The Department of Telecommunications (DoT) aims to finance six chip design projects through the Telecom Technology Development Fund (TTDF) this year, with project values ranging from Rs 50 to 100 crore. These programmes are different from the India Semiconductor Mission scheme. They are aimed at different areas, such as next-generation broadband consumer premise equipment (CPE), 5G modems and radio chips for dongles, Internet of Things (IoT) products, satellite communication equipment, and digital signal processors for 5G infrastructure.
With the TTDF 2.0 scheme’s proposal submission deadline closing on October 31, 2023, over 200 applications were received from startups, local companies, and academic institutions. These applications focus on developing technologies for 5G, 6G, backhaul CPE for mobile and satellite communication, telecom network cybersecurity, routers, and other telecom sectors. Currently, the government has disbursed Rs 300 crore to approximately 400 companies under the TTDF scheme, with another 600 proposals being evaluated in collaboration with C-DOT.
Evaluation criteria include technical feasibility, market size, impact on target consumers, import substitution potential, and other factors. Established on October 1, 2022, TTDF supports rural-specific communication applications, indigenous manufacturing, and the creation of intellectual property for telecom products and solutions.
Funding for TTDF disbursements is drawn from the Digital Bharat Nidhi (formerly Universal Service Obligation Fund), with anticipated disbursements reaching Rs 3,000–4,000 crore annually from FY24 onwards. As of December 31, 2023, the government’s disbursements from Digital Bharat Nidhi for rural connectivity stood at Rs 7,630 crore. In FY25, spending on rural connectivity via Digital Bharat Nidhi is estimated at Rs 19,000 crore, a 21 per cent increase from FY24.
Applicants under TTDF receive funding over a maximum two-year period in four instalments based on agreed milestones, with the first instalment constituting 15 per cent of the total grant, disbursed upon project completion and submission of the final report with the prototype or product.
