Project Appraisal Model

1
FINANCIAL ASSISTANCE FROM TDB A UNIQUE SCHEME
FOR ENTREPRENEURS BY Dr. Mahendra
Pal Scientist F TECHNOLOGY DEVELOPMENT
BOARD DEPARTMENT OF SCIENCE TECHNOLOGY A-8,
USO Road, Qutab Institutional Area NEW DELHI
110067 Tel [phone] Fax. [phone]
1862 m_pal52_at_rediffmail.com www.tdbindia.org C
oimbatore, 7th October 2006
2
TECHNOLOGY DEVELOPMENT BOARD

• Govt. Of India constituted TDB on 1st Sept 1996
  under the provision 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
  Loan, Equity or Grant

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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
  Loan, Equity or Grant
• Develop linkages between RD institutions and
  Industry for catalyzing the adaptation of
  innovative technologies

4
ROLE OF THE BOARD

• Take decision on Technical Administrative
• part of the proposals
• Review/ Advise/ take decision on new
• initiatives for technology development
  commercialization
• Review the progress of projects funded
• Advise/ take decision on legal issues
• Review/ Advise on overall functioning of TDB
• Any other issues that may be required for
  promoting commercialization of innovative
  technologies

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Path of Innovation Support System
Present Scenario
Technology Incubation Centers (ARCI, IITs, IISc..
STEPs, GIAN, IndiaCo.)
Department of Various Ministries, ACADEMIA (CSIR
Labs,University)
?? .. gap .. ?? SBIR/STRR type of funds
SIDBI, VCF, Bank?, FI ?..
DBT, DST-SERC
Technology Development Board
TIFAC, NMITLI, DSIR, ICICI
Innovation Lab/ industry RD
Useable Prototype
Commercialization Market Launch
Pilot production
D10
R1
C100
Funds requirement (commercial risk )
RD back up for SME (technology risk )
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CHALLENGES IN COMMERCIALIZATION OF EMERGING
TECHNOLOGIES

• Long gestation period
• 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 Fin.Institution/
  Banks
• High Risk
• Knowledge and RD Intensive
• Difficult to appraise the viability

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Where from TDB gets its Funds?

• The RD 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

8
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
• Custom duty exemption on import of RD equipments
  
• No Processing/Administrative Charges
• Soft Collaterals
• Moratorium of 1 year

9
TDB FUNDING CRITERIA

• Who can be funded ?
• Commercial enterprises, startup companies
  (excluding sole entrepreneur/ proprietorship
  concern)
• Source of Technology
• National Laboratories
• In-house RD unit of a company
• recognized by DSIR
• Individual 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
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TDB SUPPORT IS NOT AVAILABLE FOR

• Refinancing
• Basic Research
• Establishment of new RD centre
• 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

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TDB Project Appraisal Funding Model
Application/ Proposal
530
Additional information
ISC
R E J E C T
NO
70
3 - 4 months
YES
PEC
Modify
NO
(Domain experts)
Due diligence gt Rs 5 cr TDB
Rs 20 cr PC
lt Rs 5 cr.
Signing Loan Agreement (Release of 1st
installment)
Board Approval
PMC (further release of loan)
Techno-managerial support along with finance
Project Completion (Success/ Failure 7525)
Repayment of loan
Close
12
Break-up of TDB Funding
Venture Funds 19
Loan 69
Grant 8.5
Equity 3.5
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STATUS OF FINANCIAL ASSISTANCE BY TDB as on
31-3-2006
Instrument Sanctioned (Rs. In Crore) Disbursement (Rs. In Crore)
LOAN 516.13 409.50
GRANT 24.36 24.36
EQUITY 64.40 56.30
OTHERS 130.00 36.25
TOTAL 734.89 526.41
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SECTOR-WISE FUNDING BY TDB
Sl. Sector No. of Agreements Total cost Sanctioned by TDB
Sl. Sector (Rs in crores) (Rs in crores) (Rs in crores)
1 Health Medical 42 640.81 188.04 25.6
2 Engineering 35 303.78 99.42 13.5
3 Chemicals 16 112.89 36.18 5.0
4 Food Agriculture 15 77.98 24.52 3.3
5 Road Transport 10 527.04 81.20 11.1
6 Air Transport 2 142.10 67.80 9.2
7 IT Technology 17 81.25 34.27 4.7
8 Energy Waste Utilization 7 104.91 47.23 6.4
9 Tele-communication 7 55.56 20.73 2.8
10 Others 9 468.83 135.50 18.4
Total Total 160 2515.15 734.89 100
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NEW INITIATIVES

• Invested in Venture Funds
• ITVUS-UTI,APIDC VF, UTIVF-AIF
• Invested in Incubation Centres IITM,IIMA,TRECSTEP,
  VITTBI,JSSATE
• Strengthening linkages between RD Labs.,
  academic institutions and Industry
• Partnerships with foreign institution for joint
  collaboration on technology transfer( France and
  Spain)

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ACHIEVEMENTS OF TDB

• 10 years of rich experience in funding
  commercialization of new technologies and
  handholding with enterprises
• TDB has Funded more than 125 enterprises with
  over Rs. 735 crore
• Leveraged more than Rs. 1800 crore of external
  funding
• Projects are spreaded in over 16 states and
  almost in all the industry segments

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EMPHASIS

• Encourage projects from new enterprises and new
  entrepreneurs
• Enhance linkages with industry associations and
  RD institutions, Incubation centre
• 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

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MAJOR BENEFICIARIES OF TDB

• Biocon Limited

• CSIR

• Shantha Biotechnics

• Samtel Colour Limited

• Bharat Biotech

• Selco International Ltd.

• Ranbaxy Limited

• Eicher Motors Limited

• AV Alloys Limited

• Reva Electric Car Ltd.

• Picopeta Simputers

• Radiant Cables Private Limited

• Ravindranath GE Medical (P) Ltd.

• Tata Motors Limited

• Legend Tech. Pvt. Ltd.

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BENEFICIARIES
HEALTH AND MEDICINE
Biocon India Limited

• The company has proposed the production of
  Mycophelonate Mofetil through PlaFractor,
  technology.

• Mycophelonate Mofetil is an immuno-suppressant.

(In Rs. Lakhs)
Total cost of Project 2560 TDB Loan Assistance
970
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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
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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
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BENEFICIARIES
HEALTH AND MEDICINE
Ranbaxy Laboratories Limited

• Signed a loan agreement with the Board in
  February 1998.

• Develops anti- bacterial including Cefuroxime
  Axetil, widely used for the treatment of bone.

(In Rs. Lakhs)
Total cost of Project 310 TDB Loan Assistance
115
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BENEFICIARIES
HEALTH AND MEDICINE
Ravindranath GE Medical Associates Private
Limited

• The company has set up a 150 bed facility named
  Global Hospital.

• It Specializes in organ transplants including
  liver, kidney, pancreas, small intestine and
  bone-marrow.

(In Rs. Lakhs)
Total cost of Project 2526 TDB Loan Assistance
1510
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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
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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
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BENEFICIARIES
ENGINEERING
Legend Technologies (India) Pvt. Ltd.

• Manufacture of slip rings based on the technology
  developed by Vikram Sarabhai Space Centre,
  Thiruvananthapuram.

• Commercial production of slip rings commenced
  during 2002-2003.

(In Rs. Lakhs)
Total cost of Project 200 TDB Loan Assistance
80
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BENEFICIARIES
ENGINEERING
Radiant Cables Private Limited

• Developed an unique blend of electrical and
  mechanical characteristics in wires and cables.
• Capable of excellent and consistent
  performance and long life.

(In Rs. Lakhs)
Total cost of Project 1206 TDB Loan Assistance
440
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BENEFICIARIES
INFORMATION TECHNOLOGY
PicoPeta Simputers Private Limited

• The Simputer, or the simple, inexpensive,
  multilingual, peoples computer, is an ideal
  field device for a variety of applications.

• The linux based device is slightly larger than a
  palm but has ten times the processing speed.

(In Rs. lakhs)
Total cost of Project 200 TDB Grant 200
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BENEFICIARIES
AIR TRANSPORT
Council of Scientific and Industrial Research

• 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.

(In Rs. Lakhs)
Total cost of Project 131.38 TDB Grant
53.80 TDB Loan Assistance - 11.00
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BENEFICIARIES
ROAD TRANSPORT
Eicher Motors Limited

• The company has been provided financial
  assistance by the Board for design and
  development of 12 tons 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 HCV

(In Rs. Lakhs)
Total cost of Project 6154 TDB Loan Assistance
- 1500
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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
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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

( Rs. in crore)
Total cost of Project 342 TDB Loan Assistance -
30
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FEW OF THE SUCCESSFUL VENTURES 1
Winner of Awards 2006

• Bharat Biotech International Limited, Hyderabad
  and Institute of Genomics and Integrative
  Biology, Delhi (Winner of National Award)

• SEC Industries Private Limited

• Eagle Engineering Works , Chennai

(Winner of Award to SSI Unit)
(Winner of Award to SSI Unit)
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FEW OF THE SUCCESSFUL VENTURES 1
Winner of Awards 2005

• Banyan Networks,
• Broadband Division of Midas
• Communication Technologies
• Private Limited
• (Winner of National Award 2005)

• Indian Institute of Technology-
• Madras, Chennai,
• (Winner of National Award 2005)

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FEW OF THE SUCCESSFUL VENTURES 2
Winner of Awards 2004

• Indian Oil Corporation
• Limited, New Delhi.
• (Winner of National Award)

• Mecpro Heavy Engineering
• Ltd, New Delhi.
• (Winner of Award to SSI Unit)

• Sahajanand Laser
• Technology, Ahmedabad.
• (Winner of Award to SSI Unit)

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FEW OF THE SUCCESSFUL VENTURES 3
Winner of Awards 2003

• M/s Shantha
• Biotechnics Private
• Limited, Hyderabad .
• (Winner of National Award)

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FEW OF THE SUCCESSFUL VENTURES 4
Winner of Awards 2002

• TVS Motor Company
• Limited, Chennai
• (Winner of National Award)

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FEW OF THE SUCCESSFUL VENTURES 5
Winner of Awards 2001

• M/s TTK Healthcare
• Limited, Chennai
• (Winner of National Award)

• M/s Midas Communication
• Technologies Private
• Limited, Chennai (Winner of Award to
  SSI Unit)

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FEW OF THE SUCCESSFUL VENTURES 6
Winner of Awards 2000 1999

• M/s Tata Engineering
• and Locomotive Company
• Limited, Mumbai
• (Winner of National Award 2000)

• M/s Shantha Biotechnics
• Private Limited, Hyderabad (Winner of
  National Award 1999)

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THANK YOU
41

QUESTIONS PLEASE !