Industrial R&D Promotion Programme: Recognition Of In-House R&D Units
Category: Science, IT & Communications, Business & Entrepreneurship
Level: Central | State: All
Ministry: Ministry Of Science And Technology

Details:
The Department of Scientific &amp; Industrial Research (DSIR) is operating a scheme called &quot;Recognition of In-House R&amp;D Units&quot; with the objective of granting recognition &amp; registration to in-house R&amp;D units established by the corporate industry. The In-house R&amp;D units are expected to be engaged in innovative research &amp; development activities related to the line of business of the firm, such as the development of new technologies, design &amp; engineering, process/product/design improvements, development new methods of analysis &amp; testing; research for increased efficiency in the use of resources, such as capital equipment, materials &amp; energy; pollution control, effluent treatment &amp; recycling of waste products or any other areas of research. This is the only scheme in the entire government set-up for benchmarking industrial R&amp;D.
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DSIR is the nodal department for granting recognition to in-house R&amp;D units established by corporate companies, Scientific and Industrial Research Organizations (SIROs) and registration to publicly funded research Institutions like universities, IITs, IISc, and Regional Engineering College (RECs) other than hospitals.

Benefits:
The Government of India has announced a number of fiscal incentives for research and development by industry from time to time and many of these incentives are implemented through DSIR. The In-house R&D units recognised by DSIR are not only eligible for these incentives (wherever applicable) but also for receiving funds for R&D from other government departments and agencies such as DST, DBT, Deity, MoEF, MNRE, MoFPI, CSIR, ICMR, ICAR, TDB where recognition to the in-house R&D centre by DSIR is a requirement.

Eligibility Criteria:
> **For Corporate Industries**


1. The applicant should be a company registered under the Companies Act, 1956 or 2013.
1. The company shall be eligible for consideration only after the completion of three financial years after formation.
1. The applicant should have a regular source of income for at least the last two years to sustain the business and this needs to be elaborated in the application.
1. The companies seeking recognition for their in-house R&D units should be engaged in manufacturing or production or in rendering technical services.
1. Companies fully engaged in contract research are also eligible for consideration provided independent infrastructure is available for research activities. Those engaged in research only at present but have plans to start manufacture at a later date may also be considered for the recognition, if there is a potential.
1. The R&D unit(s) should not be located in residential areas but should be operating on-premises authorized by the relevant Central/State Government. (Proof for such authorization needs to be furnished).
1. Independent infrastructure for research activities and adequate technically qualified manpower should be available (Minimum area for the R&D activities should be at least 1000 sq. ft.).
1. At the time of application, the R&D unit(s) should be functional and should have well-defined, time-bound R&D programmes leading to the development of innovative products and/or technology(ies). > **For Biotech Start-Ups**


1. The applicant should be a Biotech start-up company conducting high-end research with a scope for generating IPs and revenues out of it.
1. The start-up should have qualified R&D manpower and a basic minimum R&D infrastructure.
1. The Company should have focused research objectives based on innovative and recent advanced technologies, a clear business model and sources of funds for sustainability.
1. The Company should furnish documents/details of collaborations, agreements, MOUs etc. with the Incubator Centre or Technology Parks.
1. The Company should furnish a list of Biotechnology-based project proposals submitted/approved for Government of India funding. > **Other Criteria for Recognition**


1. The company must spell out a long-term R&D policy which should be displayed prominently in the in-house R&D unit(s).
1. R&D activities should be separate from routine activities of the firm, such as, production and quality control. The units should have separate & identifiable infrastructure for carrying out R&D work.
1. It is preferable that the in-house R&D unit(s) be located outside the factory premises, or it may be located in a separate building within the factory premises or it may be located on a separate floor. In the case of small companies, the R&D unit may be located in a separate room or area. The R&D activities should be clearly demarcated from the manufacturing/quality control activities.
1. The R&D units should have well-defined, time-bound R&D programmes. The unit should maintain a proper record of its R&D activities in the form of documentation.
1. The units should have qualified staff exclusively engaged in R&D and should be headed by a full-time qualified & experienced R&D person who has direct access to the Chief Executive or to the Board of Directors, depending on the size of the company. The number of R&D manpower should be commensurate with the S&T manpower size of the company. The R&D units should maintain separate books of accounts for all the R&D expenditures.
1. Expenditure should be booked when incurred and not allocated. The company should reflect the R&D expenditure (both capital & revenue) in the Annual Report and Statement of Accounts of the company in separate schedules. The R&D expenditure incurred should be commensurate with the financial size of the company.