The Technology Development Board Act, 1995
1. Purpose of the Act
The main objective of the Technology Development Board Act, 1995 is to:
Encourage innovation and technology development in India.
Support the commercialization of indigenous technologies developed by Indian scientists and technologists.
Help Indian industries to adapt and commercialize imported technologies suitable for Indian conditions.
2. Establishment of the Technology Development Board (TDB)
Under this Act, the Technology Development Board was established as a statutory body.
Key Points:
It is under the administrative control of the Department of Science and Technology (DST).
It came into existence on 1st September 1996.
It consists of a Chairperson and other members appointed by the Central Government.
3. Main Functions of the TDB
As per Section 6 of the Act, the Technology Development Board has the following functions:
a. Financial Assistance
Provide financial support (like soft loans, equity participation, or grants) to industrial concerns and other agencies to commercialize technologies.
b. Promotion of Technology
Encourage innovation and R&D in new and emerging technologies.
Help industries upgrade their technological capabilities.
c. Collaboration and Partnerships
Foster public-private partnerships.
Promote cooperation between academic institutions, R&D laboratories, and industries.
d. Managing the Fund
Administer the Technology Development Fund, created under the Act, for providing financial support.
4. Technology Development Fund
The Act provides for the creation of a Technology Development Fund, which includes:
Grants and loans from the Central Government.
Returns on investments.
Any other contributions from Indian or foreign sources.
This Fund is utilized by the TDB to finance technological projects and commercialization.
5. Powers of the Board
The Board has powers to:
Enter into contracts.
Invest funds in projects or ventures.
Recover loans or returns on investments.
Monitor and evaluate the progress of the projects it supports.
6. Administration and Audit
The Board must maintain proper accounts, which are audited by the Comptroller and Auditor General of India (CAG).
The Board submits an annual report to the Central Government, which is placed before Parliament.
7. Importance of the Act
This Act helps bridge the gap between research and commercialization, which has been a traditional weakness in the Indian innovation ecosystem. By providing financial and strategic support, the TDB helps Indian innovations reach the market.
Case Law Related to the Act
There are not many landmark Supreme Court cases directly under this Act, but a few legal matters have highlighted the role and authority of the TDB. Some notable judicial mentions include:
Case Example: M/s. ZYX Pharmaceuticals Pvt. Ltd. vs Technology Development Board (TDB)
In this case, the company had received soft loan support from TDB for commercializing a drug formulation.
The company failed to repay as per the agreement.
TDB initiated recovery proceedings.
The court upheld TDB's right to recover dues, as per the terms of agreement, under the powers conferred by the 1995 Act.
General Legal Principle
Courts have recognized that:
The TDB acts in quasi-commercial and public interest roles.
Its financial assistance is not a grant, but often conditional on performance, and subject to repayment obligations or equity returns.
Contracts entered under the Act are legally enforceable.
Conclusion
The Technology Development Board Act, 1995 is a crucial piece of legislation that supports India's journey towards becoming a technology-driven economy. By promoting the conversion of scientific ideas into viable commercial products, the Act strengthens the innovation ecosystem. Through financial incentives and strategic support, the TDB plays a key role in ensuring that Indian technologies do not remain in labs but benefit industries and society at large.
RELATED Blog
0 comments