Executive Summary:
This document summarizes the Defence Research and Development Organisation's (DRDO) contributions to technological advancements and its technology transfer initiatives to the private sector, particularly MSMEs and startups, as of August 8, 2025. It outlines the support provided through the Technology Development Fund (TDF) Scheme and the terms for technology transfer, including licensing agreements and royalty charges. The document also specifies the number of technology transfer agreements signed with private industries.
Key Points / Main Content:
DRDO's Contribution to Technological Advancement:
* DRDO supports private industries, especially MSMEs and Startups, through the Technology Development Fund (TDF) Scheme with Grants-in-Aid for developing cutting-edge defence technologies.
* A total of 81 projects worth Rs. 343.90 Cr have been sanctioned under the TDF Scheme, resulting in 30 successfully developed technologies.
* DRDO transfers dual-use spin-off technologies to industries, with 637 Licensing Agreements for Transfer of Technology (LAToT) signed to date.
Technology Transfer to Private Sector:
* DRDO provides Technology Transfer Documents (TTD) and support to Indian Industry.
* Technology is transferred without ToT Fee to Development cum Production Partner (DcPP), Development Partner (DP), and Production Agency (PA).
* A one-time ToT Fee of 5% of the total project development cost is charged to other industries.
* Nil Royalty is charged on net sales to Indian Armed Forces and other Govt Departments; 2% royalty is charged for sales in the Indian commercial market and exports.
* Over 2100 Licensing Agreement for Transfer of Technology (LAToT) have been signed with industries, including 256 in 2024 alone.
* DRDO enables ToT for DRDO sponsored DIACoE projects through tripartite agreements.
Private Industries Involvement:
* 1918 Licensing Agreement for Transfer of Technology (LAToTs) have been signed with private industries, including startups and MSMEs.
Economic Value and Job Creation:
* No study has been carried out to estimate the economic value generated or the number of jobs created as a direct result of these technology transfers.
Impact Analysis:
Private Industries (including MSMEs and Startups):
* Impact: Benefit from Grants-in-Aid, technology transfer, and support from DRDO for developing defence technologies and commercial applications.
* Action Required: Engage with DRDO to apply for TDF Scheme funding, enter into Licensing Agreements for Transfer of Technology (LAToT), and leverage DRDO's support for technology development.
Indian Armed Forces and Government Departments:
* Impact: Access to indigenously developed defence technologies with no royalty charges on net sales.
* Action Required: Collaborate with DRDO and private industries to identify and procure technologies that meet their requirements.
DRDO:
* Impact: Facilitates technology transfer, supports private sector development, and contributes to national innovation.
* Action Required: Continue implementing the TDF Scheme, providing technology transfer support, and fostering collaboration with private industries.
Key Entities Referenced
Defence Research and Development Organisation: A government agency under the Department of Defence Research and Development in the Ministry of Defence, responsible for military research and development.
SHRI SHRIRANG APPA CHANDU BARNE: Member of Parliament who raised a question in the Lok Sabha.
Technology Development Fund: A scheme by DRDO to provide Grants-in-Aid to private industries, especially MSMEs and Startups, for development of defence technologies.
MSMEs: Micro, Small and Medium Enterprises, which are targeted beneficiaries of DRDO's technology transfer initiatives.
Startups: Startups, which are targeted beneficiaries of DRDO's technology transfer initiatives.
Ministry of Defence: The Indian government ministry responsible for overseeing the country's defence forces.
Licensing Agreement for Transfer of Technology: Agreements between DRDO and industries for the transfer of developed technologies.
Indian Armed Forces: The military forces of India.
GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
DEFENCE RESEARCH & DEVELOPMENT ORGANISATION
LOK SABHA
UNSTARRED QUESTION NO. 3353
TO BE ANSWERED ON 08th AUGUST, 2025
CONTRIBUTION OF DRDO
3353. SHRI SHRIRANG APPA CHANDU BARNE:
SMT. BHARTI PARDHI:
SHRI OMPRAKASH BHUPALSINH ALIAS PAVAN RAJENIMBALKAR:
Will the Minister of DEFENCE be pleased to state:
(a) the details of significant contributions of the Defence Research and Development
Organisation (DRDO) and its associated labs to civilian technological advancements, scientific
research and national innovation ecosystems;
(b) whether the Government is facilitating technology transfer from DRDO to the private sector
for commercial applications, if so, the details thereof;
(c) the details of private industries, particularly MSMEs and startups, which have successfully
adopted DRDO-developed technologies for defence manufacturing; and
(d) the details of estimated economic value generated through these technology transfers along
with the number of jobs created in defence manufacturing sector as a direct result of DRDO's
efforts?
A N S W E R
MINISTER OF STATE (SHRI SANJAY SETH)
IN THE MINISTRY OF DEFENCE
(a) DRDO under the Ministry of Defence through Technology Development Fund (TDF)
Scheme provide Grants-in-Aid to private industries especially MSMEs and Startups for the
development of the cutting edge defence technologies/ systems/ sub-systems/ components up
to the prototype level along with strong handholding, mentorship and support of DRDO for
successful realisation of defence technologies against requirements of SHQs/ DRDO/ DDP. At
present, a total of 81 projects of worth Rs. 343.90 Cr have been sanctioned to various industries
under the TDF Scheme. So far, 30 technologies have been successfully developed.
Also, DRDO developed dual use spin off technologies are transferred to industries. Till
date, 637 Nos of Licensing Agreement for Transfer of Technology (LAToT) have been signed
for the dual use (spin off) technologies for benefit of society at large.
…2/--2-
(b) DRDO provides the relevant ‘know-how’ in the form of Technology Transfer
Documents (TTD) and handholding support to Indian Industry. Technology is transferred to
Development cum Production Partner (DcPP)/ Development Partner (DP)/ Production Agency
(PA) without any ToT Fee and to other industries with a one-time ToT Fee @ 5% of total
project development cost. ‘Nil’ Royalty is charged on net sales to Indian Armed Forces and
other Govt Departments. Only 2% royalty is charged for sales in Indian commercial market
and exports. Uptill now, more than 2100 Licensing Agreement for Transfer of Technology
(LAToT) have been signed with industries. In year 2024 alone, 256 LAToT have been signed.
DRDO has enabled ToT for DRDO sponsored DIA-CoE projects, which can be directly
given by institutes as tripartite agreement. This is one more pathway created to facilitate
technology transfer.
(c) Till date, 1918 Nos Licensing Agreement for Transfer of Technology (LAToTs) has
been signed with the private industries (including startups and MSMEs).
(d) No such study has been carried out.
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