NEW DELHI: The Department of Telecommunications (DoT) is looking to fund at least six chip design projects this year under the Telecom Technology Development Fund (TTDF). The value of the projects to be funded is around Rs 50-100 crore, officials said.
These chip design projects are separate from those under the India Semiconductor Mission scheme, and are primarily focused on chips for next-generation broadband consumer premise equipment (CPE), 5G modem and radio chip for dongles, chips for Internet of things (IoT) products, satellite communication equipment, and digital signal processors for 5G infrastructure, etc.
Under the TTDF 2.0 scheme where the deadline to submit proposals ended on October 31, 2023, the DoT has received over 200 applications from startups, local companies, and academic institutions to develop technologies for 5G, 6G, backhaul CPE for mobile and satellite communication, telecom network cyber security and routers, among other areas.
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So far, the government has disbursed Rs 300 crore to around 400 companies under the TTDF scheme. The DoT, along with C-DOT, is evaluating another 600 proposals as part of TTDF.
The evaluation is being done on parameters such as technical feasibility of the solutions proposed, market size and impact on the target segment of consumers, potential for import substitution, originality and national importance, go-to-market plan, and team expertise, officials said.
The TTDF was instituted on October 1, 2022 to support rural-specific communication applications as well as promote technology ownership, indigenous manufacturing, and creation of intellectual property for telecom products and solutions.
Disbursements with regard to TTDF are being met through the Digital Bharat Nidhi (formerly known as Universal Service Obligation Fund). The government has earlier earmarked about 5% of the USOF’s yearly expenditure or Rs 500 crore for the TTDF.
However, given the focus on telecom technologies and R&D, disbursements can be to the tune of Rs 3,000-4,000 crore from FY24 onwards, officials said.
As of December 31, 2023, the government’s disbursements from Digital Bharat Nidhi for rural connectivity were at Rs 7,630 crore, more than double of Rs 3,500 crore the government had spent in FY23. The balance in the fund as of December-end stood at Rs 77,113 crore, according to the government data.
In FY25, the spending on rural connectivity via Digital Bharat Nidhi is estimated at Rs 19,000 crore, an increase of 21% from Rs 15,700 crore estimated in FY24.
Applicants under TTDF are offered funding over a period of maximum two years in four instalments based on agreed milestones with the government. In the first instalment, applicants get 15% of the total grant, and the final amount is disbursed only after the completion of the project and submission of the final report with prototype/product.
Source: The Financial Express
