Funding through the Research, Development and Innovation Fund (TDB as Second Level Fund Manager)
A programme by Technology Development Board (TDB) (Technology Development Board)
A newer national route where TDB lends to companies and startups building strategic technologies; the scheme states it does not give grants.
At a glance
| Best for | Indian-controlled companies, including startups, building strategic or sunrise-sector technology from readiness level 4 upward |
|---|---|
| Stage | MVP – Growth |
| Duration | Loan tenure stated as 12 to 15 years depending on the project |
| Cost | Free, takes equity |
| Run with | Department of Science & Technology |
About Funding through the Research, Development and Innovation Fund (TDB as Second Level Fund Manager)
The Research, Development and Innovation Fund is a Department of Science and Technology scheme approved by the Union Cabinet on 1 July 2025 to push private investment into research and innovation. TDB acts as a second level fund manager for it, which means the money reaches companies through TDB. It is listed as an open call on TDB's homepage with a live application button, and no closing date is published.
Be clear on the instrument: the scheme's own page says it does not provide grants, and does not provide short-term loans either, since those are expected to come from commercial lenders. What it provides is long-tenure collateral-free debt, optionally with equity.
What you get
- A long-tenure collateral-free loan at a concessional rate, disbursed in tranches against projected use of funds and milestones achieved
- Optionally equity participation alongside the loan, capped as a share of the assistance and of total shareholding
- Or a soft loan with a debt-to-equity conversion feature, where part of the sanctioned debt converts to equity at a pre-agreed discounted valuation if you raise a follow-on round at a significantly higher valuation, with exit by promoter buy-back or a block sale alongside other investors
Who can apply
- Any legal entity registered in India under the Companies Act 2013, the Indian Partnership Act 1932 or the Limited Liability Partnership Act 2008, including startups as defined by the DPIIT notification of 19 February 2019
- Principal place of business or operations in India, registered global headquarters in India, and under the control of resident Indian citizens as defined in DPIIT's consolidated FDI policy
- Developing research-intensive technology at technology readiness level 4 and above, so an earlier stage than TDB's core route accepts
Which sectors: energy security, transition and climate action; deep technology including quantum, robotics and space; artificial intelligence applied to Indian problems in agriculture, health and education; biotechnology, biomanufacturing, synthetic biology, pharmaceuticals and medical devices; the digital economy including digital agriculture; plus technologies whose indigenisation matters for strategic or economic reasons.
How to apply: through the apply link on TDB's page for this route. You bring the remaining project cost yourself or from commercial sources.
Where to apply
Other TDB programmes
- TDB Core FundingTDB's standing, all-year route: project financing for an Indian company commercialising an indigenous technology, given mainly as a soft loan.
- India-Finland Joint Innovation Call 2026An open joint call where an Indian company and a Finnish partner apply together; the Indian side is funded by grant on a reimbursement basis.
- Bilateral international joint calls (DST/TDB country programme)A standing route of joint calls with partner countries' innovation agencies, each opening and closing on its own dates; all are closed except the India-Finland call.
- Call for proposal: Empowering Tech Startups Ready for CommercializationA dedicated startup call that closed in April 2025; it is worth knowing because it set out exactly what TDB wants from a startup applicant.
- Sector calls for proposalsPeriodic calls aimed at one named sector at a time, run on TDB's standard funding terms; every one listed on its site has closed.