The TDB support to Ubifly Technologies is being provided through which financial instrument?
- A.An interest-free outright grant
- B.Sovereign green bonds
- C.Optionally Convertible Debentures
- D.A viability gap funding subsidy
Show answer
Correct answer: C. Optionally Convertible Debentures
Explanation
The correct answer is Optionally Convertible Debentures, usually shortened to OCD. The Technology Development Board is routing its support to Ubifly Technologies through this instrument, which is a form of debt that the holder has the option of converting into equity shares of the company after an agreed period. Option A is wrong because the release does not describe the money as a grant; the choice of a convertible instrument is precisely what distinguishes this kind of deep-tech support from a subsidy. Option B is wrong because sovereign green bonds are raised by the government in the market for environment-related spending and have nothing to do with this approval. Option D is wrong because viability gap funding is a support mechanism used mainly in infrastructure projects. The Research Development and Innovation Fund, from which this support comes, is a Rs 1 lakh crore pool aimed at private-sector-led technology development.