1. Commercialization of Innovations
FINANCIAL ASSISTANCE
for
Commercialization of Innovations BY
NIRAJ KELA
DIRECTOR
TECHNOLOGY DEVELOPMENT BOARD
DEPARTMENT OF SCIENCE & TECHNOLOGY
TECHNOLOGY BHAVAN, NEW MEHRAULI ROAD
NEW DELHI –

2. MINISTRY OF SCIENCE AND TECHNOLOGY
Department of Science
& Technology
Department of Scientific & Industrial Research
Department of Biotechnology
R&D Labs
TDB
TIFAC
R&D Labs
CSIR
CEL
NRDC
Website:
DST:
DSIR:
DBT:
SOME SUCCESS STORIES
- Hepatitis Vaccines
Energy from Municipal
Solid Waste
- Battery Operated Car, Indigenous Sedan / Station Wages Car
- Epidermal Growth Factor
- Passenger Air Craft, e-Governance
For
COMMERCIALIZATION
OF TECHNOLOGY

3. TECHNOLOGY DEVELOPMENT BOARD
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.
financial assistance in the form of Soft Loan, Equity or Grant-in-aid.

4. Pro-Active roles
The Board takes a pro-active role to enhance exports and to produce competitive consumer products;
It encourages industries and R&D institutions for product innovation or improvisation of socially relevant and profitable technologies that suit the Indian market; technology to be goal-oriented, socially relevant and profitable.
It identifies the areas that requires strategic interventions.
The Board encourages new ideas from small
enterprises even at the risk of failures.

5. TDB functions as defined in the Act:-
Technology Development Board, would-
Provide equity capital, subject to such conditions as may be determined by regulations, or any other financial assistance to industrial concerns and other agencies attempting commercial application of indigenous technology or adapting imported technology for wider domestic applications;
2. Provide financial assistance to such research and development institutions engaged in developing indigenous technology or adaptation of imported technology for commercial application, as may be recognized by the Central Government;
3. Perform such other functions as may be entrusted to it by the Central Government

6. Technology Development Stages & TDB
Idea Generation
TDB
Non TDB
Theoretical Modeling
Product or service
TDB operates in the niche segment of technology innovations / development & commercialization and not technology application
Concept Development and Prototyping
Business Analysis
Beta Testing and Market Testing
Technical Implementation
Commercialization

7. Seven Steps to (near) Perfection

8. Support to Venture Capital Funds Technologies of National Importance
TDB Funding Channels
Soft Finance
Seed Capital Support
Support to Venture Capital Funds
Technologies of National Importance
To industrial
concerns
Technology
Start up
Companies
Consortiums
And like.
Through
Business
Incubators
at Centre of
Technology /
Academic
Excellence
For financing
start ups.
To consortium
of Industry, Labs
and Contract
Research
organization
Integrated programmes for development and commercialization of technologies
Soon: US Aid Corpus of Rs 200 crores for social innovations

9. TDB FUNDING CRITERIA Prototype Development should be completed
Soft Finance to Innovating Companies
TDB FUNDING CRITERIA
Prototype
Development should
be completed
Who can be funded ?
Commercial enterprises, startup companies (excluding sole entrepreneur/ proprietorship concern)
Source of Technology
National Laboratories
In-house R&D unit of a company
recognized by DSIR
Individuals holding IPRs
Adaptation of imported technology to wider domestic applications
TDB is not Software Development Board neither it is Technology Application Board.
Substantial nature of Technology
Development is the mandate.

10. Terms & Conditions of TDB Funding
Soft Finance to Innovating Companies
Terms & Conditions of TDB Funding
Term/ project Loan to commercial entities
upto 50% of project cost to be incurred at the date of application
@ 5% simple interest
Total project debt to equity of promoters/ partners ratio: 1.5 : 1.
Disbursement in installments
Moratorium of 1 year between disbursement and repayment
Working capital not included.
R & D / marginal Design development / software development charges not included :
Technology should be ready for commercialization / proven at pilot plant level / beta level.

11. Terms & Conditions of TDB Funding
Soft Finance to Innovating Companies
Terms & Conditions of TDB Funding
Term/ project Loan to commercial entities
0.5 % for the duration of re-payment.
Implementation within 3 years
Customs duty exemption on import of R&D equipments
Soft Collaterals
Repayment in six monthly nine installments
No prepayment / commitment / processing charges.
Equity in public entities upto 25% of project cost
Grants-in aid to projects of national interest

12. What can be funded: Development and commercialisation of
Soft Finance to Innovating Companies
What can be funded: Development and commercialisation of
New product/process/applicati on through indigenous technology.
Significant improvements in the existing product/ process/ application.
Development and deployment of technology or design to satisfy existing occupational health and/or safety standards, environmental requirements or standards current or anticipated.

13. Partnership with TDB Health & Medical Road Transport Air Transport
Engineering
Chemicals
Energy and Waste Utilization
Information & Communication
Technologies
Agriculture

14. TDB SUPPORT IS NOT AVAILABLE
Soft Finance to Innovating Companies
TDB SUPPORT IS NOT AVAILABLE
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

15. TDB PROJECT APPRAISAL & FUNDING MODEL
Soft Finance to Innovating Companies
TDB PROJECT APPRAISAL & FUNDING MODEL
Delegation Stage 1
Loan application
Upto Rs. 2.5 crores ( 10 copies)
2 months
ISC
Personal hearing
to the applicant NO
YES
Chairperson
YES
Letter of Intent

16. TDB PROJECT APPRAISAL & FUNDING MODEL
Soft Finance to Innovating Companies
TDB PROJECT APPRAISAL & FUNDING MODEL
Delegation Stage 2
Loan application
Upto Rs. 10 crores ( 10 copies)
ISC
Personal hearing
to the applicant NO
YES
3 -4 months
PEC NO
YES
Sub –Committee of
the TDB Board
YES
Letter of Intent

17. TDB PROJECT APPRAISAL & FUNDING MODEL
Soft Finance to Innovating Companies
TDB PROJECT APPRAISAL & FUNDING MODEL
Delegation Stage 3
Loan application
above Rs. 10 crores ( 10 copies)
ISC
Personal hearing
to the applicant NO
YES
PEC
> 4 months NO
Financial
Due Diligence
YES NO
TDB Board
YES
Letter of Intent

18. Soft Finance to Innovating Companies
Cost of the Project
Heads of expenditure
Total
Land
Site Development
Building/Civil works
a. Factory
b. Administrative
c. Others
Plant & Machinery
a. Imported
b. Indigenous
Miscellaneous Fixed
assets
Technical know-how &
Engg. Consultancy fee
Cost of filing patents
Contingency
Margin money for WC
Expenditure Incurred till the date of application
Expenditure to be incurred
Land
Site Development
Building / Civil Works
(i)Factory
(ii)Administration
(iii)Others
Plant & Machinery
(i)Imported
(ii)Indigenous
Miscellaneous Fixed Assets
Electricals
Technical Know-how Fees
Cost of filling patent(s)
Preliminary &Pre-operative Expenses
Marketing & Travel Expenses
TDB support is limited to 50% of the project cost to be incurred on the date of the application
Debt: equity ratio of 1.5:1
Others (specify)
Interest during Construction
Contingency
Margin Money for working capital
Total

19. Means of Finance Soft Finance to Innovating Companies Status on date
Additional
Amount
Proposed
Total
Equity
Promoters
Others (specify)
Loan
Financial Institution
Bank
Others (specify)
Assistance from
TDB Loan or Equity (specify)
Total

20. Project completion & Repayment
Soft Finance to Innovating Companies
Submission of application
Proposals are screened by Internal Screening Committee on the following aspects
Point of view of Completeness of the Application
Objective of the Project
Status of the Technology
Track Record of the Applicant
Project Cost
Internal Screening
Project Evaluation
Signing Loan Agreement
Project Monitoring
Project completion & Repayment

21. Project completion & Repayment
Soft Finance to Innovating Companies
Proposals are Evaluated by Project Evaluation Committee on the following criteria
Soundness, Scientific Quality and Technical Merit
Potential for Wide Application and the benefits expected to accrue from Commercialisation
Adequacy of the Proposed Effort
Capability of the R&D Institution in the proposed Action Network
Organisational and Commercial Capability of the Enterprise including its Resources
Reasonableness of the Proposed Cost and Financing Pattern
Measurable Objectives, Targets and Mile-stones
Track Record of the Entrepreneur
Submission of application
Internal Screening
Project Evaluation
Signing Loan Agreement
Project Monitoring
Project completion & Repayment

22. Signing of Loan Agreement
Soft Finance to Innovating Companies
Signing of Loan Agreement
Based on the recommendations of PEC, the Board may approve the project
For bigger projects, due-diligence exercise may be conducted
The terms of loan assistance may differ based on the type of project
Loan agreements are signed at New Delhi
An Agreement is signed in duplicate
Submission of application
Internal Screening
Project Evaluation
Signing Loan Agreement
Project Monitoring
Project completion & Repayment

23. Project completion & Repayment
Soft Finance to Innovating Companies
Submission of application
Project Monitoring
Project is monitored by PMC consisting of technical & financial experts
Before each monitoring, the enterprise is required to submit the prescribed returns
Monitoring of the project is done before release of subsequent instalment except the first.
Monitoring is done to review the physical, technical and financial progress of project
Based on the recommendations of PMC, next instalment of assistance may be released, or appropriate decision taken by the Board
Internal Screening
Project Evaluation
Signing Loan Agreement
Project Monitoring
Project completion & Repayment

24. Project Completion & Repayment
Soft Finance to Innovating Companies
Project Completion & Repayment
On completion of the project, completion report is required to be submitted.
Repayment is spread over a period of 5 years
Repayment commences after one year of completion of the project
Payment of accumulated interest is spread over 3 years commencing after one year from the start of the repayment
All the payments/ repayments are payable at Delhi
Submission of application
Internal Screening
Project Evaluation
Signing Loan Agreement
Project Monitoring
Project Completion &
Repayment

25. Seed Capital Scheme
TDB provides grants of Rs 1 crore to TBI / STEP managers.
Grant to be used as Seed Capital (Loan and / or Equity)
Beneficiaries: in house Tech start up companies.
Transparent Framework
Flexibilities of Terms

26. Policy Seed Capital Scheme
Maximum grant by TDB : Rs one crore to the Corpus.
TBIs/ STEPs must have
for in-house tech start ups,
physical infra and common facilities for them,
Access to knowledge, mentoring,
Access to Tech services,
Manpower / expertise to manage,

27. Policy Seed Capital Scheme Minimum: Rs 1 lakh, Maximum Rs 25 lakhs,
Assistance as seed capital and not as Term / WC financing.
Project Management Committee as the top Policy and approval body,
No Lien Project Bank Account.
Proper legal structure.

28. Committee of Independent Experts
Procedures
Proposals
2 months
Committee of Independent Experts
Personal hearing
to the applicant
TDB Chairperson
YES
Letter of Intent

29. Before applying……………. Advisable to
Check eligibility and fitment into policies.
Clear understanding of requirements.
Top management commitments.
Availability of physical , knowledge and manpower resources.
Proper systems and processes.
Adequate number of incubatees
Quality of their projects.
Pre-consultations with TDB , Peers.

30. Support for start-ups in incubators
So far, TDB has provided financial assistance of Rs. 1 crore each to the
following 36 STEPs / TBIs:-
JSSATE – STEP, Noida
VIT Vellore
CIIE – IIM, Ahmedabad
TREC-STEP, Tiruchirappalli
SINE – IIT, Bombay
PSG- STEP, Coimbatore
SJCE- STEP, Mysore
TBI- KEC, Perundurai, Erode
SIDBI Innovation and Incubation Centre, IIT Kanpur
ICRISAT, Pantancheru, Hyderabad
NIT, Karnataka
IIT, Madras, Chennai
NCL, Pune
Amity University Incubator, Noida
Amrita TBI, Kerala
SIDBI, IIT Kanpur
Contd………..

31. Support for start-ups in incubators
TREC-STEP, Tiruchirapally
JSSATE-STEP, Noida
Manipal University, TBI, Manipal.
NDBI, NID, Ahmedabad
NIT, Calicut
Technopark-TBI, Kerala
IKP Knowledge Park, Secunderabad
BITS, Pilani, Rajsthan
FITT, IIT Delhi
Villgro Innovation Foundation, Chennai
Ekta Incubation Centre, Kolkata
eHealth TBI, Bangalore
IAN Incubator, New Delhi
IIIT, Hyderabad
S&T Park, Pune
STEP, IIT Kharagpur
IIT, Guwahati
KIIT-TBI, Bhuwaneshwar
CIIE-IIM, Ahmedabad
MITCON-TBI, Pune

32. Support for start-ups in incubators (5th round)
TDB has provided financial assistance of Rs. 5 crores to the
following 10 STEPs / TBIs in fifth round during :-
Ekta Incubation Centre, Kolkata
eHealth TBI, Bangalore
IAN Incubator, New Delhi
IIIT, Hyderabad
S&T Park, Pune
STEP, IIT Kharagpur
IIT, Guwahati
KIIT-TBI, Bhuwaneshwar
CIIE-IIM, Ahmedabad
MITCON-TBI, Pune

33. Joint Financing
TDB has participated in venture capital investments with:
APIDC (APIDC-TDB Biotech Fund): Fund has been established to promote development and commercialization of indigenous technology in the field of biotechnology and related sectors. (Rs. 30 crores)
UTI-Ascent India Fund: Aims to take advantage of the favorable market conditions in India and also the upbeat domestic and international growth prospects of key Indian industries for making private investments. (Rs. 75 crores)
UTI –ITVUS Fund (Rs. 25 crores)
Ventureast TeNet Fund II (Rs. 15 crores)
GVFL Venture Capital (Rs. 15 crores)
6. RVCF Venture Capital (Rs. 15 crores)
TOTAL:- Rs.175 crores

34. Sanctioned by the Board
Sector-wise coverage ( )
(Rs. in Crore)
S.No.
Sector
Number of Agreements
Total cost
Sanctioned by the Board 1
Health & Medical 63
885.08
277.03 2
Engineering 50
466.56
161.4 3
Electronics
35.51
9.75 4
Chemical 19
154.44
50.98 5
Agriculture
125.18
40.52 6
Energy & Waste utilization 8
132.36
55.98 7
Tele- communication 11
90.04
33.85
Defence and Civil Aviation
2.20 9
Road Transport 10
527.04
81.20
Air Transport
142.1
67.80
Information Technology 32
274.98
112.01 12
Others 31
682.83
199.50
Total
248
*As on 31st March 2011

35. Total Investment is Rs 954.64 crores as on March, 2011
Break-up of TDB Investments
Venture Funds, 14.92%
Grant, %
Loan, %
Equity, 2.55%
Total Investment is Rs crores as on March, 2011

36. ACHIEVEMENTS OF TDB
15 years of rich experience in funding commercialization of new technologies and handholding with enterprises
So far, TDB has signed 248 agreements with over Rs crore
Leveraged more than Rs crore of external funding from FIs
Projects are spread over 17 states / Union Territories and almost in all the industry segments
TDB has emerged as a major promoter of first generation technopreneurs
First Generation Technopreneurs need more managerial support and handholding

37. National Award for successful technology
Technology Development Board has instituted a 'National Award for successful commercialization of indigenous technology' by an industrial concern. The National Award of Rs. 10 Lakhs each is given to the industrial concern that has successfully commercialized the indigenous technology and the developer/ provider of such technology.

38. National Award to a SSI unit for successful technology
The Technology Development Board also provides a cash award of Rs. 2 lakhs to be given to a Small Scale Industry (SSI) that has successfully commercialized a product based on indigenous technology.

39. Commercialize Innovations
INVITATION …..
TDB look forward for
Partnership/Networking
Opportunities to
Commercialize Innovations
For further information, please contact :
Secretary
Technology Development Board
Department of Science & Technology
Wing-A, Ground Floor, Vishwakarma Bhawan
Shaheed Jeet Singh Marg
New Delhi –
E: mail :
Website: