Maarg Manthan · Topic 17.9

Technology Development Board

Science & Technology › Science & Technology Policy and Institutions in India · Topic 17.9

The Technology Development Board, TDB, is a statutory body under the Department of Science and Technology, set up under the Technology Development Board Act, 1995, and functioning from 1996. Its mission is to promote the development and commercialisation of indigenous technology and the adaptation of imported technology to wider domestic use. It gives financial assistance to industrial concerns and other agencies in the form of equity, soft loans and grants for projects based on indigenous or imported technology, where the risk is high. The funds come mainly from a cess on payments for imported technology under the Research and Development Cess Act, 1986, and from government grants. The Secretary of DST chairs the Board. TDB supports start-ups and has funded areas such as healthcare devices, agriculture, clean energy and defence technology.

5 min read · UPSC Prelims · Science & Technology · Science & Technology Policy and Institutions in India

At a Glance

Act Technology Development Board Act, 1995
Parent DST
Aid Equity, soft loans, grants
Money from R&D Cess and grants
Aim Commercialise indigenous technology
Exam link UPSC Prelims, Science & Technology: Science & Technology Policy and Institutions in India

Where Does It Fit?

This topic follows the account of SERB. While SERB funds research, TDB finances the next step of turning research into products, which completes the funding chain within DST. Previous topic: Science and Engineering Research Board (SERB). Next topic: National Accreditation Board for Testing and Calibration Laboratories (NABL).

What Is TDB and How Does It Work?

Aspect	Details
Legal basis	Technology Development Board Act, 1995, with the Board constituted in 1996. A statutory body under DST
Objective	To promote the development and commercialisation of indigenous technology and the adaptation of imported technology for wider use
Fund source	A cess levied on payments for imported technology, called the Research and Development Cess, under the Research and Development Cess Act, 1986, along with budget grants and recoveries
Assistance	Equity participation, soft loans at low interest, grants and venture support
Eligibility	Companies and other bodies developing a new product or process based on indigenous technology with commercial promise
Chair	Secretary of the Department of Science and Technology
Special support	Aid to start-ups and technology-based small firms, often with technical and business mentoring

Where Has TDB Helped?

Medical devices: support to low cost devices and diagnostics, such as cardiac stents and kits
Agriculture: farm machines and bio-products
Clean energy: solar, biofuel and waste to energy technologies
Defence and aerospace: components for defence and space
Information technology: software products and electronics
Vaccines and biotech: funding for vaccine technology and biological products
Start-ups: early-stage technology firms supported
Impact: hundreds of projects supported across states and sectors

What Else Should You Remember?

Cess rate: a levy of 5 percent on payments for imported technology was provided for under the 1986 Act
Technology gap: the gap between lab success and market launch is called the valley of death
Venture capital: private funds that invest in start-ups
Soft loan: a loan with a low rate of interest and flexible terms
Equity: ownership share in a company
Risk sharing: TDB shares risk with entrepreneurs
Commercialisation: the stage of turning technology into a product to sell
Technology readiness level: a scale from 1 to 9 for maturity of technology
National Research Development Corporation: NRDC, set up in 1953, helps in licensing and commercialising technologies from public labs
Startup India: a programme of 2016 for start-up support
Fund of funds: a government scheme to provide capital to venture funds
Incubators: Technology Business Incubators under DST
SIDBI: a development finance bank for small enterprises
Atal Innovation Mission: programme of NITI Aayog to promote innovation
Patents: IPR support is covered in Patents
DST role: see Department of Science and Technology (DST)
SERB role: see Science and Engineering Research Board (SERB)
Projects in numbers: TDB has supported over 300 projects since its start, according to its reports; check the latest figures
Technology Development Fund of DRDO: a separate scheme for defence technology from Indian industry, as in Robotics, AI and Internet of Military Things (IoMT) in Defence
Bridging role: TDB funds the stage after the lab when private banks hesitate
Selection process: a project is checked by experts for technology, market and finance before approval
Recovery: loans are repaid with interest, and TDB may share royalty or profit
Women entrepreneurs: special consideration is given for projects led by women
National Technology Day: celebrated on 11 May, when TDB gives awards for successful commercialisation of indigenous technology
Technology absorption: TDB helps firms absorb imported technology and adapt it to Indian conditions
Small firms: smaller enterprises get easier terms
Interest: loans carry a low rate set below market

Why Does It Matter for the Exam?

Act: 1995
Funding: equity, soft loans, grants
Source: R&D cess
Current affairs link: deep tech start-ups and Research Development and Innovation scheme
Common errors: confusing TDB with NRDC or placing it under CSIR

As an analytical point, early-stage technology firms struggle to get finance because of high risk. TDB’s patient capital helps to bridge the gap between the laboratory and the market, and it works best with a strong pipeline from public research.

Why Is This Topic Important?

Role Commercialisation
Money Cess and grants
Aid Equity, loans

What Came Next?

The next topic covers the National Accreditation Board for Testing and Calibration Laboratories. Next topic: National Accreditation Board for Testing and Calibration Laboratories (NABL).

Key People and Terms

TDB Technology Development Board
R&D Cess Levy on imported technology payments
Soft loan Low interest loan
Equity Ownership stake
NRDC National Research Development Corporation
TRL Technology readiness level

Exam Corner

Points to Remember

TDB Act: 1995; Board started 1996.
R&D Cess Act: 1986.
Parent: DST.
NRDC set up 1953.
Aid: equity, soft loans, grants.

Do Not Confuse With

TDB and NRDC Funds commercialisation versus licenses lab technology
TDB and SERB Product finance versus research grants
Soft loan and equity Debt versus ownership

Memory Hook

Ninety-five Act, cess-fed purse; equity and soft loans take lab tech to market.

Mains Angle

Questions ask for the Act, funding source and form of aid. These points help.

Gap Valley of death
Role TDB
Reform Deep tech

A Question You May Face

An original practice question, not a past paper question.

“How does the Technology Development Board help in commercialising indigenous technology? Suggest ways to strengthen it.”

How to Answer

Problem Valley of death.
TDB Funds.
Impact Examples.
Reform Venture links.

GS Relevance

Prelims: Act, ministry, funding form, source of money. GS Paper 3: science and technology, innovation finance.

Frequently Asked Questions

What is the Technology Development Board?

The Technology Development Board is a statutory body under the Department of Science and Technology, established under the Technology Development Board Act, 1995. It finances the development and commercialisation of indigenous technology through equity, soft loans and grants to companies and start-ups taking up risky technology projects.

How is TDB funded?

TDB gets money from the cess collected on payments for imported technology under the Research and Development Cess Act, 1986, along with government grants and recoveries from earlier loans. This arrangement links the import of foreign technology with the building of domestic technology.

What kind of assistance does TDB give?

TDB gives assistance in the form of equity participation, soft loans at low interest, and grants for projects that apply indigenous technology or adapt imported technology to wider use. It also helps start-ups with mentoring and links to investors.

What is the difference between TDB and NRDC?

The Technology Development Board provides finance to companies to commercialise technology, while the National Research Development Corporation, set up in 1953, helps to license and transfer technologies developed in public laboratories to industry. Both support the movement of technology from the lab to the market.

Who chairs the Technology Development Board?

The Secretary of the Department of Science and Technology chairs the Technology Development Board, which includes representatives of government departments, industry, finance institutions and science bodies. A Secretary of TDB looks after the daily work of the Board.

PYQ Practice — Statement Analysis

1 The Technology Development Board was set up under an Act of 1995.

True

Under DST.

2 TDB is funded mainly by a cess on exports.

False

On payments for imported technology.

3 TDB can give equity and soft loans.