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Govt taps MSMEs, startups for defence tech, sanctions Rs 1,264 cr projects

India's transformation into a defence tech hub is being driven by initiatives to promote innovation, self-reliance, and collaboration among startups, MSMEs, and academia

India's defence maintenance, repair, and overhaul (MRO) sector is poised for transformative expansion over the next five years, as global aerospace giants and domestic players collaborate to establish world-class facilities. With companies like Lockh
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Bhaswar Kumar
4 min read Last Updated : Dec 06 2024 | 8:44 PM IST
Several initiatives aimed at transforming India into a global hub for defence research and technology, involving projects worth an estimated Rs 1,264 crore and significant participation from MSMEs, start-ups, and academia, have been rolled out by the government, according to Minister of State for Defence Sanjay Seth, who provided key updates in a written reply in the Lok Sabha on Friday.
 
The details provided by Seth were shared by the Ministry of Defence (MoD) in an official release.
 
Over Rs 300 cr allocated for TDF scheme projects
 
Among the key initiatives is the Technology Development Fund (TDF) scheme, a flagship programme under the MoD, executed by the Defence Research and Development Organisation (DRDO).
 
To date, a total of 79 projects, worth Rs 334.02 crore, have been sanctioned under the TDF scheme for the development of defence technologies, Seth informed the Lok Sabha.
 
The TDF scheme is designed to encourage industries, particularly micro, small, and medium enterprises (MSMEs) and start-ups, to develop cutting-edge defence technologies.

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In line with the government's 'Aatmanirbhar Bharat' (Self-reliant India) vision, the scheme aims to integrate new industries into the design and manufacturing processes of defence technologies. Under the scheme, the government provides funding of up to Rs 50 crore per project as a grant-in-aid.
 
DRDO sanctions 264 projects worth Rs 930 cr
 
Another significant development is the establishment of the DRDO Industry Academia Centres of Excellence (DIA-CoEs), which aim to foster collaboration between academia, industry, and DRDO.
 
The DRDO has established 15 DIA-CoEs across the country and sanctioned approximately Rs 930 crore for 264 projects under its Grants-in-Aid scheme, according to Seth's written reply.
 
These centres, located at prestigious institutions such as the Indian Institute of Science (IISc) Bangalore, various Indian Institutes of Technology (IITs), and central and state universities, focus on research in identified defence and security areas. These centres are equipped with state-of-the-art labs and infrastructure to attract top-tier researchers and innovators, according to the MoD release.
 
iDEX scheme and Dare to Dream Innovation Contest
 
The government has also launched the Innovations for Defence Excellence (iDEX) framework, designed to foster innovation in the defence and aerospace sectors by engaging MSMEs, start-ups, individual innovators, R&D institutes, and academia.
 
A scheme to scale up iDEX was launched in May 2021 with a budget of Rs 498.80 crore for the five-year period from 2021-22 to 2025-26, said the MoD release. The scheme aims to provide financial support to nearly 300 start-ups, MSMEs, and individual innovators, as well as 20 partner incubators under the Defence Innovation Organisation (DIO) framework.
 
Seth also informed that in a bid to further encourage innovation, DRDO has been organising the Pan India Dare to Dream Innovation Contest every year since 2019 to bring together innovators, entrepreneurs, individuals above 18 years, and start-ups (recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) and with Indian founders) to present innovative ideas in the fields of defence and aerospace. Through this contest, DRDO invites ideas, selects the best, and awards them.
 
Four editions of the Dare to Dream Contest have already been successfully conducted. Dare to Dream 5.0 was launched by the Defence Minister on October 18, 2024, and is currently ongoing. A fixed amount is provided as a cash prize to the winners in each category. A total of Rs 5.43 crore has been awarded to the winners of the four editions of the Dare to Dream Contest as cash prizes. The selected individuals or companies are benefitting as DRDO supports them in transforming the awarded ideas into prototypes through the TDF scheme. 
 

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Topics :Ministry of DefenceTech firmsdefence firmsdefence expenditure

First Published: Dec 06 2024 | 8:44 PM IST

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