Technology Acquisition and Development Fund: Explained

Introduction


Technology Acquisition and Development Fund (TADF) is set up recently by the department of Commerce and Industry to fund green development projects in India.

About TADF

  • TADF established under National Manufacturing Policy 2011
  • Implementing agency is Department of Industrial Policy and Promotion (DIPP)
  • Funds are managed by a joint venture GITA (Global Innovation and Technology Alliance)

Need for TADF

  • SME contribute to about 45 percent of India exports
  • SME employs about 60 million Indians and ranks after Agriculture as the largest employer
  • More than 6000 products are released yearly by SME giving a lot of scope in innovation in the SME sector
  • TADF was established to encourage SME to innovate and manufacture green products

Objective of TADF

  • Facilitation of Green, Clean and Energy efficient technologies through MSME
  • Projects under TADF take the form of patents, customized products, technology, specialized services and industrial design

TADF Schemes

  • Direct technology acquisition – 50 % subsidy or 20 lakhs reimbursed for technology transfer
  • Indirect technology acquisition - 50 % subsidy or 20 lakhs reimbursed for mutually agreed value
  • Manufacturing technology/equipment – 10 % subsidy on capital expenses up to a maximum of 50 lakhs
  • Incentives for green manufacturing – Green building construction, environment friendly measures etc


Features of TADF

  • Financial assistance to Indian owned MSME 
  • Scheme applicable to all MSME in the NIMZ (National Investment and Manufacturing Zones)
  • SME patent and technology acquisition costs covered
  • Direct patent acquisition costs reimbursed
  • Incentives given to adoption of innovation technologies in water conservation, rain water harvesting, pollution control, waste water treatment, green buildings and renewable energy projects
  • Green buildings are encouraged through TADF
  • Incentives given to reduced energy consumption and adoption of solar power systems

Conclusion

  • TADF contributes directly to the ‘Make In India’ Scheme to promote manufacturing in India 
  • Scheme facilitates the acquisition of green and clean technologies by SME
  • TADF helps bridge the technology transfer between international and domestic player at affordable cost
  • TADF schemes will promote green concept among MSME
  • Adoption of clean and green technologies will be encouraged
  • Environmental pollution will be reduced to a great extent through proper waste disposal mechanisms and adoption of green technologies
  • TADF will benefit both the manufacturing sector and at the same time contribute to the environment as a whole through adoption of clean and green technologies

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