In recent years, the Technology Development Board (TDB) in the Department of Science and Technology (DST) has emerged as the major funding organization for the biotechnology sector. TDB was set up on September 1, 1996, to channel the funds generated through a 5 percent cess levied on all technology imports into India. The board draws its powers from the Technology Development Board Act, 1995.

TDB invests in equity capital or gives soft loans to industrial units, cooperatives and other agencies, as applicable, attempting development and commercial application of indigenous technology, or adapting importing technology to wider domestic applications. The board invests up to 25 percent in equity shares of the total project cost, including margin money for working capital. However, this investment will not exceed the paid-up share capital of the promoters. In some cases, instead of equity shares, soft loans at 5 percent annual interest rate is given on the basis of collateral guarantees for the duration of the project up to a maximum of three years. The repayments have to be done in five years and it starts a year after the completion of the project.

A strong linkage with government institutions is a must. For projects involving commercialization of technologies developed by a government institution, the company applying for assistance should have an agreement with the technology developing organization. TDB will also provide assistance to projects for commercialization developed with the financial support under the Home Grown Technology/mission projects/Technology Vision 2020 implementation projects of the Technology Information, Forecasting and Assessment Council (TIFAC). Projects supported by other government projects like the PATSER (Program Aimed at Technological Self Reliance) of the Department of Scientific and Industrial Research (DSIR) or the Technopreneur Promotion Program (TePP).

Where legal title to domestically generated intellectual property is held by an inventor of such property or by an industrial concern, such individual or industrial concern is also eligible to apply. In the case of commercializing imported technology, the board provides financial assistance mainly for effecting crucial modifications for wider domestic applications through a recognized R&D institution or through an individual or industrial concern and for further development of commercializable technology, imported when that technology is at "proof of concept" or design stage.

However, funding from the TDB is not available for refinancing, basic research, establishment of new R & D centers, any forms of grants-in-aid or loan for the mere creation of technical infrastructure and more than two projects at one time to an industrial enterprise.

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