FINANCAIL ASSISTANCE from TDB: A UNIQUE SCHEME FOR ENTREPRENEURS

BY

TECHNOLOGY DEVELOPMENT BOARD

DEPARTMENT OF SCIENCE & TECHNOLOGY TECHNOLOGY BHAVAN, NEW MEHRAULI ROAD NEW DELHI 110016 www.tdbindia.org

CHENNAI, 26th September 2006

WHAT IS TECHNOLOGY DEVELOPMENT BOARD

TDB

GOI constituted TDB in Sept 1996 under the provisions of the TDB Act 1995. TDB provides financial assistance to the industrial concerns and other agencies for development and commercialization of innovative technologies. TDB provides financial assistance in the form of Soft Loan, Equity or Grant-in-aid.

THE MANDATE
TDB

Accelerating the Development and Commercialization of Indigenous Technology and/or Adapting Imported Technology to wider domestic Application

Provide financial assistance in the form of Soft Loan, Equity or Grant

Develop linkages between R&D institutions and Industry for catalyzing the adaption of innovative technologies

ROLE OF THE BOARD

TDB

Guardian of the FUND

Take decision of Technical & Administrative proposals Review/ Advise/ take decision on new initiatives for furtherance of technology development & commercialization Review the progress of projects funded Advise/ take decision on legal issues Review/ Advice on overall functioning of TDB Any other that may be required for promoting commercialization of innovative technologies

Path of Innovation & Support System Present Scenario

Technology Incubation Centers (ARCI, IITs, IISc.. STEPs, GIAN, IndiaCo.)
Department of Various Ministries, ACADEMIA

TDB

?? .. gap .. ?? SBIR/STRR type of funds

SIDBI, VCF, Bank?, FI ?..

(CSIR Labs,University)

DBT, DST-SERC
Innovation Lab/ industry R&D

TIFAC, NMITLI, DSIR, ICICI

Useable Prototype Pilot production

Technology Development Board

Commercialization & Market Launch

R:1
R&D back up for SME (~technology risk )

D:10

C:100
Funds requirement (~commercial risk )

CHALLENGES IN COMMERCIALIZATION OF EMERGING TECHNOLOGIES

TDB

Long gestation periods Commercialization is relatively costly and

difficult phase
Complex Regulatory procedures Cut-throat competition Development & commercialization needs to be done concurrently Difficult to get finance from FIs/ Banks High Risk Knowledge and R&D Intensive Difficult to appraise the viability

Where from TDB gets its Funds?

TDB

The R&D Cess that is being collected by the Government of India from the import of technologies has been put into a fund called the Fund for Technology Development and Application To administer the Fund, the Government constituted the Technology Development Board in 1996

SALIENT FEATURES OF TDB FUNDING

TDB

Provides loan upto 50% of project cost May invest in equity upto 25% of project cost Grants-in aid to projects of national interest 5% simple interest is chargeable on loan Implementation within 3 years Funds are released in installments Accumulated interest is spread over a period Customs duty exemption on import of R&D equipments No Processing/Administrative Charges Soft Collaterals Moratorium of 1 year

TDB FUNDING CRITERIA

TDB

Who can be funded ?

Commercial enterprises, startup companies (excluding sole entrepreneur/ proprietorship concern)

Source of Technology
National Laboratories Prototype In-house R&D unit of a company Development should be completed recognized by DSIR Individuals holding IPRs Adaptation of imported technology to wider domestic applications For Agriculture & Food Processing, IT and Designing &
developing Special Engineering Machinery (above condition relaxed)

TDB SUPPORT IS NOT AVAILABLE FOR

TDB

Refinancing Basic Research Establishment of new R&D centres Travel, Conferences, Workshops etc unless they form part of project approved by TDB Writing of books, reports unless they are essential component of approved project Mere creation of technical infrastructure More than 2 projects at a time to an industrial concern An industrial concern that is sick

Application/ Proposal
Additional information

530

ISC
YES

NO

3-4 months

Modify

PEC (Domain experts)

< Rs 5 cr.

NO

R E J E C T

TDB
70%

Due diligence > Rs 5 cr TDB Rs 20 cr PC

Signing Loan Agreement (Release of 1st installment) PMC (further release of loan) Project Completion (Success/ Failure :75:25) Repayment of loan Close

Board Approval
Techno-managerial support along with finance

TDB Project Appraisal & Funding Model

Break-up of TDB Funding

TDB

Venture Funds: 19%

Grant: 8.5%

Loan: 69%

Equity: 3.5%

STATUS OF FINANCIAL ASSISTANCE BY TDB

TDB

Instrument

Sanctioned (Rs. In Crore)

Disbursement (Rs. In Crore)

LOAN GRANT
EQUITY OTHERS TOTAL

516.13 24.36
64.40 130.00 734.89

409.50 24.36
56.30 36.25 526.41

SECTOR-WISE FUNDING BY TDB

TDB
Sl. Sector No. of Agree m-ents Total cost Sanctioned by TDB %

(Rs in crores) 1 2 3 Health & Medical Engineering Chemicals

42 35 16

640.81 303.78 112.89

188.04 99.42 36.18

25.6 13.5 5.0

4
5 6 7 8 9 10 Total

Food & Agriculture

Road Transport Air Transport Info/Commu Technology Energy &Waste Utilization Tele-communication Others

15
10 2 17 7 7 9 160

77.98
527.04 142.10 81.25 104.91 55.56 468.83 2515.15

24.52
81.20 67.80 34.27 47.23 20.73 135.50 734.89

3.3
11.1 9.2 4.7 6.4 2.8 18.4 100

NEW INITIATIVES
TDB

Invested in Venture Funds Invested in Incubation centres Strengthening linkages between R&D Labs., academic institutions and Industry Partnerships with foreign institution for joint collaboration on technology transfer

ACHIEVEMENTS OF TDB
TDB

10 years of rich experience in funding commercialization of new technologies and handholding with enterprises So far, TDB Funded more than 125 enterprises with over Rs. 735 crore Leveraged more than Rs. 1800 crore of external funding Projects are spread over 16 states and almost in all the industry segments

EMPHASIS
TDB

Encourage projects by new enterprises and new entrepreneurs Enhance linkages with industry associations and R&D institutions, Incubation centres Evolve a Center for information on innovative technology Partnering for import of technologies of significance not available in the country Explore new projects of social relevance and national interest for funding Enlarge Equity participation and Venture funding

MAJOR BENEFICIARIES OF TDB

TDB Biocon Limited Shantha Biotechnics Bharat Biotech Ranbaxy Limited AV Alloys Limited Picopeta Simputers Ravindranath GE Reva Electric Car Ltd. Radiant Cables Private CSIR

Samtel Colour Limited

Selco International Ltd.

Eicher Motors Limited

Medical (P) Ltd. Legend Tech. Pvt. Ltd.

Limited
Tata Motors Limited

BENEFICIARIES

HEALTH AND MEDICINE TDB

**Biocon India Limited** The company has proposed

the production of Mycophelonate Mofetil through PlaFractor, technology. Mycophelonate Mofetil is an immunosuppressant.
(In Rs. Lakhs)

Total cost of Project 2560 TDB Loan Assistance 970

BENEFICIARIES

HEALTH AND MEDICINE

TDB

**Shantha Biotechnics Limited**

This is the first commercial enterprise with which the Board signed an agreement Commercialize a product Hepatitis-B vaccine -on 9th April 1997 & Shanvac-B in August 1997

(In Rs. Lakhs)

Total cost of Project -2526 TDB Loan Assistance 850

BENEFICIARIES

HEALTH AND MEDICINE TDB

**Bharat Biotech International Limited**

The company launched its maiden product Revac-B in October 1998 The vaccine is manufactured using Saccharomyces (yeast) with a plant capacity of 100 million doses per annum

(In Rs. Lakhs)

Total cost of Project 1221 TDB Loan Assistance 325

BENEFICIARIES

HEALTH AND MEDICINE TDB

**Ranbaxy Laboratories Limited** Signed a loan agreement

with the Board in February 1998.

Develops anti- bacterial including Cefuroxime

Axetil, widely used for the treatment of bone.

(In Rs. Lakhs) Total cost of Project 310 TDB Loan Assistance 115

BENEFICIARIES

HEALTH AND MEDICINE TDB

**Ravindranath GE Medical Associates Private Limited **

The company has set up a 150 bed facility named Global Hospital. It Specializes in organ transplants including liver, kidney, pancreas, small intestine and bonemarrow.

(In Rs. Lakhs)

Total cost of Project 2526 TDB Loan Assistance 1510

BENEFICIARIES

ENGINEERING TDB

**Samtel Color Limited**

Develops indigenously 15" color display tubes (CDT) for computer monitor application in its works in Ghaziabad (U.P.).
In November 2000, the prototype development work for 15 CDT was completed thereby (In Rs. Lakhs) meeting the basic specifications laid out at the beginning Total cost of Project- 698
TDB Loan Assistance- 300

BENEFICIARIES

ENGINEERING TDB

**AV Alloys Limited **

The company has commenced commercial production of ESR processed special alloy steel rounds and bars. The product was launched on the Technology Day, 11th May 2000

(In Rs. Lakhs)

Total cost of Project 2041 TDB Loan Assistance 960

BENEFICIARIES

ENGINEERING
TDB

**Legend Technologies (India) Pvt. Ltd.**

Manufacture of slip rings based on the technology developed by Vikram Sarabhai Space Centre, Thiruvananthapuram.
Commercial production of slip

rings commenced during 2002-2003.

(In Rs. Lakhs)

Total cost of Project 200 TDB Loan Assistance 80

BENEFICIARIES

ENGINEERING TDB

**Radiant Cables Private Limited**

Developed an unique blend of electrical and mechanical characteristics in wires and cables.

Capable of excellent and consistent performance and long life.

(In Rs. Lakhs)

Total cost of Project 1206 TDB Loan Assistance 440

BENEFICIARIES

INFORMATION TECHNOLOGY

**PicoPeta Simputers Private Limited **

TDB

The Simputer, or the simple, inexpensive, multilingual, peoples computer, is an ideal field device for a variety of applications.
The linux based device is slightly larger than a palm but (In Rs. lakhs) has ten times the processing Total cost of Project 200 speed.
TDB Grant 200

BENEFICIARIES
National Aerospace

AIR TRANSPORT
TDB

**Council of Scientific and Industrial Research**

Laboratories has developed the first prototype of the multi-role Light Transport Aircraft (LTA) named as SARAS.
The aircraft made its maiden flight

successfully on 29th May 2004 at (In Rs. Lakhs) HAL, Bangalore Airport. Total cost of Project 131.38
TDB Grant 53.80 TDB Loan Assistance - 11.00

BENEFICIARIES

ROAD TRANSPORT TDB

**Eicher Motors Limited**

The company has been provided financial assistance by the Board for design and development of 12 tonne GVW and above category heavy commercial vehicles.
The company had commenced the engine development in Dec (In Rs. Lakhs) 1997. The company has produced 8 prototypes of the HCVs Total cost of Project 6154
TDB Loan Assistance - 1500

BENEFICIARIES

ROAD TRANSPORT TDB

**Reva Electric Car Co. Ltd**

The battery operated Reva Electric car has been launched by the company in Bangalore & Delhi.
The payload capacity of the car is 250 Kg with curb weight of 700 kg. The car has a driving range of 80 KM per charge and top speed of 65 KM/hour.

(In Rs. Lakhs)

Total cost of Project 1800 TDB Loan Assistance - 465

BENEFICIARIES

ROAD TRANSPORT
TDB

**Tata Motors Limited** The company has developed and manufactured two variants of Indica car Tata Sedan and Tata Estate under Indica Platform. The Indigo Sedan was launched in December 2002 and Indigo (Marina) was launched in August 2004. Tata was given the National award by TDB on the technology day on 11th may 2004

(In Rs. Lakhs)

Total cost of Project 342 TDB Loan Assistance - 30

BENEFICIARIES

ENERGY & WASTE UTILISATION

TDB

**Selco International Limited**

A power plant of 6.6 MW capacity at Mehboob Nagar District(AP) utilizing the processed Municipal Solid waste. It commissioned in November 2003, and the power produced is being exported to AP TRANSCO grid at 33/11 kv substation

(In Rs. Lakhs)

Total cost of Project 1090 TDB Loan Assistance - 455

THE TECHNOLOGY DAY AWARDS

Winner of National Awards
2004 TDB

Indian Oil Corporation Limited, N. Delhi Shantha Biotechnics Ltd., Hyderabad TVS Motor Company Limited, Chennai TTK Healthcare Limited, Chennai TELCO (TATA), Mumbai Shantha Biotechnics Ltd., Hyderabad

2003
2002 2001 2000

1999

TDB

TDB

QUESTIONS PLEASE !