism in the next subsequent cycle.
27