Technology Development Board to launch Rs 1000-crore start-up fund

Subject : Science and Technology

Section:

The Technology Development Board (TDB), a statutory body under the Department of Science and Technology is set to launch a ₹1,000-crore start-up fund under a public private partnership (PPP) model.
The fund will be launched in two phases:
- In the first phase, a corpus of ₹400 crore will be set up, of which ₹200 crore will be contributed by a private company.
- In the later phase, TDB will partner with more companies to raise and invest money.
The fund is sector agnostic and is looking to invest in start-ups that aim to solve a problem with strong technical solutions and has a wider use case.

Technology Development Board

It is formed by an act of the Indian Parliament, namely, the Technology Development Board Act, 1995 under the Ministry of Science and Technology.
TDB is the chief body in India to promote the development and commercialization of indigenous technology and adaptation of imported technology for wider application.
Its primary objective is to commercialize the fruits of indigenous research.
It proactively encourages companies to take up technology-oriented products.

Technology Development Board Objectives

To stimulate new ideas from small firms even at the risk of failures;
To advance the production of competitive consumer products;
To propel industries and R&D institutions for product innovation;
To develop socially relevant and profitable technologies;
To recognise and act in domains needing strategic interventions;
To invest in core technological strengths to enable the Indian industry to stand up to the competitive pressure and become a global player.

Technology Development Board Functions

The major function of the TDB is the provision of equity capital or loans to industrial concerns and also offers financial assistance to R&D institutions.
Its loans carry only a small simple interest rate of 5% PA.
The other functions are as follows:
- Facilitating interaction between the industry, technocrats, scientists and specialists.
- Fostering an innovation culture by enabling cooperative research between the industry and institutions.
- Providing the enterprises with an interface with banks and financial institutions for funds.
- Creating a new breed of new generation entrepreneurs.
- Assisting partnerships with other similar technology financing institutions.
- Providing vistas for venturing into hi-tech domains.
- Generating job opportunities.

Technology Development Board Members

TDB is chaired by the Secretary of the Department of Science and Technology (ex-officio member). Other than the Chairperson, there are six ex-officio members and four nominated members.
The ex-officio members are the secretaries of the departments of Scientific & Industrial Research, Defence Research & Development, Expenditure, Promotion of Industry and Internal Trade, and Rural Development.