EUROPEAN COMMISSION Brussels, 30.1.2020 COM(2020) 29 final 2020/0015(NLE) Proposal for a COUNCIL DECISION on the renewal of the Agreement for scientific and technological cooperation between the European Community and the Government of the Republic of India



EXPLANATORY MEMORANDUM 1.CONTEXT OF THE PROPOSAL •Reasons for and objectives of the proposal The 'Agreement for scientific and technological cooperation between the European Community and the Government of the Republic of India' ('the Agreement') was signed in New Delhi on 23 November 2001 and entered into force on 14 October 2002. Article 11(b) provides that 'This Agreement shall be concluded for a period of five years and may be renewed by mutual agreement between the Parties after evaluation during the last year of the aforementioned period'. The Agreement has been renewed twice so far; the Council approved the renewal in 2009 and in 2015 for an additional period of 5 years each time. The current Agreement is due to expire on 17 May 2020. The evaluation carried out by the Commission clearly demonstrates that the Agreement provides an important framework for conducting and facilitating cooperation between the EU and India in common S&T priority areas leading to mutual benefits. In the past years, under the Horizon 2020 Programme, a joint call on water resulted in 7 selected projects for a total of EUR 30M with the Department of Science and Technology (DST) and the Department of Biotechnology (DBT); a joint call on new generation vaccines with DBT for a total of EUR 30M resulted in 3 selected projects; two innovation initiatives were launched: an incubators network and an innovation platform, resulting on more than 20 innovation partnerships among its participants. In addition, an Implementing Arrangement between the Science and Engineering Research Board (SERB) and the European Commission was signed to facilitate mobility of Indian researchers to European Research Council grantees teams. Finally, two co-funding mechanisms were set up by DBT and the Ministry of Earth Science (MoES) to fund succesful Indian participants in more than 50 Horizon 2020 calls. It is in the interest of the EU to renew this Agreement in order to continue to further engage in scientific and technological cooperation and facilitation thereof, in areas of mutual interest and leading to technological advances benefitting European scientific community and increase market access to India through joint cooperation. The Agreement is essential to understand each other's scientific and innovation landscape and establish together priority areas of mutual interest on international cooperation in research and innovation. It offers a legal and administrative framework in which the modalities of cooperation can be discussed ensuring a sound and fair allocation of research and innovation funding in areas that are in line with the EU's interests and policies and can be adapted and adjusted to India's interests and needs. It offers also a useful forum to assess past cooperation and determine future actions, including on topics making the cooperation effective such as Open access and Open Innovation principles. At the India – EU Joint Steering Committee meeting, established by the Agreement, held in New Delhi on 1 March 2019, both Parties took note of their intention to renew the Agreement for another five-year period without any amendment following an evaluation in line with its Article 11. The substance of the renewed Agreement will be identical to that of the current Agreement, as discussed and agreed with the Indian counterparts. It will not create new rights and obligations for the EU, but instead it will extend in time the legal regime already existing between the Parties in the field of S&T cooperation.

•Consistency with existing policy provisions in the policy area This initiative is fully in line with the EU’s international cooperation strategy for R&I. The EU’s strategy clearly states the importance of science & technology agreements as vehicles for defining and implementing multiannual roadmaps for cooperation with non-EU countries. The Agreement is also a means of implementing the EU’s international cooperation strategy for R&I, which calls for more internationalisation and openness in the EU’s R&I landscape. •Consistency with other Union policies The Agreement is instrumental in fulfilling the objectives of the EU Strategy on India to jointly tackling global challenges, supporting India’s sustainable modernisation, opening business opportunities and increasing scientific excellence and competitiveness. 2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY •Legal basis The EU’s power to act internationally in research and technological development is based on Article 186 TFEU. The procedural legal basis for the proposal is point (a)(v) of the second subparagraph of Article 218(6) TFEU. •Subsidiarity (for non-exclusive competence) The EU and its Members States have parallel competence in the area of research and technological development in accordance with Article 4(3) TFEU. The objectives of scientific and technological international cooperation can be better achieved at EU’s level considering the global challenges. Also the Union is best placed to play a leading role in promoting common principles for the conduct of international research and innovation activities in order to create a level playing field in which researchers and innovators from across the globe feel confident to engage with each other. Therefore it’s preferable for the EU to take action in the area of research and technogical development. At the same time the Union's international cooperation activities and those of the Member States need to be consistent and complement each other. In this context, the Agreement allows for a frame to identify areas of cooperation on research and innovation of mutual interest and in line with the EU's agenda and strategy on international cooperation. So far the cooperation between the EU and India has be proved to be useful and necessary and therefore we seek for its continuation via the renewal of the Agreement. 3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS •Regulatory fitness and simplification This initiative is not part of the REFIT agenda. 4.BUDGETARY IMPLICATIONS Only human and administrative resources are required; these are set out in the legislative financial statement. In the light of the above considerations, the Commission requests that the Council: - approves, on behalf of the Union, and with the consent of the European Parliament, the renewal of the 'Agreement for scientific and technological cooperation between the European Community and the Government of the Republic of India', for an additional period of five years (i.e., from 17.05.2020 until 16/05/2025) - authorises the President of the Council to designate the person(s) empowered to notify the Government of the Republic of India that the Union has completed the internal procedures necessary for the entry into force of this renewed Agreement 2020/0015 (NLE)

Proposal for a COUNCIL DECISION on the renewal of the Agreement for scientific and technological cooperation between the European Community and the Government of the Republic of India THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 186, in conjunction with point (v) of Article 218(6)(a) thereof, Having regard to the proposal from the European Commission, Having regard to the consent of the European Parliament, Whereas: (1)By Decision 2002/648/EC, the Council approved the conclusion of the Agreement for scientific and technological cooperation between the European Community and the Government of the Republic of India (‘the Agreement’). The Agreement was signed in New Delhi on 23 November 2001 and entered into force on 14 October 2002. (2)In accordance with point (b) of Article 11 of the Agreement, the Agreement is concluded for a period of five years and may be renewed by mutual agreement between the Parties after evaluation during the last year of the five year period. (3)By Decisions 2009/501/EC, 2015/1788/EU the Council approved the renewal of the Agreement for an additional period of five years each time. The current Agreement is due to expire on 17 May 2020. (4)The evaluation carried out by Commission services demonstrates that the Agreement provides an important framework for facilitating cooperation between the Union and India in common Science & Technology priority areas leading to mutual benefits. It is therefore in the Union’s interest to renew the Agreement for a new period of five years. (5) Both Parties confirmed their intention to renew the Agreement for an additional period of five years without any amendments to the Agreement. (6)The renewal of the Agreement should be approved on behalf of the Union, HAS ADOPTED THIS DECISION: Article 1 The renewal of the Agreement for scientific and technological cooperation between the European Community and the Government of the Republic of India, for an additional period of five years, is hereby approved on behalf of the Union. Article 2 The President of the Council shall designate the person(s) empowered to notify the Government of the Republic of India, on behalf of the Union, that the Union has completed its internal procedures necessary for the renewal of the Agreement in accordance with point (b) of Article 11 of the Agreement.

Article 3 This Decision shall enter into force on the day of its adoption. Done at Brussels, For the Council The President LEGISLATIVE FINANCIAL STATEMENT 1.FRAMEWORK OF THE PROPOSAL/INITIATIVE 1.1.Title of the proposal/initiative 1.2.Policy area(s) concerned in the ABM/ABB structure 1.3.Nature of the proposal/initiative 1.4.Objective(s) 1.5.Grounds for the proposal/initiative 1.6.Duration and financial impact 1.7.Management mode(s) planned 2.MANAGEMENT MEASURES 2.1.Monitoring and reporting rules 2.2.Management and control system 2.3.Measures to prevent fraud and irregularities 3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected 3.2.Estimated impact on expenditure 3.2.1.Summary of estimated impact on expenditure 3.2.2.Estimated impact on operational appropriations 3.2.3.Estimated impact on appropriations of an administrative nature 3.2.4.Compatibility with the current multiannual financial framework 3.2.5.Third-party contributions 3.3.Estimated impact on revenue LEGISLATIVE FINANCIAL STATEMENT 1.FRAMEWORK OF THE PROPOSAL/INITIATIVE 1.1.Title of the proposal/initiative Proposal for a Council Decision on the renewal of the Agreement for scientific and technological cooperation between the European Community and the Government of the Republic of India 1.2.Policy area(s) concerned in the ABM/ABB structure Policy strategy and coordination of, in particular, the Directorates-General RTD, AGRI, CLIMA, JRC, EAC, ENER, GROW, CNECT, MARE and MOVE. 1.3.Nature of the proposal/initiative ◻ The proposal/initiative relates to a new action ◻ The proposal/initiative relates to a new action following a pilot project/preparatory action ☑ The proposal/initiative relates to the extension of an existing action ◻The proposal/initiative relates to an action redirected towards a new action 1.4.Objective(s)

1.4.1.The Commission's multiannual strategic objective(s) targeted by the proposal/initiative The present initiative will allow both Parties to improve and intensify their cooperation in scientific and technological areas of common interest in line with the EU Strategy on India. 1.4.2.Specific objective(s) and ABM/ABB activity(ies) concerned Specific objective No 4.1 It will allow a further exchange of specific knowledge and a transfer of know-how to the benefit of the scientific communities, industry and citizens. A useful forum will continue to be offered to assess past cooperation and determine future actions, including on topics making the cooperation effective such as Open access and Open Innovation principles. ABM/ABB activity(ies) concerned 1.4.3.Expected result(s) and impact Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. This decision will allow both the Union and India to derive mutual benefit from the scientific and technical progress achieved through research cooperation in their respective specific research programmes and facilitate further increased cooperation. It will allow the Union and India to jointly tackle global challenges, and allow the Union to contribute to the sustainable modernisation of India. 1.4.4.Indicators of results and impact Specify the indicators for monitoring implementation of the proposal/initiative. The Commission will regularly monitor all actions carried out under the Agreement, which will include a review by the Union. This review will cover, among others, the following points: (a) cooperation indicators — analysis of the number and type of participation of Indian entities in EU funded programmes (e.g. number of proposals, number of signed grant agreements, main collaboration links, main thematic; generated output) and vice-versa (whenever the data is available); (b) performance indicators — success rate of Indian entities participating in the EU framework programmes compared to other non-EU countries and to Member States/Associated countries to a Research Framework Programme; analysis of the quality of the participation (e.g. number of best ranked universities taking part on the programme, number of patents and publications coming from collaborative projects); (c) data collection regarding cooperation activities and links that go beyond the respective research funding programmes as well as assessment of the impact of these activities, like participation in multilateral initiatives and working groups. 1.5.Grounds for the proposal/initiative 1.5.1.Requirement(s) to be met in the short or long term This decision will allow the two Parties to continue to improve and intensify their cooperation in scientific and technological areas for mutual benefit. 1.5.2.Added value of EU involvement

The Agreement is based on the principles of mutual benefit, reciprocal access to programmes and activities of the other Party, in connection with the subject of the Agreement, non-discrimination, effective protection of intellectual property and equitable sharing of IPR and effective exploitation of results. The renewal of this Agreement will allow for increased scientific knowledge leading to market access opportunities. 1.5.3.Lessons learned from similar experiences in the past Based on the experience so far in scientific and technological cooperation, it is considered mutually beneficial to continue research cooperation with India by renewing the Agreement for a further period of 5 years. 1.5.4.Compatibility and possible synergy with other appropriate instruments The renewal of the Agreement with India is fully coherent with the overall policy framework on international cooperation in research and innovation (COM(2012)497). 1.6.Duration and financial impact ☑ Proposal/initiative of limited duration –☑ Proposal/initiative in effect from 17/05/2020 to 16/05/2025 –☑ Financial impact from 17/05/2020 to 16/05/2025 ◻ Proposal/initiative of unlimited duration –Implementation with a start-up period from YYYY to YYYY, –followed by full-scale operation. 1.7.Management mode(s) planned ☑ Direct management by the Commission –◻ by its departments, including by its staff in the Union delegations; –◻ by the executive agencies ◻ Shared management with the Member States ◻ Indirect management by entrusting budget implementation tasks to: –◻ third countries or the bodies they have designated;

–◻ international organisations and their agencies (to be specified); –◻the EIB and the European Investment Fund; –◻ bodies referred to in Articles 208 and 209 of the Financial Regulation; –◻ public law bodies; –◻ bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees; –◻ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees; –◻ persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act. –If more than one management mode is indicated, please provide details in the ‘Comments’ section. Comments 2.MANAGEMENT MEASURES 2.1.Monitoring and reporting rules Specify frequency and conditions. Participation of legal entities from India in the EU Framework Programme for Research and Innovation and other cooperative activities under the Agreement will be regularly followed through meetings of the Joint Committee established under Art. 6 (b) of the Agreement. 2.2.Management and control system 2.2.1.Risk(s) identified Meetings and bilateral contacts take place on a regular basis allowing for the systematic sharing of information and control. No risks have been identified in the control system. 2.2.2.Information concerning the internal control system set up N/A 2.2.3.Estimate of the costs and benefits of the controls and assessment of the expected level of risk of error

N/A 2.3.Measures to prevent fraud and irregularities Specify existing or envisaged prevention and protection measures. When the implementation of the Framework Programme calls for the use of external contractors or entails granting financial contribution to third parties, the Commission will carry out, where appropriate, financial audits, in particular if it has reason to doubt the realistic nature of work performed or described in the activity reports. The Union’s financial audits will be carried out either by its own staff or by accounting experts approved according to the law of the audited party. The Union will choose the latter freely, while avoiding any risks of conflicts of interest which might be indicated to it by the party subject to the audit. In addition, the Commission will make sure, in carrying out the research activities, that the financial interests of the Union are protected by effective checks and, where irregularities are detected, by deterrent and proportionate measures and penalties. In order to achieve this aim, rules on checks, measures and penalties, with reference to Regulations No 2988/95, No 2185/96 and No 883/2013 will be incorporated in all contracts used in the implementation of the framework programme. In particular, the following points will have to be provided for in the contracts: - the insertion of specific clauses in the contracts to protect the financial interests of the EU in carrying out checks and controls in relation to the work performed; - the carrying out of administrative checks as part of anti-fraud measures, in accordance with Regulations No 2185/96 and No 883/2013; - the application of administrative penalties for all intentional or negligent irregularities in the implementation of the contracts, in accordance with the Framework Regulation No 2988/95, including a blacklisting mechanism; - the fact that any recovery orders in the event of irregularities and fraud must be enforceable according to Article 299 of the Treaty on the Functioning of the European Union. In addition and as a routine measure, a programme of checks on scientific and budgetary aspects of cooperation will be carried out by the staff responsible in the Directorate – General for Research and Innovation (DG RTD). An internal audit will be carried out by the Internal Audit unit of DG RTD, and local inspections will be carried out by the European Court of Auditors. 3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected ·Existing budget lines In order of multiannual financial framework headings and budget lines. Heading of multiannual financial framework Budget line Type of

expenditure Contribution

Heading 1a – Competitiveness for growth and jobs Diff./Non-diff. from EFTA countries from candidate countries from third countries within the meaning of Article 21(2)(b) of the Financial Regulation 1a 08.01.05.01 Non-diff. YES YES NO NO 1a 08.01.05.03 Non-diff. YES YES NO NO ·New budget lines requested In order of multiannual financial framework headings and budget lines.

Heading of multiannual financial framework Budget line Type of

expenditure Contribution Number

[Heading………………………………………] Diff./Non-diff. from EFTA countries from candidate countries from third countries within the meaning of Article 21(2)(b) of the Financial Regulation [XX.YY.YY.YY] YES/NO YES/NO YES/NO YES/NO 3.2.Estimated impact on expenditure 3.2.1.Summary of estimated impact on expenditure EUR million (to three decimal places) Heading of multiannual financial

framework 1a 'Competetiveness for growth and jobs' DG: RTD Year

2020 Year

2021 Year

2022 Year

2023 Year

2024 Year

2025 TOTAL Appropriations of an administrative nature financed from the envelope of specific programmes Number of budget line: 08.01.05.01 Commitments (1) 0.040 0.060 0.060 0.060 0.060 0.020 0.300 Payments (2) 0.040 0.060 0.060 0.060 0.060 0.020 0.300 Number of budget line: 08.01.05.03 (3) 0.008 0.012 0.012 0.012 0.012 0.004 0.060 TOTAL appropriations

for DG RTD Commitments =1+1a +3 0.048 0.072 0.072 0.072 0.072 0.024 0.360 Payments =2+2a +3 0.048 0.072 0.072 0.072 0.072 0.024 0.360





• TOTAL appropriations of an administrative nature financed from the envelope for specific programmes (6) 0.048 0.072 0.072 0.072 0.072 0.024 0.360 TOTAL appropriations

under HEADING <1a>

of the multiannual financial framework Commitments =4+ 6 0.048 0.072 0.072 0.072 0.072 0.024 0.360 Payments =5+ 6 0.048 0.072 0.072 0.072 0.072 0.024 0.360 If more than one heading is affected by the proposal / initiative: • TOTAL operational appropriations Commitments (4) Payments (5) • TOTAL appropriations of an administrative nature financed from the envelope for specific programmes (6) TOTAL appropriations

under HEADINGS 1 to 4

of the multiannual financial framework

(Reference amount) Commitments =4+ 6 Payments =5+ 6







Heading of multiannual financial

framework 5 ‘Administrative expenditure’ EUR million (to three decimal places) Year

2020 Year

2021 Year

2022 Year

2023 Year 2024 Year 2025 TOTAL DG: RTD • Human resources • Other administrative expenditure TOTAL DG RTD Appropriations TOTAL appropriations

under HEADING 5

of the multiannual financial framework (Total commitments = Total payments) EUR million (to three decimal places) Year

2020 Year

2021 Year

2022 Year

2023 Year

2024 Year

2025 TOTAL TOTAL appropriations

under HEADINGS 1 to 5

of the multiannual financial framework Commitments 0.048 0.072 0.072 0.072 0.072 0.024 0.360 Payments 0.048 0.072 0.072 0.072 0.072 0.024 0.360

3.2.2.Estimated impact on operational appropriations –☑ The proposal/initiative does not require the use of operational appropriations Commitment appropriations in EUR million (to three decimal places) Indicate objectives and outputs ⇩ Year

N Year

N+1 Year

N+2 Year

N+3 Enter as many years as necessary to show the duration of the impact (see point 1.6) TOTAL OUTPUTS Type Average cost No Cost No Cost No Cost No Cost No Cost No Cost No Cost Total No Total cost SPECIFIC OBJECTIVE No 1… - Output - Output - Output Subtotal for specific objective No 1 SPECIFIC OBJECTIVE No 2 ... - Output Subtotal for specific objective No 2 TOTAL COST 3.2.3.Estimated impact on appropriations of an administrative nature 3.2.3.1.Summary –◻ The proposal/initiative does not require the use of appropriations of an administrative nature –☑ The proposal/initiative requires the use of appropriations of an administrative nature, as explained below: EUR million (to three decimal places) Year

2020 Year

2021 Year

2022 Year

2023 Year

2024 Year

2025 TOTAL HEADING 5

of the multiannual financial framework Human resources Other administrative expenditure Subtotal HEADING 5

of the multiannual financial framework Outside HEADING 5

of the multiannual financial framework Human resources 0.040 0.060 0.060 0.060 0.060 0.020 0.300 Other expenditure

of an administrative nature 0.008 0.012 0.012 0.012 0.012 0.004 0.060 Subtotal

outside HEADING 5

of the multiannual financial framework 0.048 0.072 0.072 0.072 0.072 0.024 0.360 TOTAL 0.048 0.072 0.072 0.072 0.072 0.024 0.360 The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints. 3.2.3.2.Estimated requirements of human resources

–◻ The proposal/initiative does not require the use of human resources. –☑ The proposal/initiative requires the use of human resources, as explained below: Estimate to be expressed in full time equivalent units Year

2020 Year

2021 Year 2022 Year 2023 Year 2024 Year 2025 • Establishment plan posts (officials and temporary staff) XX 01 01 01 (Headquarters and Commission’s Representation Offices) XX 01 01 02 (Delegations) 08 01 05 01 (Indirect research) 0.3 0.5 0.5 0.5 0.5 0.2 10 01 05 01 (Direct research) • External staff (in Full Time Equivalent unit: FTE) XX 01 02 01 (AC, END, INT from the ‘global envelope’) XX 01 02 02 (AC, AL, END, INT and JED in the delegations) XX 01 04 yy - at Headquarters - in Delegations XX 01 05 02 (AC, END, INT – Indirect research) 10 01 05 02 (AC, END, INT – Direct research) Other budget lines (specify) TOTAL 0.3 0.5 0.5 0.5 0.5 0.2 XX is the policy area or budget title concerned. The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints. Description of tasks to be carried out: Officials and temporary staff Preparation and management of meetings of the Joint Consultative Group established under Art. 6(b) of the Agreement, as well as follow –up of the functioning and implementation of the Agreement. Calculations are done proportionally considering the duration of the Agreement. External staff 3.2.4.Compatibility with the current multiannual financial framework –☑ The proposal/initiative is compatible the current multiannual financial framework. Multiannual Financial Framework 2021-2027 is still to be adopted by the European Parliament and Council. 3.2.5.Third-party contributions –☑ The proposal/initiative does not provide for co-financing by third parties. Appropriations in EUR million (to three decimal places) Year

N Year

N+1 Year

N+2 Year

N+3 Enter as many years as necessary to show the duration of the impact (see point 1.6) Total Specify the co-financing body TOTAL appropriations co-financed



3.3.Estimated impact on revenue –☑ The proposal/initiative has no financial impact on revenue.