Faq

1. What is DIO?

a. Defence Innovation Organisation (DIO) is a Section 8 not-for-profit company established under the aegis of the Department of Defence Production, Ministry of Defence.

b. DIO engages industries, including MSMEs, Startups, Individual Innovators, R&D institutions, and academia, and provides grants/funding and other support to undertake R&D projects with strong potential for future adoption in Indian defence and aerospace.

2. What are the core objectives of DIO?

a. To facilitate co-creation of novel, indigenized, and innovative technologies, and create pathways for incorporation of cutting-edge technologies to be used by Armed Forces, DPSUs and other Nodal Agencies.

b. To transform defence innovation in India with the goal of delivering military-grade products that solve the critical defence needs.

c. To create a culture of innovation in Indian defence & aerospace by engaging innovators through encouraging co-creation & co-development.

3. What is iDEX?

Innovations for Defence Excellence (iDEX) is the operational framework of the DIO. The iDEX framework was launched by the Hon’ble Prime Minister in 2018 to promote innovation in Indian defence and to create pathways for adoption of new technologies by the Armed Forces, DPSUs and other Nodal Agencies, while also nurturing future defence enterprises in the country.

4. What is SPARK?

SPARK (Support for Prototype & Research Kickstart in Defence) is the funding mechanism for Startups/MSMEs/Individual Innovators selected under DISC/ADITI/Open challenge/ Anyother launched by iDEX.

5. What is milestone-based grants?

The milestone wise payment structure is governed by the iDEX Contract (Spark Grant Agreement) signed with the iDEX winner. As per the latest revision of Spark Grant Agreement, the grant release structure is as follows:

Milestone 0 :10% of sanctioned iDEX grant

Milestone 1: 20% of sanctioned iDEX grant

Milestone 2: 20% of sanctioned iDEX grant

Milestone 3: 20% of sanctioned iDEX grant

Milestone 4 :20% of sanctioned iDEX grant

Milestone 5 :10% of sanctioned iDEX grant

6. How does the Open Challenge fundamentally differ from standard DISC problem statements?

In DISC/ADITI, the Problem statements are curated with support of Nodal Agencies through a structured process and are open for application for a specific time window only whereas in case of Open Challenge (OC), Innovators themselves identify critical challenges and submit suo-moto proposals addressing needs of Services, DPSUs, or other Nodal Agencies. The application window of Open Challenge remains open throughout the year.

7. How are the specific problem statements for DISC formulated and selected?

The problem statements are formulated by the Services/Nodal Agencies based on their operational requirements and capability gaps. These requirements are curated through a structured process before being published by DIO for call of applications under DISC/ADITI.

8. What is the specific role of the Nodal Agency (Army, Navy, Air Force, etc.) in an iDEX challenge?

The Nodal agency:

a. Provides/ratifies the PDS (Problem Definition Statement)/ PRU ( Product Requirement Unit)

b. Facilitates technical guidance and access as required

c. Participates in milestone reviews and validation

d. Accepts the final production-ready Product

e. Independently decides on procurement/MPQ, if any

9. How many challenge categories are currently offered by DIO?

Currently DIO offers three challenge categories:

a. DISC: Grant support of up to ₹1.5 crore is provided to DISC winners

b. ADITI: Grant support of up to ₹25 crore is provided to ADITI winners

c. Open Challenge (OC): Grant support of up to ₹1.5 crore is provided to Open Challenge winners

10. What is the High-Powered Selection Committee (HPSC)?

The High-Powered Selection Committee (HPSC) is the apex selection committee comprising senior officials from the Armed Services, Defence Innovation Organisation (DIO), Partner Incubator, Industry, and Academia. It oversees the evaluation and selection of innovators through a rigorous screening and expert assessment process.

11. How is DRISTI different from DISC, and what type of innovations or proposals are appropriate for each?

While both are launched through the platform, DRISTI is completely handled and managed by the respective Defence Public Sector Undertakings (DPSUs). In contrast, the Defence India Startup Challenge (DISC) is managed by iDEX in collaboration with the respective Nodal Agencies from the Armed Forces.

12. How can personnel from the Armed Forces identify and communicate operational problems or capability gaps for which innovative solutions or research may be developed?

iDEX organizes various outreach sessions and defense events that create opportunities for Armed Forces personnel to interact directly with innovators, allowing them to communicate operational gaps and capability requirements.

1. Are international startups or foreign citizens permitted to participate directly in iDEX programs?

Any Startup who wishes to participate in iDEX challenges needs to have majority stake as Indian.

2. Are academic or research institutions eligible to apply for iDEX challenges?

Yes, iDEX does not restrict anyone from applying under iDEX challenges

3. Do I need to have a registered startup entity at the exact time of applying as an individual innovator?

At the time of applying under any iDEX challenge an applicant can be an Individual Innovator, Startup and/or an MSME.

4. Can an MSME apply for iDEX if its historical core business is in the civilian sector, not defence?

Yes, any Individual Innovator, Startup or MSME can apply. iDEX does not place any form of restriction.

5. Is there a maximum revenue or turnover limit for startups to be eligible for iDEX funding?

This is governed as per the eligibility criteria of DPIIT/ MSME.

6. Can a single startup/MSME apply for multiple problem statements within the same DISC edition (or at the same time)?

Yes, a single applicant can apply for multiple Problem Statements within the same DISC/ADITI edition.

7. Are Joint Ventures (JVs) between two companies eligible to apply for iDEX challenges

iDEX does not allow Joint Venture or Consortium of Companies to aplly for iDEX Challenges.

8. Who can apply for Grant-in-Aid?

a. Startups, as defined and recognized by Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India.

b. Any Indian company incorporated under the Companies Act 1956/2013, primarily a Micro, Small and Medium Enterprises (MSMEs) as defined in the MSME Act, 2006.

c. Individual Innovators are also encouraged to apply (research & academic institutions can also use this category).

9. Can a startup pitch a purely software or AI-based solution, or must the prototype involve physical hardware?

Yes, both software and hardware related challenges have been launched under iDEX.

10. What is the minimum TRL required to apply under the iDEX Challenge category?

iDEX has no mandate for a prototype to be of a certain TRL in order to apply under for challenge under iDEX.

1. What is the step-by-step process for innovators to register and submit proposals on the iDEX portal?

In order to submit a proposal under iDEX, following is the process:

a. Login to www.idex.gov.in

b. Login using your credentials or create a new account in case applying for the first time.

c. Identify the Challenge Category and click on Apply Now.

d. Fill the application form and click on Submit.

2. What is the procedure for applying for grant-in-aid under DIO?

A Startup becomes applicable for Grant-in-aid once they are declared as winner under iDEX. The grant-in-aid is released in the form of 6 Milestones.

3. How detailed should the proposal be concise, or more technical detail?

Startup should focus more on the Technical Aspect of the Problem Statement. The Technical Aspect is completely dependent on the Startup/MSME’s understanding of the Problem Statement.

4. We already have some patented solutions is there a specific proposal/presentation format to follow?

There is no specific proposal or presentation format for patented solutions

5. Before submitting a proposal, is there anyone who can review or validate the idea and provide guidance (since it can't be formally evaluated beforehand)?

No, iDEX does not review or validate any proposal. But, applicants may reach out to iDEX in case there is any Technical Glitch or not able to submit a proposal.

6. If we need technical guidance while preparing our proposal, whom should we approach?

Startup/ MSME can contact any of the onboarded 21 Partner Incubator.

7. How can innovators engage with the Services/other government stakeholders to understand operational requirements before applying?

Innovators may reach out to Services/Government Stakeholder During Technical Outreach.

8. We are at the ideation stage, is there a list of incubators that support innovators under iDEX?

Currently there are 21 Partner Incubators associated with iDEX. The details of the Partner Incubators are available on iDEX website.

9. If an application could not be submitted properly due to portal technical issues, is there any provision to correct/resubmit it?

Yes, there is a provision to edit the application after submission, before last date only.

10. If a proposed solution is applicable across multiple Services (Army, Navy, and Air Force), how should the applicant select the appropriate Service/Nodal Agency in the application?

The startup should identify the most appropriate Service or Nodal Agency through various external sources or propose one based on their specific manufacturing and deployment capabilities for the product.

11. Just to clarify regarding the Open Challenge category: is it correct that the participant is responsible for providing both the initial problem statement as well as the proposed solution?

Yes. While problem statements for DISC and ADITI are proposed directly by the Services, the Open Challenge (OC) category requires the startup to formulate both the problem statement and the proposed solution, presenting an innovation that delivers practical utility for the defense services.

1. What's the difference in the assessment process between ADITI, OC, and DISC?

In case of DISC and ADITI, the applications are sent to the Nodal Agencies after the application window is closed. In case of Open Challenge, the applications go through layers of evaluation process before being forwarded to Nodal Agencies.

2. Is assessment done in parallel across categories, or sequentially?

Nodal Agencies assess applications based on their priorities and immediate requirements.

3. How does DIO select startups to support?

DIO does not shortlist Startups/MSMEs are shortlisted by the concerned Nodal Agency. Once an applicant becomes an iDEX winner under any challenge under iDEX, SPARK Grant Agreement is executed.

4. As an applicant, what does the evaluation process look like after submission (what happens after the applicant applies?

After an application is submitted, iDEX does a hygiene check of all the applications and forwards it to the respective Nodal Agencies for evaluation.

5. Is every proposal checked, with feedback given back to the applicant regardless of outcome?

As the no of applications received are in huge numbers, giving feedback to rejected applications can be reworded.

6. If not selected, is any feedback shared to help improve future submissions?

No, there is no feedback mechanism given to a rejected application.

7. During evaluation, is there any opportunity to refine the proposal, or is the outcome simply selected/not selected?

No, once the application window closes changes cannot be made in the application.

8. Can applicants get status updates while under evaluation, and how can they track application status?

Yes, the status of applications can be tracked on the iDEX website. Applicant needs to login to the iDEX website using his credentials and check the status of all the applications submitted under the Dashboard section.

9. What happens if the applicant doesn't get a follow-up call after assessment?

If an applicant is shortlisted for further rounds, an iDEX Official reaches out to the applicant via email and call.

10. Is there a structured follow-up process after submission?

The status of submitted applications are visible under the dashboard on iDEX portal/ website. Applicant may also write an email to iDEX support to know about the status of the application.

11.Is the size of the startup's/team's workforce considered during the selection/evaluation of an iDEX proposal?

Yes, the size and composition of the startup's workforce is one of the factors evaluated by the High-Powered Steering Committee (HPSC).

12. How is the status or outcome of the HPSC stage communicated to an applicant—through the iDEX dashboard, direct communication, or both?

The outcome will be updated directly on the iDEX portal and will also be communicated directly to the applicant by a DIO representative.

13. When the status is updated, is it updated once the HPSC and the winner is selected, or is the status updated once the user is shortlisted?

Status updates are provided across all stages of the evaluation process (including shortlisting and final HPSC selection) via the iDEX portal, with supplemental communication from DIO representatives as needed.

1. Is the funding provided under iDEX a grant or equity-based?

Funding under iDEX is provided as a grant-in-aid (SPARK Grant). DIO does not take any equity or ownership in the startup/ MSME

2. What is the maximum grant amount available under standard DISC and Open Challenges?

Under DISC and Open Challenges, winners can receive grants of up to ₹1.5 crore, subject to approval of the Product Development Budget (PDB).

3. What is the grant ceiling for critical technologies under the ADITI scheme?

Under ADITI, winners can receive grants of up to ₹25 crore, subject to approval of the Product Development Budget (PDB).

4. If a project's budget is more suited to ADITI than an Open Challenge, can it be considered under ADITI instead?

No, a challenge under Open Challenge can receive only upto ₹1.5 crore in grant. It cannot be transitioned to ADITI.

5. If a project needs a significantly higher budget than usual iDEX limits (e.g., ~₹900 million), what's the appropriate route?

In this case Startup may explore the option of Make Category

6. What does "matching contribution" mean, and what percentage is the startup expected to bear?

Matching Contribution (MC) is the startup's share of project cost. It can be in the form of Cash, Past Expenditure, and In-Kind. MC is at least 50% of the Total Project Cost.

7. Is there any restriction on where matching-grant funding can come from does it have to be Indian?

All the terms and regulations with respect to Matching Contribution has been laid out in the SPARK Grant Agreement.

8. If we can't arrange the required matching contribution, does iDEX provide a letter/support to approach investors?

iDEX has an iDEX Investor Hub (iIH), wherein have on boarded Investors. iDEX supports in doing a matchmaking of the Startups and the Investors

9. Can iDEX/SPARK grant funds pay founder/promoter salaries, including accrued (not monthly-drawn) salary under Annexure Y of the SPARK Grant Agreement, and how does this affect minimum cash contribution?

As Current practices ensure that following ceiling limit is under practice: Salary of promoter/founder/core team has been capped at max Rs 2.5 Lakh per month each (with an increase @10% per year), except in exceptional cases for Core Team, for a maximum of two promoters/founders per startup. This overall limit will be in vogue even if the promoters/founders have more than one ongoing project with iDEX. Hence max Rs.62,500/- per month each (with an increase@10% per year) for two promoters at 25% of per month pay will be admissible even if they are undertaking more than one project with iDEX.

10. Are there restrictions on how grant money can be spent? What is the Negative List for Expenditures?

The Product development budget(Spark Grant and Matching contribution) approved for the SPARK Grantee shall not be used for the expenditures mentioned below:

a. Cost overruns - The SPARK Grantee shall bear the additional cost in case of cost overruns.

b. Cost of land and buildings

c. Establishment of new R&D centres

d. Writing of books or reports or collection of statistics or service

e. Investments

f. Interest on loan

g. Bad debts

h. Contributions or donations

i. Fines and penalties

j. Advocacy

k. Losses from other businesses or commercial operations

l. Expenditures/Liabilities by applicant before/after the sanction of the SPARK grant found to be irrelevant in general or not in accordance with the intent of co-creation under the current spark agreement, including its Annexures.

m. Refinancing

n. Entertainment/Alcoholic beverages

o. Any other Capital or Operating expenditures not authorised in PDB or not included in WBS as recommended by PMU.

11. How is Capital Equipment included in the Product Development Budget (PDB)?

Capital Equipment may be purchased as a part of the project. In case already purchased and is in use before the Agreement, it may be included in the PDB based on guidelines set by DIO. Old/New equipment will be included based on its amortized/depreciated costs. [Annexure Y]

12. How is rent treated as part of the PDB?

Use of existing labs is encouraged to ensure efficient use of funds. Actual expenses paid to use such a lab would be part of primary overhead. For any such expenditure to be considered as part of in Kind expense, a formal agreement between the parties is needed. [ Annexure Y]

13. In case of multiple projects from the same startup/firm, can salary be claimed from all projects?

The salary may be claimed preferably from only one project and on pro-rata basis if involved in multiple projects. [Annexure Y].

14. How are payments made when a company imports equipment?

The exchange rate will be of date when actual transaction has taken place and not the date of delivery of product.

15. Can Promoter/Founder-owned IP be treated as an MC In-Kind expense if used for iDEX product development?

Yes IP valuation of product prototype can be considered as In-kind expenditure based on valuation performed by a registered valuer. The consideration of valuation of IP would be decided based on criticality in the project and on a case-to-case basis at the time of negotiation of the agreement for Matching Contribution. The amount admissible as MC for IP may be capped at 20% of total Matching contribution or the amount Rs. 25 Lac whichever is lower.

16. What is reallocation within sub-heads of the product development budget?

Reallocations of resources within a head – e.g. across line-items or sub-heads is allowed subject to fulfilment of percentage limits of Prime cost, Primary Overhead and Secondary Overhead and recommendation from Partner Incubator (PI).

17. What is an iDEX Project Transaction?

SPARK Grantee must do all the expenditure from the exclusive iDEX Bank Account except past expenditure, and no transaction should be in cash more than the limit specified in the applicable laws.

18.I have an idea for an Open Challenge and I would like to submit my application, however I don’t have the matching contribution for the project, and the cost of the project is about 1.5 Cr. How can I proceed?

A Matching Contribution is a mandatory prerequisite for receiving the grant. The SPARK Grantee is required to contribute a minimum of 50% of the Product Development Budget as a Matching Contribution. The grant amount is subject to the applicable cap specified for each challenge.

1. Who retains IP rights for products developed using iDEX funds?

The Intellectual Property remains with the iDEX Winner, subject to the terms of the SPARK Grant Agreement.

2. Can a product developed under SPARK for one Nodal Agency be procured by other Nodal Agencies?

Yes. Subject to user requirements and procurement procedures, other Nodal Agencies may also procure the developed product.

3. Does DIO assure Minimum Pilot Order Quantity procurement?

DIO provides no assurance regarding the MPQ or assured commercial quantities. Placing of Order by Nodal Agency for MPQ is the sole prerogative of Nodal Agency and shall be subject to guidelines as per DAP or any other applicable procedure as may be in force at relevant time.

4. Does DIO provide a "fit for military use" certificate after successful development and deployment?

No. Certification of “fit for military use” status may be issued exclusively by the concerned Nodal Agency (Service).

5. What are the MPO parameters/figures across DISC, OC, iDEX-Prime, and ADITI?

Minimum Pilot Quantity provisions are governed by DAP 2020 and applicable government policies and may vary depending on the scheme, user requirement, and procurement category.

6. What Indigenous Content (IC) is required for the prototype under iDEX Challenges per DAP 2020?

The prototype should meet the Indigenous Content requirements as per DAP.

7. What TRL is expected for the product or solution at the completion of an iDEX project?

The SPARK Grantee must demonstrate Technology Readiness Level (TRL) 8 readiness by Milestone 5 (Delivery of Production Ready Design). At this stage, the Minimum Viable Product (MVP) must be qualified and certified by the Service Headquarters (SHQ) as a production-ready prototype acceptable for defense production and induction.

8. Once an innovator successfully clears the trials, what is the procedure for obtaining the Acceptance of Necessity (AoN) and signing the final procurement contract?

The procurement process is subject to the guidelines of the Defence Acquisition Procedure (DAP).