THE TECHNOLOGY DEVELOPMENT BOARD ACT, 1995 
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ARRNGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title and commencement. 
2.  Definitions. 

CHAPTER II 

TECHNOLOGY DEVELOPMENT BOARD 

3.  Constitution and incorporation of the Board. 
4.  Secretary and other officers and employees of the Board.  
5.  Committees of the Board. 
6.  Functions of the Board. 

7.  Application for grant of financial assistance, etc. 

APPLICATION FOR GRANT OF FINANCIAL ASSISTANCE 

CHAPTER III 

CHAPTER IV 

FINANCE, ACCOUNTS AND AUDIT 

8.  Grants and loans by the Central Government. 
9.  Fund for Technology Development and Application. 
10.  Transfer of money receipts and liabilities. 
11.  Budget. 
12.  Annual report. 
13.  Accounts and audit. 
14.  Annual report and auditor’s report to be laid before Parliament. 

CHAPTER V 

MISCELLANEOUS 

15.  Returns to be furnished to the Board. 
16.  Power of the Central Government to issue directions. 
17.  Power of Central Government to supersede the Board. 
18.  Delegation. 
19.  Members, officers and employees of the Board to be public servants. 
20.  Protection of action taken in good faith. 
21.  Power of Central Government to make rules. 
22.  Power of Board to make regulations. 
23.  Rules and regulations to be laid before Parliament. 

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THE TECHNOLOGY DEVELOPMENT BOARD ACT, 1995 

ACT NO. 44 OF 1995 

An  Act  to  provide  for  the  constitution  of  a  Board  for  payment  of  equity  capital  or  any  other 
financial  assistance  to  industrial  concerns  and  other  agencies  attempting  development  and 
commercial application of indigenous technology or adapting imported technology to wider 
domestic applications and for matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Forty-sixth Year of the Republic of India as follows:— 

[16thDecember,1995.] 

CHAPTER I 

PRELIMINARY 

1. Short title and commencement.—(1) This Act may be called the Technology Development Board 

Act, 1995. 

(2) It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “Board”  means  the  Technology  Development  Board  constituted  under  sub-section  (1)  of 

section 3; 

(b) “Chairperson” means the Chairperson of the Board; 

(c) “Fund”  means  the  Fund  for  Technology  Development  and  Application  constituted  under            

sub-section (1) of section 9; 

(d) “member” means a member of the Board and includes the Chairperson; 

(e) “prescribed” means prescribed by rules made under this Act; 

(f) “Secretary” means the Secretary of the Board appointed under sub-section (1) of section 4; 

(g) words  and  expressions  used  herein  and  not  defined  but  defined  in  the  Research  and 
Development Cess Act, 1986 (32 of 1986), shall have the meanings respectively assigned to them in 
that Act.  

CHAPTER II 

TECHNOLOGY DEVELOPMENT BOARD 

3. Constitution  and  incorporation  of  the  Board.—(1) The  Central  Government  shall,  by 
notification  in  the  Official  Gazette,  constitute,  for  the  purposes  of  this  Act,  a  Board  to  be  called  the 
Technology Development Board. 

(2) The  Board  shall  be  a  body  corporate  by  the  name  aforesaid  having  perpetual  succession  and  a 
common seal with power, subject to the provisions of this Act, to contract and shall, by the said name, sue 
and be sued. 

(3) The Board shall consist of the following members, namely:— 

(a) the  Secretary  to  the  Government  of  India 
incharge of the Ministry or Department of the Central 
Government dealing with Science and Technology 

ex officio 
Chairperson; 

1. 1st November, 1996,vide notification No. S.O. 602(E), dated 29th August, 1996, see Gazette of India, Extraordinary, Part II, 

sec. 3(ii). 

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(b) the  Secretary  to  the  Government  of  India 
incharge of the Ministry or Department of the Central 
Government  dealing  with  Scientific  and  Industrial 
Research 

ex officio; 

(c) the  Secretary  to  the  Government  of  India 
incharge of the Ministry or Department of the Central 
Government dealing with Finance (Expenditure) 

ex officio; 

(d) the  Secretary  to  the  Government  of  India 
incharge of the Ministry or Department of the Central 
Government  dealing  with  Defence  Research  and 
Development 

ex officio; 

(e) the  Secretary  to  the  Government  of  India 
incharge of the Ministry or Department of the Central 
Government dealing with Industrial Development  

ex officio; 

(f) the  Secretary  to  the  Government  of  India 
incharge of the Ministry or Department of the Central 
Government dealing with Rural Development 

ex officio; 

(g) such number of persons, not exceeding four as 
may  be  prescribed,  to  be  appointed  by  the  Central 
Government from amongst persons having experience 
in  technology  development  and  application,  banking 
and 
rural 
development; and 

agriculture 

industry, 

finance, 

and 

(h) Secretary of the Board. 

ex officio. 

(4) The  term  of  office  and  other  conditions  of  service  of  members  specified  in  clause  (g)  of                

sub-section (3) shall be such as may be prescribed. 

(5) The  Chairperson  shall,  in  addition  to  presiding  over  the  meetings  of  the  Board,  exercise  and 
discharge such powers and duties of the Board as may be delegated to him by the Board and such other 
powers and duties as may be prescribed. 

(6) No act or proceeding of the Board shall be invalidated merely by reason of— 

(a) any vacancy in, or any defect in the constitution of, the Board; 

(b) any defect in the appointment of a person acting as a member of the Board; 

(c) any irregularity in the procedure of the Board not affecting the merits of the case. 

4. Secretary  and  other  officers  and  employees  of  the  Board.—(1) The  Board  may  appoint  the 
Secretary and such other officers and employees as it considers necessary for the efficient discharge of its 
functions under this Act. 

(2) The  terms  and  conditions  of  service  of  the  Secretary  and  other  officers  and  employees  of  the 

Board shall be such as may be determined by regulations. 

5. Committees of the Board.—(1) Subject to the rules made in this behalf, the Board may appoint 
such  committees  as  may  be  necessary  for  the  efficient  discharge  of  its  duties  and  performance  of  its 
functions under this Act. 

(2) The  Board  shall  have  the  power  to  co-opt  as  members  of  any  committee  appointed  under  sub-
section (1), such number of persons who are not members of the Board as it may think fit, and the person 

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so co-opted shall have the right to attend the meetings of the committee, and take part in the proceedings 
of the committee, but shall not have the right to vote. 

6. Functions of the Board.—The Board may— 

(a) provide equity capital, subject to such conditions as may be determind by regulations, or any 
other financial assistance to industrial concerns and other agencies attempting commercial application 
of indigenous technology or adapting imported technology to wider domestic applications; 

(b) provide  financial  assistance  to  such  research  and  development  institutions  engaged  in 
developing indigenous technology or adaptation of imported technology for commercial application, 
as may be recognised by the Central Government; 

(c) perform such other functions as may be entrusted to it by the Central Government. 

CHAPTER III 

APPLICATION FOR GRANT OF FINANCIAL ASSISTANCE 

7. Application  for  grant  of  financial  assistance,  etc.—(1) An  application  for  grant  of  financial 
assistance for the purposes mentioned under section 6 shall be made to the Board in such form as may be 
prescribed. 

(2) The  Board  may,  after  examining  the  application  and  after  making  such  enquiries  as  it  deems 

necessary by order in writing, either grant the financial assistance or refuse to grant the same: 

Provided  that  no  refusal  of  grant  shall  be  made  unless  an  opportunity  is  given  to  the  applicant  of 

being heard.  

CHAPTER IV 

FINANCE, ACCOUNTS AND AUDIT 

8. Grants  and  loans  by  the  Central  Government.—The  Central  Government  may,  after  due 
appropriation made by Parliament by law, in this behalf, make to the Board grants and loans of such sums 
of money as that Government may consider necessary. 

9. Fund for Technology Development and Application.—(1) There shall be constituted a Fund to 
be  called  the  Fund  for  Technology  Development  and  Application  and  there  shall  be  credited  to  the 
Fund— 

(a) any grants and loans made to the Board by the Central Government under section 8; 

(b) all sums received by the Board from any other source; 

(c) recoveries made of the amounts granted from the Fund; and 

(d) any income from investment of the amount of the Fund. 

(2) The Fund shall be applied for meeting— 

(a) expenses on the objects and for the purposes authorised by this Act; 

(b) salaries, allowances and other expenses of officers and other employees of the Board; and 

(c) expenses of the Board in the discharge of its functions under this Act. 

10. Transfer of money receipts and liabilities.—On and from the commencement of this Act,— 

(a) the moneys standing at the credit of the Venture Capital Fund formed under section 5 of the 
Research and Development Cess Act, 1986 (32 of 1986) which is part of the Development Assistance 
Fund established by the Development Bank under section 14 of the Industrial Development Bank  of 
India Act, 1964 (18 of 1964) shall stand transferred to and vest in the Board; 

(b) all  sums  of  money  due  to  the  Development  Bank  immediately  before  such  commencement 

shall be deemed to be due to the Board; 

(c) all debts, obligations and liabilities incurred, all contracts or agreements entered into and all 
matters  and  things  engaged  to  be  done  by,  with  or  for  the  Development  Bank  immediately  before 

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such  commencement  for  or  in  connection  with  the  purpose  of  the  Venture  Capital  Fundshall  be 
deemed to have been incurred, entered into or engaged to be done by, with or for the Board; and 

(d) all  suits  and  other  legal  proceedings  instituted  or  which  could  have  been  instituted  by  or 
against  the  Development  Bank  immediately  before  such  commencement  may  be  continued  or 
instituted by or against the Board. 

11. Budget.—The Board shall prepare, in such form and at such time in each financial year, as may 
be  prescribed,  its  budget  for  the  next  financial  year, showing  the estimated receipts  and  expenditure  of  
the Board and forward the same to the Central Government. 

12. Annual report.—The Board shall prepare, in such form and at such time in each financial year, 
as may be prescribed, its annual report, giving a full account of its activities during the previous financial 
year, and submit a copy thereof to the Central Government. 

13. Accounts and  audit.—(1) The Board shall maintain proper accounts and other relevant records 
and  prepare  an  annual  statement  of  accounts  in  such  form  as  may  be  prescribed  by  the  Central 
Government in consultation with the Comptroller and Auditor-General of India. 

(2) The  Comptroller  and  Auditor-General  of  India  or  any  other  person  appointed  by  him  in 
connection with the auditing of the accounts of the Board under this Act shall have the same rights and 
privileges  and  the  authority  in  connection  with  such  audit  as  the  Comptroller  and  Auditor-General  of 
India has in connection with the auditing of the Government accounts and, in particular, shall have the 
right to demand the production of books, accounts, connected vouchers and other documents and papers 
and to inspect any of the offices of the Board under this Act. 

(3) The  accounts  of  the  Board  shall  be  audited  by  the  Comptroller  and  Auditor-General  of  India 
annually and any expenditure incurred in connection with such audit shall be payable by the Board to the 
Comptroller and Auditor-General of India. 

(4) The  Board  shall  furnish  to  the  Central  Government  before  such  date  as  may  be  prescribed  its 

audited copy of accounts together with auditor’s report. 

14. Annual report and auditor’s report to be laid before Parliament.—The Central Government 
shall cause the annual report and auditor’s report to be laid, as soon as may be after they are received, 
before each House of Parliament.  

CHAPTER V 

MISCELLANEOUS 

15. Returns  to  be  furnished  to  the  Board.—(1) An  industrial  concern  or  an  institution  receiving 
financial assistance from the Board shall furnish returns to the Board in such form and at such time as 
may be determined by regulations. 

(2) The Board may authorise an officer to visit any industrial concern or institution referred to in sub-

section (1) at any time to verify the accuracy of any return made under this section. 

16. Power of the Central Government to issue directions.—(1) Without prejudice to the foregoing 
provisions  of  this  Act,  the  Board  shall,  in  the  discharge  of  its  functions  and  duties  under  this  Act,  be 
bound by such directions on questions of policy as the Central Government may give in writing to it from 
time to time: 

Provided  that  the  Board  shall,  as  far  as  practicable,  be  given  an  opportunity  to  express  its  views 

before any direction is given under this sub-section. 

(2) The decision of the Central Government whether a question is one of  the policy or not shall be 

final. 

17. Power  of  Central  Government  to  supersede  the  Board.—(1) If  at  any  time  the  Central 

Government is of opinion— 

(a) that  on  account  of  grave  emergency,  the  Board  is  unable to discharge  the  functions  and  the 

duties imposed on it by or under the provisions of this Act; or 

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(b) that  the  Board  has  persistently  made  default  in  complying  with  any  direction  issued  by  the 
Central Government under this Act or in the discharge of the functions and duties imposed on it by or 
under the provisions of this Act and as a result of such default the financial position of the Board or 
the administration of the Board has deteriorated; or 

(c) that circumstances exist which render it necessary in the public interest so to do, 

the Central Government may, be notification in the Official Gazette, supersede the Board for such period, 
not exceeding six months, as may be specified in the notification. 

(2) Upon the publication of a notification under sub-section (1) superseding the Board,— 

(a) all the members shall, as from the date of supersession, vacate their offices as such; 

(b) all  the  powers,  functions  and  duties  which  may,  by  or  under  the  provisions  of  this  Act,  be 
exercised or discharged by or on behalf of the Board shall, until the Board is reconstituted under sub-
section (3), be exercised and discharged by such person or persons as the Central Government may 
direct; and 

(c) all  property  owned  or  controlled  by  the  Board  shall,  until  the  Board  is  reconstituted  under        

sub-section (3), vest in the Central Government. 

(3) On  the  expiration  of  the  period  of  supersession  specified  in  the  notification  issued  under  sub-
section (1), the Central Government may reconstitute the Board by a fresh appointment and in such case 
any person or persons who vacated their offices under clause (a) of sub-section (2), shall not be deemed 
to be disqualified for appointment: 

Provided  that  the  Central  Government  may,  at  any  time,  before  the  expiration  of  the  period  of 

supersession, take action under this sub-section. 

(4) The Central Government shall cause a notification issued under sub-section (1) and a full report of 
any action taken under this section and the circumstances leading to such action to be laid before each 
House of Parliament at the earliest. 

18. Delegation.—The Board may, by general or special order in writing, delegate to the Chairperson 
or any other member or to any officer of the Board,subject to such conditions and limitations, if any, as 
may be specified in the order, such of its powers and functions under this Act (except the power under 
section 22) as it may deem necessary. 

19. Members, officers and employees of the Board to be public servants.—All members, officers 
and another employees of the Board shall be deemed, when acting or purporting to act in pursuance of 
any  of  the  provisions  of this  Act,  to  be  public  servants  within  the  meaning  of  section  21  of  the  Indian                    
Penal Code (45 of 1860). 

20. Protection  of  action  taken  in  good  faith.—No  prosecution  or  other  legal  proceeding  shall  lie 
against the Government, or the Board or any committee appointed by it, or any member of the Board or 
such  committee,  or  any  officer  or  employee  of  the  Government  or  the  Board  or  any  other  person 
authorised by the Government or the Board, for anything which is in good faith done or intended to be 
done under this Act or the rules or regulations made thereunder. 

21. Power  of  Central  Government  to  make  rules.—(1) The  Central  Government  may,  by 

notification in the Official Gazette, make rules to carry out the provisions of this Act. 

(2) Without prejudice to the generality of the forgoing power, such rules may provide for all or any of 

the following matters, namely:— 

(a) the number of members of the Board under clause (g) of sub-section (3) of section 3; 

(b) the  term  of  office  and  other  conditions  of  service  of  the  members  of  the  Board  under              

sub-section (4) of section 3; 

(c) the powers and duties of the Chairperson under sub-section (5) of section 3; 

(d) the constitution of committees under sub-section (1) of section 5; 

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(e) theform of application under sub-section (1) of section 7; 

(f) the form in which, and the time at which, the Board shall prepare its budget under section 11 

and its annual report under section 12; 

(g) the  form  of  annual  statement  of  accounts  under  sub-section  (1)  of  section  13  and  the  date 
before  which  the  audited  copy  of  the  accounts  may  be  furnished  to  the  Central  Government  under 
sub-section (4) of that section; 

(h) any other matter which is to be, or may be, prescribed or in respect of which provisions is to 

be, or may be, made by rules. 

22. Power  of Board  to  make  regulations.—(1) The  Board  may,  with the  previous  approval of  the 
Central Government, by notification in the Official Gazette, make regulations consistent with this Act and 
the rules generally to carry out the provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

(a) the terms and conditions of service of the Secretary and other officers and employees of the 

Board under sub-section (2) of section 4; 

(b) the conditions subject to which equity capital may be provided by the Board under clause (a) 

of section 6; 

(c) the  form  in  which  and  the  time  at  which  the  returns  may  be  furnished  to  the  Board  under          

sub-section (1) of section 15. 

23. Rules  and  regulations  to  be  laid  before  Parliament.—Every  rule  and  every  regulation  made 
under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it 
is in session, for a total period of thirty days which may be comprised in one session or in two or more 
successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the 
successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or 
both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter 
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such 
modification or annulment shall be without prejudice to the validity of anything previously done under 
that rule or regulation. 

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