# How to get a technology from DRDO: the transfer of technology process for Indian companies

URL: https://zernyxhub.com/blog/drdo-transfer-of-technology
Author: Sahil Sheikh, Regd. Patent & Trademark Agent, cRTTP
Published: 2026-10-20
Category: Licensing

> How DRDO transfer of technology works for Indian companies: who is eligible, the step-by-step process, ToT fees, royalty, timelines and free patent access.

**Short answer:** An Indian company gets a DRDO technology by choosing one from the list on DRDO's transfer of technology page, applying to the lab that developed it, passing DRDO's technical assessment and signing a Licensing Agreement for Transfer of Technology (LAToT). Under the DRDO Policy for Transfer of Technology 2025, military technologies cost 5% of the development cost (nil for DRDO's own development and production partners), dual-use technologies cost 20%, and a royalty of 2% applies to non-government sales and exports.

DRDO has developed thousands of technologies, from materials and sensors to software and complete systems, and it licenses many of them to Indian industry. For an MSME or a mid-sized manufacturer, a DRDO licence can mean a proven design, a government customer and years saved on R&D. The process is well defined, but the rules sit in long PDFs. This guide explains them in plain terms.

Everything below is based on the **DRDO Policy for Transfer of Technology 2025** and the matching **DRDO Procedures for Transfer of Technology 2025**, which replaced the 2019 policy. Many websites still describe the old rules, so check the date of anything you read.

## The short version

You pick a technology from the list on DRDO's transfer of technology page, apply to the DRDO lab that developed it, go through a technical assessment of your company, pay the ToT fee and sign a **Licensing Agreement for Transfer of Technology (LAToT)**. The lab then hands over the technology documents and gives limited hands-on support. Licences are **non-exclusive**, so other companies may get the same technology.

## Two categories of technology

DRDO splits its technologies into two groups, and almost every rule depends on which one you want.

- **Category A (MILTECH).** Military technologies. These follow a direct application route: you express interest, DRDO assesses you and offers a licence.
- **Category B.** Dual-use or commercial technologies. These are offered through an expression of interest (EoI) or a bid with separate technical and commercial envelopes.

**DRDO technology categories under the 2025 policy**
Category A (MILTECH):
- Military technologies
- Direct application to the lab
- Fee: 5% of development cost
- Nil fee for DRDO's own partners
Category B (dual-use):
- Dual-use or commercial technologies
- EoI or two-envelope bid
- Fee: 20% of development cost
- Bidding if fewer than 5 firms apply

## Who can apply

The policy is open to Indian industry of any legal form: companies, partnerships, proprietorships and others. The key conditions are:

- **Indian ownership and control.** Resident Indian citizens must own more than 50% and control the company. Foreign investment is capped at 49%.
- **Licences where they apply.** You need an industrial licence from DPIIT where the product requires one, and a PESO licence for high-energy materials.
- **Foreign-owned firms.** Only Category B technologies can go to foreign entities or firms with foreign equity, and that needs approval at the level of the Secretary, Department of Defence R&D and Chairman DRDO.

Micro and small enterprises and startups selected under DRDO's Technology Development Fund, iDEX or deep-tech contests get priority support. The policy does not set a separate MSME registration step.

## The process, step by step

The steps below follow the 2025 procedures document.

### Step 1: Find the technology

DRDO's transfer of technology page lists Category A and Category B technologies that are ready for transfer, with the lab that owns each one, how many licences are available and, for bids, the dates. Read the summary and note the lab. If you are also weighing alternatives from universities and other labs, look at those at the same time, so you can compare readiness and cost before you commit.

### Step 2: Express interest

For Category A, write to the lab or to DRDO's **Directorate of Industry Interface and Technology Management (DIITM)** at DRDO headquarters. For Category B, respond to the EoI or bid notice within the window. DRDO keeps an EoI open for at least 21 days.

### Step 3: Sign the confidentiality papers

Before sharing details, the lab asks you to sign a non-disclosure agreement and, where samples are involved, a material transfer agreement.

### Step 4: Submit the application

You send the **Application cum Industry Assessment Form** with a covering letter to the lab, with a copy to DIITM. It asks about your company, facilities, people, finances and how you plan to produce and sell.

### Step 5: Technical assessment

A **Technical Assessment Committee** checks whether your company can absorb and produce the technology. DRDO's own target is to finish the committee's report within 30 days and inform firms of the result within 7 days after that.

### Step 6: Pay and sign the LAToT

Once selected, you pay the ToT fee online through SBI's e-MRO system. GST applies under reverse charge, so your company pays it directly. The LAToT is signed on ₹500 non-judicial stamp paper, and the Director, DIITM signs it and gives it a licence number. DRDO's target is to generate the LAToT within 3 days, and an offer stays valid for 6 months.

### Step 7: Receive the technology

The lab hands over the Technology Transfer Document within 30 days of signing. When you have set up production, you can apply for a **Technology Absorption Certificate**.

**Getting a DRDO technology, step by step**
1. Find the technology: DRDO's transfer of technology list
2. Express interest: To the lab or DIITM; EoI open 21+ days
3. NDA and MTA: Before any details are shared
4. Apply: Application cum Industry Assessment Form
5. Technical assessment: Committee report targeted in 30 days
6. Pay and sign LAToT: Fee via e-MRO, GST on reverse charge
7. Receive documents: Within 30 days of signing

## What it costs: ToT fee and royalty

This is where most confusion lies. The fee is a percentage of the project's sanctioned cost or actual expenditure, so the lab tells you the exact amount.

**Category A (military):**

- **Nil fee** for DRDO's Development-cum-Production Partners, Production Agencies and Development Partners.
- **5%** of the project cost for everyone else.
- If the fee is above ₹50 lakh, you pay 10% upfront and the rest within 5 years, backed by a bank guarantee (private firms) or an indemnity bond (PSUs).

**Category B (dual-use):**

- **20%** of the same cost base, with no stage payments.
- If fewer than 5 firms show interest, the licence goes to bidding and you pay the higher of the top bid and DRDO's estimate.

**For MSEs and startups:** feeder technologies are offered at 50% of the estimated fee.

**Royalty, on net sales:**

- **Nil** on sales in India to the defence services and government departments, or to development partners, production agencies and system integrators with an end user certificate.
- **2%** on non-government sales in India and on exports.

A simple worked example: if a Category A technology came from a project whose relevant cost was ₹2 crore, a company that is not a DRDO partner would pay a ToT fee of 5%, or ₹10 lakh. If the same company sells the product to a private buyer, it owes 2% of net sales as royalty. Sales to the Army would carry no royalty. The lab confirms the actual cost base, so use this only to estimate.

You may see news reports saying the ToT fee has been "waived". Under the 2025 policy the nil fee applies to DRDO's development and production partners for Category A, not to everyone. Ask the lab what applies to you.

## Licence term, support and exports

- **Term.** An LAToT is generally valid for up to 10 years. Renewal is free for Category A. For Category B, renewal costs the last fee paid.
- **Hand-holding.** The lab gives free support linked to the fee: 15 man-days for fees under ₹50 lakh, 30 man-days from ₹50 lakh to ₹5 crore, and 60 man-days above ₹5 crore.
- **Exports.** Exports need prior Government of India approval and carry the 2% royalty. Making the product abroad needs separate approval from DRDO's leadership and export clearance.

## A cheaper route: using DRDO patents

If you need a patented idea rather than full production know-how, DRDO also lets Indian companies, startups and MSMEs that manufacture or integrate systems use its patents. Under its published procedure there is a processing fee of ₹1,000 per patent and no licence fee or royalty. The licence is non-exclusive, runs for 5 years with a 5-year renewal, is for use in India, and the licensee must report how the patent is worked so that DRDO can meet its Form 27 obligations. Traders are not eligible.

The difference matters. A patent licence gives you the right to use the patented invention. A full ToT gives you the drawings, processes and support needed to actually build the product. If your team cannot reproduce the invention from the patent text, you probably need the ToT. Our guide on [Form 27 working statements](https://zernyxhub.com/blog/form-27-working-statement) explains the reporting side.

## Common mistakes

- **Reading the 2019 policy.** The fee and royalty rules changed in 2025.
- **Assuming exclusivity.** DRDO licences are non-exclusive. Build your business case on the assumption that a competitor may license the same technology.
- **Underestimating absorption.** The documents and 15 to 60 man-days of support do not replace your own engineering team. Plan people and equipment before you sign.
- **Ignoring the end user.** Your royalty depends on who buys. Map your likely customers before you estimate the cost.
- **Skipping due diligence.** Check the patent status, the technology's maturity and what is actually in the transfer document. Our [patent due diligence checklist](https://zernyxhub.com/blog/patent-due-diligence) applies to government labs too.

## Comparing DRDO with other sources

A DRDO technology is one option. The same problem may have a solution at an IIT, a CSIR lab or a university, sometimes with exclusive rights on offer. Zernyx Hub indexes about 6.5 lakh technologies from the last ten years, and its AI gives business insight on each one, including commercial applications, so you can compare a DRDO option with others before you apply. For the general licensing process with universities and labs, read [how to license a technology from an Indian university or lab](https://zernyxhub.com/academy#license-tech).

## FAQ

### How much does a DRDO transfer of technology cost?

Under the 2025 policy, Category A (military) technologies cost 5% of the project cost, or nil for DRDO's development and production partners. Category B (dual-use) technologies cost 20%, or more if they go to bidding. MSEs and startups get feeder technologies at 50% of the estimated fee.

### Is there a royalty on DRDO technologies?

Yes, in some cases. Royalty is nil on sales in India to the defence services and government departments, and 2% of net sales on non-government sales in India and on exports.

### Is a DRDO licence exclusive?

No. DRDO licences are non-exclusive, though DRDO may cap the number of licences for a technology.

### Can a company with foreign investment get DRDO technology?

Foreign investment is capped at 49% for eligibility, and only Category B technologies can go to firms with foreign equity, with approval from DRDO's leadership.

### How long does the DRDO ToT process take?

DRDO publishes targets for individual steps, such as 30 days for the technical assessment report and 30 days to hand over documents after signing, but no official end-to-end timeline. Plan for a few months, depending on the lab and the technology.

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