Published on February 7, 2008
Slide1: 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: WHAT IS 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. TDB provides financial assistance in the form of Soft Loan, Equity or Grant-in-aid. Slide3: THE MANDATE 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 Slide4: ROLE OF THE BOARD 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 Slide5: Technology Incubation Centers (ARCI, IITs, IISc.. STEPs, GIAN, IndiaCo….) SIDBI, VCF, Bank?, FI ?.. Department of Various Ministries, ACADEMIA (CSIR Labs,University) DBT, DST-SERC… Technology Development Board TIFAC, NMITLI, DSIR, ICICI Innovation Lab/ industry R&D Useable Prototype Commercialization & Market Launch Pilot production D:10 Funds requirement (~commercial risk … ) R&D back up for SME (~technology risk …) ?? .. gap .. ?? SBIR/STRR type of funds Path of Innovation & Support System – Present Scenario R:1 C:100 CHALLENGES IN COMMERCIALIZATION OF EMERGING TECHNOLOGIES: CHALLENGES IN COMMERCIALIZATION OF EMERGING TECHNOLOGIES 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?: Where from TDB gets its Funds? 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: SALIENT FEATURES OF TDB FUNDING 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 FUNDING CRITERIA 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 For Agriculture & Food Processing, IT and Designing & developing Special Engineering Machinery (above condition relaxed) Prototype Development should be completed TDB SUPPORT IS NOT AVAILABLE FOR: TDB SUPPORT IS NOT AVAILABLE FOR 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 TDB Project Appraisal & Funding Model: TDB Project Appraisal & Funding Model Application/ Proposal ISC PEC R E J E C T PMC (further release of loan) Signing Loan Agreement (Release of 1st installment) Project Completion (Success/ Failure :75:25) Repayment of loan Due diligence > Rs 5 cr TDB Rs 20 cr PC Board Approval Close YES NO Additional information Modify < Rs 5 cr. NO (Domain experts) 70% Techno-managerial support along with finance 530 3 - 4 months Slide12: Loan: 69% Equity: 3.5% Grant: 8.5% Venture Funds: 19% Break-up of TDB Funding STATUS OF FINANCIAL ASSISTANCE BY TDB : STATUS OF FINANCIAL ASSISTANCE BY TDB SECTOR-WISE FUNDING BY TDB: SECTOR-WISE FUNDING BY TDB NEW INITIATIVES: NEW INITIATIVES 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: ACHIEVEMENTS OF 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: EMPHASIS 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 Slide18: MAJOR BENEFICIARIES OF TDB Biocon Limited Shantha Biotechnics Bharat Biotech Ranbaxy Limited Ravindranath GE Medical (P) Ltd. AV Alloys Limited Picopeta Simputers CSIR Samtel Colour Limited Selco International Ltd. Eicher Motors Limited Reva Electric Car Ltd. Radiant Cables Private Limited Tata Motors Limited Legend Tech. Pvt. Ltd. Slide19: HEALTH AND MEDICINE The company has proposed the production of Mycophelonate Mofetil through ‘PlaFractor’, technology. Mycophelonate Mofetil is an immuno-suppressant. **Biocon India Limited** (In Rs. Lakhs) Total cost of Project – 2560 TDB Loan Assistance – 970 BENEFICIARIES Slide20: BENEFICIARIES HEALTH AND MEDICINE **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 Slide21: BENEFICIARIES HEALTH AND MEDICINE **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 Slide22: HEALTH AND MEDICINE Signed a loan agreement with the Board in February 1998. Develops anti- bacterial including Cefuroxime Axetil, widely used for the treatment of bone. **Ranbaxy Laboratories Limited** (In Rs. Lakhs) Total cost of Project – 310 TDB Loan Assistance – 115 BENEFICIARIES Slide23: BENEFICIARIES HEALTH AND MEDICINE **Ravindranath GE Medical Associates Private Limited ** The company has set up a 150 bed facility named Global Hospital. (In Rs. Lakhs) Total cost of Project – 2526 TDB Loan Assistance – 1510 It Specializes in organ transplants including liver, kidney, pancreas, small intestine and bone-marrow. Slide24: BENEFICIARIES ENGINEERING **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 meeting the basic specifications laid out at the beginning (In Rs. Lakhs) Total cost of Project- 698 TDB Loan Assistance- 300 Slide25: BENEFICIARIES ENGINEERING **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 Slide26: **Legend Technologies (India) Pvt. Ltd.** (In Rs. Lakhs) Manufacture of slip rings based on the technology developed by Vikram Sarabhai Space Centre, Thiruvananthapuram. Commercial production of slip rings commenced during 2002-2003. Total cost of Project – 200 TDB Loan Assistance – 80 ENGINEERING BENEFICIARIES Slide27: Developed an unique blend of electrical and mechanical characteristics in wires and cables. Capable of excellent and consistent performance and long life. **Radiant Cables Private Limited** (In Rs. Lakhs) Total cost of Project – 1206 TDB Loan Assistance – 440 ENGINEERING BENEFICIARIES Slide28: BENEFICIARIES INFORMATION TECHNOLOGY **PicoPeta Simputers Private Limited ** The Simputer, or the simple, inexpensive, multilingual, people’s computer, is an ideal field device for a variety of applications. (In Rs. lakhs) Total cost of Project –200 TDB Grant – 200 The linux based device is slightly larger than a palm but has ten times the processing speed. Slide29: **Council of Scientific and Industrial Research** (In Rs. Lakhs) National Aerospace 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 HAL, Bangalore Airport. Total cost of Project – 131.38 TDB Grant – 53.80 TDB Loan Assistance - 11.00 AIR TRANSPORT BENEFICIARIES Slide30: BENEFICIARIES ROAD TRANSPORT **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 1997. The company has produced 8 prototypes of the HCVs (In Rs. Lakhs) Total cost of Project – 6154 TDB Loan Assistance - 1500 Slide31: BENEFICIARIES ROAD TRANSPORT **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 Slide32: BENEFICIARIES ROAD TRANSPORT **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 Slide33: BENEFICIARIES ENERGY & WASTE UTILISATION **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 Slide34: Indian Oil Corporation Limited, N. Delhi THE TECHNOLOGY DAY AWARDS 2004 Shantha Biotechnics Ltd., Hyderabad 2003 TVS Motor Company Limited, Chennai 2002 TTK Healthcare Limited, Chennai 2001 TELCO (TATA), Mumbai Shantha Biotechnics Ltd., Hyderabad 2000 1999 Winner of National Awards Slide36: QUESTIONS PLEASE !