Presentation on theme: "Commercialization of Innovations"— Presentation transcript:
1 Commercialization of Innovations FINANCIAL ASSISTANCEforCommercialization of InnovationsBYNIRAJ KELADIRECTORTECHNOLOGY DEVELOPMENT BOARDDEPARTMENT OF SCIENCE & TECHNOLOGYTECHNOLOGY BHAVAN, NEW MEHRAULI ROADNEW DELHI –
2 MINISTRY OF SCIENCE AND TECHNOLOGY Department of Science& TechnologyDepartment of Scientific & Industrial ResearchDepartment of BiotechnologyR&D LabsTDBTIFACR&D LabsCSIRCELNRDCWebsite:DST:DSIR:DBT:SOME SUCCESS STORIES- Hepatitis VaccinesEnergy from MunicipalSolid Waste- Battery Operated Car, Indigenous Sedan / Station Wages Car- Epidermal Growth Factor- Passenger Air Craft, e-GovernanceForCOMMERCIALIZATIONOF 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 rolesThe 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 smallenterprises 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 GenerationTDBNon TDBTheoretical ModelingProduct or serviceTDB operates in the niche segment of technology innovations / development & commercialization and not technology applicationConcept Development and PrototypingBusiness AnalysisBeta Testing and Market TestingTechnical ImplementationCommercialization
8 Support to Venture Capital Funds Technologies of National Importance TDB Funding ChannelsSoft FinanceSeed Capital SupportSupport to Venture Capital FundsTechnologies of National ImportanceTo industrialconcernsTechnologyStart upCompaniesConsortiumsAnd like.ThroughBusinessIncubatorsat Centre ofTechnology /AcademicExcellenceFor financingstart ups.To consortiumof Industry, Labsand ContractResearchorganizationIntegrated programmes for development and commercialization of technologiesSoon: US Aid Corpus of Rs 200 crores for social innovations
9 TDB FUNDING CRITERIA Prototype Development should be completed Soft Finance to Innovating CompaniesTDB FUNDING CRITERIAPrototypeDevelopment shouldbe completedWho can be funded ?Commercial enterprises, startup companies (excluding sole entrepreneur/ proprietorship concern)Source of TechnologyNational LaboratoriesIn-house R&D unit of a companyrecognized by DSIRIndividuals holding IPRsAdaptation of imported technology to wider domestic applicationsTDB is not Software Development Board neither it is Technology Application Board.Substantial nature of TechnologyDevelopment is the mandate.
10 Terms & Conditions of TDB Funding Soft Finance to Innovating CompaniesTerms & Conditions of TDB FundingTerm/ project Loan to commercial entitiesupto 50% of project cost to be incurred at the date of application@ 5% simple interestTotal project debt to equity of promoters/ partners ratio: 1.5 : 1.Disbursement in installmentsMoratorium of 1 year between disbursement and repaymentWorking 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 CompaniesTerms & Conditions of TDB FundingTerm/ project Loan to commercial entities0.5 % for the duration of re-payment.Implementation within 3 yearsCustoms duty exemption on import of R&D equipmentsSoft CollateralsRepayment in six monthly nine installmentsNo prepayment / commitment / processing charges.Equity in public entities upto 25% of project costGrants-in aid to projects of national interest
12 What can be funded: Development and commercialisation of Soft Finance to Innovating CompaniesWhat can be funded: Development and commercialisation ofNew 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 EngineeringChemicalsEnergy and Waste UtilizationInformation & CommunicationTechnologiesAgriculture
14 TDB SUPPORT IS NOT AVAILABLE Soft Finance to Innovating CompaniesTDB SUPPORT IS NOT AVAILABLERefinancingBasic ResearchEstablishment of new R&D centresTravel, Conferences, Workshops etc unless they form part of project approved by TDBWriting of books, reports unless they are essential component of approved projectMere creation of technical infrastructureMore than 2 projects at a time to an industrial concernAn industrial concern that is sick
15 TDB PROJECT APPRAISAL & FUNDING MODEL Soft Finance to Innovating CompaniesTDB PROJECT APPRAISAL & FUNDING MODELDelegation Stage 1Loan applicationUpto Rs. 2.5 crores ( 10 copies)2 monthsISCPersonal hearingto the applicantNOYESChairpersonYESLetter of Intent
16 TDB PROJECT APPRAISAL & FUNDING MODEL Soft Finance to Innovating CompaniesTDB PROJECT APPRAISAL & FUNDING MODELDelegation Stage 2Loan applicationUpto Rs. 10 crores ( 10 copies)ISCPersonal hearingto the applicantNOYES3 -4 monthsPECNOYESSub –Committee ofthe TDB BoardYESLetter of Intent
17 TDB PROJECT APPRAISAL & FUNDING MODEL Soft Finance to Innovating CompaniesTDB PROJECT APPRAISAL & FUNDING MODELDelegation Stage 3Loan applicationabove Rs. 10 crores ( 10 copies)ISCPersonal hearingto the applicantNOYESPEC> 4 monthsNOFinancialDue DiligenceYESNOTDB BoardYESLetter of Intent
18 Soft Finance to Innovating Companies Cost of the ProjectHeads of expenditureTotalLandSite DevelopmentBuilding/Civil worksa. Factoryb. Administrativec. OthersPlant & Machinerya. Importedb. IndigenousMiscellaneous FixedassetsTechnical know-how &Engg. Consultancy feeCost of filing patentsContingencyMargin money for WCExpenditure Incurred till the date of applicationExpenditure to be incurredLandSite DevelopmentBuilding / Civil Works(i)Factory(ii)Administration(iii)OthersPlant & Machinery(i)Imported(ii)IndigenousMiscellaneous Fixed AssetsElectricalsTechnical Know-how FeesCost of filling patent(s)Preliminary &Pre-operative ExpensesMarketing & Travel ExpensesTDB support is limited to 50% of the project cost to be incurred on the date of the applicationDebt: equity ratio of 1.5:1Others (specify)Interest during ConstructionContingencyMargin Money for working capitalTotal
19 Means of Finance Soft Finance to Innovating Companies Status on date AdditionalAmountProposedTotalEquityPromotersOthers (specify)LoanFinancial InstitutionBankOthers (specify)Assistance fromTDB Loan or Equity (specify)Total
20 Project completion & Repayment Soft Finance to Innovating CompaniesSubmission of applicationProposals are screened by Internal Screening Committee on the following aspectsPoint of view of Completeness of the ApplicationObjective of the ProjectStatus of the TechnologyTrack Record of the ApplicantProject CostInternal ScreeningProject EvaluationSigning Loan AgreementProject MonitoringProject completion & Repayment
21 Project completion & Repayment Soft Finance to Innovating CompaniesProposals are Evaluated by Project Evaluation Committee on the following criteriaSoundness, Scientific Quality and Technical MeritPotential for Wide Application and the benefits expected to accrue from CommercialisationAdequacy of the Proposed EffortCapability of the R&D Institution in the proposed Action NetworkOrganisational and Commercial Capability of the Enterprise including its ResourcesReasonableness of the Proposed Cost and Financing PatternMeasurable Objectives, Targets and Mile-stonesTrack Record of the EntrepreneurSubmission of applicationInternal ScreeningProject EvaluationSigning Loan AgreementProject MonitoringProject completion & Repayment
22 Signing of Loan Agreement Soft Finance to Innovating CompaniesSigning of Loan AgreementBased on the recommendations of PEC, the Board may approve the projectFor bigger projects, due-diligence exercise may be conductedThe terms of loan assistance may differ based on the type of projectLoan agreements are signed at New DelhiAn Agreement is signed in duplicateSubmission of applicationInternal ScreeningProject EvaluationSigning Loan AgreementProject MonitoringProject completion & Repayment
23 Project completion & Repayment Soft Finance to Innovating CompaniesSubmission of applicationProject MonitoringProject is monitored by PMC consisting of technical & financial expertsBefore each monitoring, the enterprise is required to submit the prescribed returnsMonitoring 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 projectBased on the recommendations of PMC, next instalment of assistance may be released, or appropriate decision taken by the BoardInternal ScreeningProject EvaluationSigning Loan AgreementProject MonitoringProject completion & Repayment
24 Project Completion & Repayment Soft Finance to Innovating CompaniesProject Completion & RepaymentOn completion of the project, completion report is required to be submitted.Repayment is spread over a period of 5 yearsRepayment commences after one year of completion of the projectPayment of accumulated interest is spread over 3 years commencing after one year from the start of the repaymentAll the payments/ repayments are payable at DelhiSubmission of applicationInternal ScreeningProject EvaluationSigning Loan AgreementProject MonitoringProject Completion &Repayment
25 Seed Capital SchemeTDB 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 FrameworkFlexibilities of Terms
26 Policy Seed Capital Scheme Maximum grant by TDB : Rs one crore to the Corpus.TBIs/ STEPs must havefor 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 ProceduresProposals2 monthsCommittee of Independent ExpertsPersonal hearingto the applicantTDB ChairpersonYESLetter 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 incubateesQuality 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 thefollowing 36 STEPs / TBIs:-JSSATE – STEP, NoidaVIT VelloreCIIE – IIM, AhmedabadTREC-STEP, TiruchirappalliSINE – IIT, BombayPSG- STEP, CoimbatoreSJCE- STEP, MysoreTBI- KEC, Perundurai, ErodeSIDBI Innovation and Incubation Centre, IIT KanpurICRISAT, Pantancheru, HyderabadNIT, KarnatakaIIT, Madras, ChennaiNCL, PuneAmity University Incubator, NoidaAmrita TBI, KeralaSIDBI, IIT KanpurContd………..
31 Support for start-ups in incubators TREC-STEP, TiruchirapallyJSSATE-STEP, NoidaManipal University, TBI, Manipal.NDBI, NID, AhmedabadNIT, CalicutTechnopark-TBI, KeralaIKP Knowledge Park, SecunderabadBITS, Pilani, RajsthanFITT, IIT DelhiVillgro Innovation Foundation, ChennaiEkta Incubation Centre, KolkataeHealth TBI, BangaloreIAN Incubator, New DelhiIIIT, HyderabadS&T Park, PuneSTEP, IIT KharagpurIIT, GuwahatiKIIT-TBI, BhuwaneshwarCIIE-IIM, AhmedabadMITCON-TBI, Pune
32 Support for start-ups in incubators (5th round) TDB has provided financial assistance of Rs. 5 crores to thefollowing 10 STEPs / TBIs in fifth round during :-Ekta Incubation Centre, KolkataeHealth TBI, BangaloreIAN Incubator, New DelhiIIIT, HyderabadS&T Park, PuneSTEP, IIT KharagpurIIT, GuwahatiKIIT-TBI, BhuwaneshwarCIIE-IIM, AhmedabadMITCON-TBI, Pune
33 Joint FinancingTDB 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.SectorNumber of AgreementsTotal costSanctioned by the Board1Health & Medical63885.08277.032Engineering50466.56161.43Electronics35.519.754Chemical19154.4450.985Agriculture125.1840.526Energy & Waste utilization8132.3655.987Tele- communication1190.0433.85Defence and Civil Aviation2.209Road Transport10527.0481.20Air Transport142.167.80Information Technology32274.98112.0112Others31682.83199.50Total248*As on 31st March 2011
35 Total Investment is Rs 954.64 crores as on March, 2011 Break-up of TDB InvestmentsVenture Funds, 14.92%Grant, %Loan, %Equity, 2.55%Total Investment is Rs crores as on March, 2011
36 ACHIEVEMENTS OF TDB15 years of rich experience in funding commercialization of new technologies and handholding with enterprisesSo far, TDB has signed 248 agreements with over Rs croreLeveraged more than Rs crore of external funding from FIsProjects are spread over 17 states / Union Territories and almost in all the industry segmentsTDB has emerged as a major promoter of first generation technopreneursFirst 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 forPartnership/NetworkingOpportunities toCommercialize InnovationsFor further information, please contact :SecretaryTechnology Development BoardDepartment of Science & TechnologyWing-A, Ground Floor, Vishwakarma BhawanShaheed Jeet Singh MargNew Delhi –E: mail :Website: