The Department of Heavy Industry announced the scheme on “Enhancement of Competitiveness in the Indian Capital Goods Sector” vide gazette notification no. 7/6/2011-HE&MT dated 5^th November 2014. The Technology Acquisition Fund Programme is an industry driven initiative under this scheme, aimed towards assimilation of technology in a short span of time. In view of the objectives laid out in the 12^th Five Year Plan, TAFP mandates to provide funding to offset the higher cost of the best technology available globally. 

The TAFP will provide financial assistance to Indian Capital Goods sector to facilitate the acquisition of strategic and relevant technologies and also development of technologies through contract route, in-house route or through joint route of contract and in-house.

As per the 12^th FYP   Working Group report on “Capital Goods and Engineering Sector” the technology gaps have already been identified. For example, according to the report, sub-sectors such as Textile Machinery, Earthmoving Equipment, Machine Tools and Metallurgical machinery are weak in self-reliance as more than 50% of the demand is met through imports and the import content in domestic production is also high. Also, in all the seven prevalent CG sub-sectors target technologies to be developed have been identified.

TAFP will accord priority to projects to Indian Capital projects that seek technology   upgradation by Capital Goods Sector to cater to areas of national interest, e.g., Energy, Infrastructure, Transportation, Water Management, Environment and Sustainability Solutions, but need not be limited to these areas.

TAFP scheme will be applicable to Indian Capital Goods Sector units or their consortiums/clusters. The prospective applicants should have proven technical, financial and marketing background.  (refer above section – “TAFP at a Glance”). Also refer section – Eligibility 10.d of above gazette notification no. 7/6/2011-HE&MT dated 5th November 2014.

Funding for the following typical activities can be provided with appropriate limits:

• Financial support from the TAFP will be available to Indian   Capital   Goods Sector unit   or their consortium. The prospective applicants should have proven technical, financial and marketing background. Technology provider must not hold controlling stake in applicant’s company, however small equity holding may be acceptable. 
• Technology / Energy / Green / Efficiency / Productivity / Quality Audit / Evaluation / Assessment Studies and preparatory activities with objective of selecting the right technology for acquisition
• Outright purchase of Technology I Know-how from Technology Owners 
• IPR, Patent fees, Design fees, Engineering fees, Product Technology Evaluation  & certification payments, Royalty, know how payment and other payments to Technology  Owners/ licensors  towards technology acquisition. 
• Upgradation of production / testing facilities / R & D technology development Facilities
• Purchase of hardware / software for process & product improvement and Upgradation 
• Hiring/ training/ education of Manpower for process & product improvement and Upgradation  
• Training   of workers I operators for skill building in acquired technology
• Membership/contribution to Institutions providing Technical services
• Contract research payments
• Consortium technology development contributions  to  institutions
• Project/ technology   development I Faculty I Scholar I employees   sponsorship in Institutions 
• Other expenditures related to R & D, Innovation, Designs& Drawings, Technology Development, skill development   and higher technical education
• Setting up of Product or Technology Development Centers by industry Associations I Clusters   within Capital Goods Sector

Applicant should carry out a mandatory detailed assessment study/report by a third party specialized & accredited consultant/agency recognized by Govt. of India, on the proposed Technology to evaluate the following aspects in the context of improving the existing business proposition:

• Technical uniqueness of the proposed Technology in the context of area of application vis-à-vis other competitive technologies.
• Commercial Viability and appropriate justification for financial valuation of the “Proposed Technology”.
• Requisite level of details on Intellectual Property Rights (IPR) in relation to context of improving the existing business proposition. 

After carrying out a thorough secondary research and discussions with the relevant set of stakeholders, it may be concluded that the following strategic areas will have a cross segmental impact for enhancement of economic competitiveness of CG Sector.

The TAFP Scheme will focus on the prominent sectors identified under Capital Goods sector, as per 12^th Five Year Plan: 

The scheme aims to enable outright Acquisition of Technology focusing especially focusing on few Futuristic & Revolutionary areas:

• Internet of Things (IoT)

Internet revolution has redefined business to-consumer (B2C) industries such as media, retail and financial services during last two decades. Internet of Things revolution will dramatically alter manufacturing, energy, agriculture, transportation and other industrial sectors of the economy. It will also fundamentally transform how people will work through new interactions between humans and machines. Dubbed the Industrial Internet (of Things), this latest wave of technological change will bring unprecedented opportunities, along with new risks, to business and society. It will combine the global reach of the Internet with a new ability to directly control the physical world, including the machines, factories and infrastructure that define the modern landscape.

Various research findings conclude that the Industrial Internet is indeed transformative which over the time may follow the path as depicted in the figure below. It will change the basis of competition, redraw industry boundaries and create a new wave of disruptive companies. However, the vast majority of Indian manufacturing facilities in the Capital Goods sector are still struggling to understand the implications of the Industrial Internet on their businesses and industries. 

• Additive Manufacturing

Additive Manufacturing refers to a process by which digital 3D design data is used to build up a component in layers by depositing material. The term "3D printing" is increasingly used as a synonym for Additive Manufacturing. However, the latter is more accurate in that it describes a professional production technique which is clearly distinguished from conventional methods of material removal. Instead of milling a workpiece from solid block, for example, Additive Manufacturing builds up components layer by layer using materials which are available in fine powder form. A range of different metals, plastics and composite materials may be used.

The technology has especially been applied in conjunction with Rapid Prototyping - the construction of illustrative and functional prototypes. Additive Manufacturing is now being used increasingly in Series Production. It gives Original Equipment Manufacturers (OEMs) in the most varied sectors of industry the opportunity to create a distinctive profile for themselves based on new customer benefits, cost-saving potential and the ability to meet sustainability goals.

• Industrial Energy Efficiency

Drivers for industrial electricity demand are the increased demand for materials in buildings, transportation, capital goods and infrastructure. Advancement in processing machinery for enhancing the energy efficiency and productivity has happened in recent past. Under the compulsions to reduce the carbon footprint, processors in the developed world are replacing the older machines with new technology machines. Thus used machinery from developed world is finding a way to developing world with an attractive price tag. Used machinery population if allowed to increase will render the domestic processing industry inefficient in the long run.

*Any proposals received on the subjects outside the focus areas but otherwise found eligible as per Scheme guidelines on TAFP, would also be considered.

Indian Capital Goods Sector Units or their Consortium/Clusters may avail grant upto 25% of the cost of above defined Technology Acquisition subjected to maximum limit of INR 10 Crores (Ten Crores only) per Technology. Funding will be provided in the following mechanism:

• Initial amount as approved by the Competent Authority after issuance of the Grant Letter & signing of a Legal Contract.
• Remaining amount after acquiring the “Technology” by the applicant within the timeframe and post on-site technical/financial verification. 

Applications will be accepted in two (02) RFP cycles tentatively maintaining the following schedule: 

• Download the Guideline and Application Form from http://gita.org.in/DHI-TAFP.aspx  and complete the same with necessary testimonials.
• Register yourself for Online Application Submission on GITA website.
• A detailed Study/Report to be carried out by a third party specialized consultant/agency, on the proposed Technology covering –
  • Technical Uniqueness
  • Commercial Viability
  • Requisite level of details of Intellectual Property Rights (IPR)
• Submit your complete application by the last date of submission of respective RFP Cycle along with all mandatory documents
• Applicants will be intimated after initial screening of completeness of their application.
• Evaluation of the received proposal by a Panel of Experts (PoE) will be carried out and applicants will be called for multiple rounds of presentation (as appropriate) at their expenses.
• The outcome of the above meetings with PoE will be presented to Screening Committee and Apex Committee on evaluated proposal by the PoE. Results will be communicated to all applicants via email.
• Issuance of the Grant Letter to the successful applicants and Signing of Legal Agreement and release of initial Grant amount.
• After acquisition of proposed Technology on-site technical/financial verification will be carried out by by Financial & Technical Subject Matter Experts and requisite level of documentation (Technical, Financial & IP along with Commissioning Letter with Financial Utilization Certificate signed by the third party CA auditor) needs to be submitted by the applicants.
• Submission of completion report by GITA to DHI and release of remaining funds to the applicant.

A: It is defined as a Customised Technology Solution/Patent/Industrial Design and Equipment/Machines etc for specific application/purpose significantly improving the output/productivity of the business. 

A: No. The technology assimilation/acquisition should only occur after the issuance of Grant Sanction Letter.

A: 'Capital Goods' are defined as any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernisation, technological upgradation or expansion.

A: GITA has a dedicated team to map your technology requirements vis-à-vis suitable Innovative Technologies available across the globe and matching your requirement. Please write to us at tafp@gita.org.in 

A: The TAFP Scheme will Focus on the following three (03) Futuristic & Revolutionary areas to improve Manufacturing & Economics Competitiveness in Indian Capital Goods sector:

The above mentioned three cutting-across sectors are Futuristic and will Revolutionize the Manufacturing & Economics Competitiveness of Indian Capital Goods sectors List of the prominent sub sectors under the 12th Five Year Plan:

A: No. the technology sought must be of higher cadre that will bring greater efficiency and will have to qualify as new technology. However additional or incremental Technology can be procured under this programme to enhance the process.

A: No. The report/study must be carried out by a Third Party specialized & accredited consultant/agency recognized by Govt. of India, on the proposed Technology covering

A: Capital expenditure including on plant and machinery subject to a maximum of INR 10 Crores or 25% of the acquiring cost is eligible for reimbursement. No land or refurbishment cost will be eligible under this funding.

A: For outright purchase of the Technology, it may be sourced upon the receipt of the Grant Sanction Letter from GITA. 

A: Application which has been technically rejected in any cycle for specific Technology, the same Technology will not be entertained in any other cycle. However the same company may apply for other Technology in any cycle.  

A: The processing of Application till to the issuance of Grant Sanction Letter to company by GITA may take approximately 3 months.  

A: A company which is Dormant in nature for last one Financial Year from the date of Application can’t avail the grant.  

A: Any company registered in India is eligible under this scheme.

A: No.

A: No, it is a grant is not a loan.

A: No. Grant is only available in form of reimbursement.

A: No, company must apply directly to GITA. Kindly take note that GITA has never appointed anyone or any company to act on its behalf during application stage. O

A: Only Online applications will be accepted via (http://gita.org.in/DHI-TAFP.aspx), no other mode will be considered 

A: The technology can be sourced from anywhere across the globe including India.

A: The TAFP scheme is devised to provide support to only buyers/technology assimilators. Therefore you may be benefited by selling it to an appropriate Indian MSME.

A: A Company can only apply for one grant at one time from GITA. Company can only apply for another grant after their current project is successfully closed.

A: You may apply through the online process and provide the best available relevant set of documents. We will further put up your case of Panel of Experts (PoE) for furtherance.