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DEPARTMENT OF SCIENTIFIC & INDUSTRIAL RESEARCH
Scheme for Granting Recognition & Registration to In-house R&D units
1.
The Department of Scientific & Industrial Research (DSIR) is operating a scheme for
granting recognition & registration to in-house R&D units established by corporate industry.
Companies seeking recognition to their in-house R&D units should be engaged in manufacture or
production or in rendering technical services. Companies engaged in contract research and also those
engaged in research only at present but have plans to start manufacture at a later date are also eligible
for the recognition.
2.
The in-house R&D units applying for recognition to DSIR are expected to be engaged in
innovative research & development activities related to the line of business of the firm, such as,
development of new technologies, design & engineering, process/product/design improvements,
developing new methods of analysis & testing; research for increased efficiency in use of resources,
such as, capital equipment, materials & energy; pollution control, effluent treatment & recycling of
waste products or any other areas of research. 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 development of
innovative products and/or technology(ies). However, market research, work & methods study,
operations & management research, testing & analysis of routine nature for operation, process
control, quality control and maintenance of day to day production, maintenance of plant are not
considered as R&D activities.
3.
Companies desirous of seeking recognition to their in-house R&D units should apply to
DSIR as per the prescribed proforma. The proforma and other details about the scheme are provided
to the interested companies on request. The proforma and details of the scheme are also available at
DSIR website (http://www.dsir.gov.in). The application should be signed by the MD/whole-time
Director of the company. The application should be submitted in 8 sets along with latest Annual
Report, Brief write-up on the past achievements, on-going and future R&D projects/programmes of
the in-house R&D unit. Photographs of some newly developed products or application of the
products/technologies along with caption should be enclosed. In addition, the company may enclose
copies of bio-data of key R&D personnel, major infrastructure available for research, product
brochures/literature, certificates of merit or awards etc., which may help DSIR appreciate the
strengths of the R&D unit. A softcopy of the application along with the corporate presentation & a
presentation on the R&D and a walk-in CD of the R&D unit should also be submitted.

1
4.

Criteria for Recognition:
•

The company must spell out a long term R&D policy which should be displayed
prominently in the in-house R&D unit.

•

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.

•

It is preferable that the in-house R&D unit be located outside the factory premises, or it
may be located in a separate building within the factory premises or it may be located in a
separate floor. In 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.

•

The R&D units should have well defined, time bound R&D programmes. The unit should
maintain proper record of its R&D activities in the form of documentation.

•

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.
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.

5.
During the course of processing the applications, DSIR may hold discussions with the chief of
the R&D unit and executives of the firm, in order to obtain first hand information on R&D activities
of the applicant firms. If needed the units may be visited by a team comprising of representatives of
DSIR along with domain experts. Based on the discussion notes, visit reports, and the Department’s
own evaluation, final decision on recognition & registration would be taken by DSIR.
6.
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. 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, CSIR, ICMR, ICAR, TDB where recognition to the in-house R&D centre by
DSIR is a requirement. This is the only scheme in the entire government set-up for benchmarking the
industrial R&D.

2
7.

Fiscal Incentives and Support Measures

There are number of fiscal incentives and other support measures aimed at promoting R&D in
industry and also at encouraging the utilisation of locally available R&D options for industrial
development. Some of them are as follows:
A.

Incentives based on direct taxes (Income-tax Act, 1961)

•
•

100% write off of revenue expenditure on R&D; (Section 35(1)(i) of IT Act).
100% write off of capital expenditure on R&D in the year the expenditure is incurred;
(Section 35(1)(iv) of IT Act).
Weighted tax deduction @175% (to the sponsor) for payments made to approved national
laboratories, universities and IITs or a specified person, with a specific direction that the said
sum shall be used for scientific research under a programme. (Section 35(2AA) of the IT Act).
Weighted tax deduction @200% on expenditure (other than land & buildings) incurred on
approved in-house R&D facilities of companies engaged in the business of bio-technology or
in any business of manufacture or production of any article or thing, not being an article or
thing specified in the list of the Eleventh Schedule. [Expenditure on scientific research in
relation to drugs and pharmaceuticals, includes expenditure incurred on clinical drug trials,
obtaining approvals from any regulatory authority under any Central, State or Provincial Act
and filing an application for a patent under the Patents Act, 1970 (39 of 1970). (Section
35(2AB) of the IT Act.)]
Accelerated depreciation allowance for investment on plant and machinery, made on the basis
of indigenous technology (Rule 5(2) of IT Rules, 1962).

•
•

•
B.

Incentives based on indirect taxes

i)

Customs duty exemption to in-house R&D units established by corporate companies, other
than a Hospital for capital equipment and consumables needed for R&D. (Notification
No.24/2007-customs, dated 01 March, 2007 as amended from time to time).
Central excise duty exemption to in-house R&D units established by corporate companies,
other than a Hospital for capital equipment and consumables needed for R&D.. (Notification
No.16/2007-central excise, dated 01 March, 2007 as amended from time to time).
Central excise duty waiver for 3 years on goods designed and developed by a wholly owned
Indian company and patented in any two countries out of: India, USA, Japan and any one
country of European Union (Notification No.15/96-CE dated July 23, 1996, amended vide
Notification No.13/99-CE dated 28 February, 1999).
Exemption from customs duty on imports made for R&D projects funded by
Government in industry. (Notification No.50/96-Customs dated 23 July 1996).
Goods specified in List-28 (comprising of analytical and specialty equipment) for use in
pharmaceutical and biotechnology sector allowed to be imported duty free {notification No.
26/2003-Customs dated 1 March 2003 (entry substituted at S. No. 248 of the table in the said
notification)} Subject to conditions mentioned in the notifications.

ii)

iii)

iv)
v)

* * *

3
APPLICATION FOR RECOGNITION / RENEWAL OF RECOGNITION OF IN-HOUSE
R&D UNIT(S)
(Please read instructions carefully before filling the application)
PART-A: CORPORATE
1. Whether application is for:
(a) Fresh recognition
(b) Renewal of recognition
(c) Recognition No. (in case of renewal)
2 Name of the company
3 Brief history of the company
4 Address:
(a) Head office
(b) Delhi office
(c) Factory/factories
(d) R&D laboratory (ies) recognized
(e) R&D laboratory (ies) applied for recognition / renewal of recognition
(f) R&D laboratory (ies) other than (d) and (e)
5. Nature of business
6. Company Structure
(a) Public/Private/Co-operative/Joint Sector/
Proprietary/Partnership concern/100%EOU
(b) Whether Foreign Equity Participation (Please give name of foreign equity participant
and percentage thereof)
(c) Names of Directors of the Board/Proprietors
(d) Name and address of NRI(s), if any

7. Capital structure
(a) Authorised Capital
(b) Paid-up Capital

8. Category of the firm: Large / Medium / Small Scale Unit
9. Administrative Ministry Concerned:

1
10. Technical Collaboration, if any:
(a) Foreign
S.No. Product

(b) Indian
S.No. Product

Name & Address of the Technical
Collaborator

History of
Collaboration

Name & Address of the Technical
Collaborator

History of
Collaboration

(c) Details of R&D collaboration entered with/applied for
11. Annual turnover for the last 3 years (Rupees in Lakhs):

Year

Indigenous

Export

Total

12. Main products manufactured

S.No.

Product

Licensed Capacity,
if any

Installed
Capacity

Yearly Production for the
last 3 Years
1

2

2

3
13. Total manpower employed by the firm including those of R&D:

(a) Scientific & Technical having graduate degree in
engineering/technology or Master’s degree in Science
and above
(b) Administrative (non-technical)
(c) Others
Total (a+b+c)

14. Total R&D expenditure of the company (year-wise figures for the past three years (actuals),
current year (budgeted) and total estimated for the next three years.
Year

Past three years
(Actuals)

Current year
(Budgeted)

Year

Next three year
(Estimated)

PART-B : RESEARCH & DEVELOPMENT
(In case the application is for more than one R&D unit, Part ‘B’ of the application should
be submitted separately for each R&D unit)
1. Location of the R&D unit
2. Is the R&D unit has already been recognised with DSIR? If yes:
a. Year of initial recognition and its validity period
b. Current recognition letter No. and its validity period
c. Break in recognition, if any
3. Changes if any, since the last application for renewal of recognition
Manpower
Floor area
R&D and pilot plant facilities
Any other
4. Present status of the R&D projects reported in earlier application of recognition
5. Date of commencement of R&D work (in case of fresh recognition)

3
6. Main objectives of the R&D program
7. Whether R&D establishment is housed in a separate building inside/outside the factory
premises?
8.

(a) Layout plan of the R&D unit
(b) Approx. floor area of the R&D Unit.
(c) Photographs of the major R&D facilities
(d) Are separate accounts maintained for R&D expenditure?
(e) Are the R&D activities separate from production and quality control?
(f) Details of environmental clearances obtained, if applicable
(g) Details of DCGI approval obtained in case of clinical trials, if applicable

9. List of major R&D equipment procured:
(a) Value of indigenous R&D equipment, as on date
(b) Value of imported R&D equipment, as on date
(c) Value of the pilot plant facilities, if applicable
(d) Cumulative value of all R&D assets, as on date
(e) Gross cumulative value of all quality control and testing facilities/equipment
(other than R&D facilities), as on date.
10. Do you have a full time R&D Director/Head? if so,
(a) Name & Designation
(b) Qualification
(c) Experience
Date of appointment to the post
Contact Nos (Telephone, Mobile, Fax and Email)
11. Details of R&D achievements made during the past 3 years:
(a) New products developed
(b) New processes developed
(c) Improvement in existing production process(s)
(d) Energy conservation
(e) Pollution control
(f) Import substitution (indicate items developed and foreign exchange earned).
(g) Seminars/symposia attended by R&D staff (attach a separate sheet giving details)
(h) Number of papers published (attach reprints if available)
(i) Number of R&D personnel who attended R&D training (Give details in a separate
sheet).
12. Patents filed in India or abroad during the last 3 years:
S.No. Products/Process Names of the Country Year Patent No.
1

2

3

4

4

5
13. Whether any of the new technologies developed by the company have been
(a) commercialised by the company
S.No.
1

Technology
2

Year of commercialisation
3

(b) exported
S. No.

Technology

Year

1

2

Exported to
Party
Country
4
5

3

c) sold to other parties in India/abroad
S. No.
1

Technology
2

Year
3

Party
4

14. Give particulars of R&D projects in progress, as per Annexure - 1
15. R&D project proposed during the next three years, as per Annexure - 2
16. Details of imports effected for R&D purposes as per Annexure – 3
17. R&D expenditure of the unit (year-wise figures for the past three years (actuals), current year
(budgeted) and estimated for the next three years.
Past three years
Year ↓
(Actual)
Capital
Recurring
Total
Capital

Current year
(Budgeted)
Capital

Capital
Recurring
Total
Capital

Recurring

Recurring
Total
Capital
Recurring
Total

Year ↓

Next three years
(Estimated)

Recurring
Total
Total

Capital
Recurring
Total

5
18. Income-tax rebate availed on R&D expenditure under IT Acts / IT Rules, during the past
three years:

Year 35(1) (i) 35(1) (iv) 35(2AB) 80-IB(8A) 35(2AA) Rule 5(2) Any other

19. Details of grants-in-aid / funds / loan / equity received for R&D programmes/
commercialization of technologies from any central / state Govt. department(s) during the
last three years
20. Sales turnover attributable to commercialisation of R&D products/technologies developed
during the last three years.
21. Educational status of the manpower engaged in R&D:

Qualification

Full-time
(Number)

Part-time
(Number)

a) Doctorate Degree

b) Master’s Degree

c) Graduates/
Engineering
Graduates

d) Diploma Holders

e) Others
Total

6

Proposed Recruitment of R&D
manpower in next three years
22. (a) Have you obtained any assistance/purchased know-how from NRDC or any of the
National laboratories/universities/IIT's/other institutions during the last 3 years? If so,
please give details along with year and source.
(b) Whether any of the items of R&D work in progress or proposed by you is being
done elsewhere in country. If so, please indicate location.
23. Do you have necessity of collaborative R&D efforts for projects with CSIR or any other
National Laboratories/institution?
24. Indicate briefly any incentives/benefit derived from the recognition of In-house R&D unit
other than those mentioned in Column 18&19.
I hereby certify to the best of my knowledge and belief that all the particulars furnished
above are correct and complete. I agree to comply with the terms and conditions of
recognition as laid down by the Department of Scientific & Industrial Research, Ministry
of Science and Technology, New Delhi and via lotion of the same may lead to derecognition automatically.

Signature
(To be signed by M.D./Chief Executive
or Head of the organisation)
Name :
Designation :
Full Address :
Tel. Nos. :
Fax No. :
Email Address :
Mobile No :
Place:
Date:

7
Annexure - 1

DETAILS OF R&D PROGRAMMES/PROJECTS IN PROGRESS

Sl.NO

Title & Scope of
the R&D project

Name of the
Project
Leader

Year in
which
stared

Duration
of the
project

Estimated Project Cost
(Rs. in Lakh)

Capital Recurring Total F.E.

8

Remarks
(indicate
specific
reasons, if
any, for
proposing
the R&D
project)
Annexure - 2

DETAILS OF PROPOSED R&D WORK (FOR THE NEXT THREE YEARS)

Year

S.No Title & Scope of
.
the project
proposed

Name of
the project
leader

Duration
of the
Project

Total estimated project cost
(Rs. in Lakh)

Capital

9

Recurring

Total

F.E.

List of
specialised
equipment
required to
be
purchased
and
indicate
their cost

List of
any
special
raw
material
required
with
cost

Remarks
(indicate
specific
reasons, if
any, for
proposing the
R&D
project)
Annexure - 3

DETAILS OF IMPORTS EFFECTED FOR R&D PURPOSES
A. CAPITAL GOODS (LIST)
S. No. Year of Import Description

CIF Value

How utilised

S. No. Year of Import

CIF Value

How utilised

CIF Value

How utilised

B. RAW MATERIALS (LIST)
Description

C. OTHERS (LIST)
S. No.

Year of Import

Description

10
Annexure - 4

Additional information to be submitted by R&D units of seed production
companies:
1. Farm location(s)
2. Type of land (with area of land):
a. Irrigated
b. Non-irrigated
Total
3. Availability of germplasm:
a) Imported
(b) Indigenous

4. Technical arrangement with Agricultural Universities / ICAR Institutions, if any
5. Released notified research varieties/hybrids
6. Annual Turn Over realised from notified research varieties / hybrids
7. Notified research varieties / hybrids With the approval of ICAR
8. Have you obtained approval of DBT to conduct research in the area of
biotechnology? If yes, provide detail of Institutional Bio-Safety Committee
members
9. Details of the Biotechnology work conducted

11
Instructions for filling up the application for recognition / renewal of recognition of
In-house R&D unit(s)
Part ‘A’
1. Indicate yes or no in column No. 1(a) & 1(b). If yes in 1(b) indicate recognition No. in
1(c) otherwise write not applicable.
2. In column No. 2, indicate the name of the company as per registration certificate issued
by the Registrar of the company. Incase of partnership deed firm write name of the
company as per shop / factory registration.
3. For column No. 3, submit brief history of the company (on a separate sheet not
exceeding 250 words).
4. In column No. 4(a) - 4(f) indicate complete postal address with Telephone and Fax Nos;
Mobile No. & Email address of the concerned person.
5. Nature of business should clearly indicate that the area of operation and the type of the
activities being performed by the company.
6. In column No 6(a), indicate whether the company is a Public Sector / Public Ltd / Private
/Co-operative/Joint Sector/ Proprietary/Partnership concern/100%EOU
In column No 6(b), indicate whether company is having any Foreign Equity
Participation, if yes, indicate name of foreign equity participant and percentage thereof.
In column No 6(c), provide list of the Board of Directors. In case of proprietary and
Partnership Company provide the name of the partners with their qualifications.
In column No 6(d) provide name and addresses of the NRIs, if applicable
7. In column No. 7(a) & 7(b) indicate Authorized and Paid-up-Capital of the company
respectively and also attach a copy of the latest Annual report and Statement of
Accounts.
8. In column No. 8 Indicate the category of the firm as per registration whether the
company is large/ Medium/small).
9. In column No. 9, Indicate the name of the administrative Ministry concerned.
10. In column 10(a), provide the details of the foreign technical collaboration (History of
technical collaboration should indicate year(s) of approval(s) including extensions and
the date of expiry of existing technical collaboration agreements)

12
In column 10(b), provide details of the indigenous technical collaboration, if any
(History of technical collaboration should indicate year(s) of approval(s) including
extensions and the date of expiry of existing technical collaboration agreements)
In column 10(c), provide details of R&D collaboration applied / entered in India and
abroad.
11. In column No. 11, indicate Annual Turn Over of the company for past three years,
separately mentioning indigenous and export Turn over.
12. In column No. 12, provide details of the main products manufactured.
13. In column No. 13, provide details of the manpower employed in the company including
those of R&D.
14. In column No. 14, provide details of the Total R&D expenditure of the company for
the last three years – actual, current year- budgeted and estimated for next three years.
Part ‘B’
(In case application is for more than one R&D unit, Part ‘B’ of the
application should be submitted separately for each R&D unit)
1. Indicate Location of the In-house R&D unit.
2. Column No. 2 is applicable in case of renewal of recognition:
In column No. 2(a) indicate year of initial recognition and its validity period
In column No. 2(b) indicate current recognition letter No. and its validity period
In column No. 2(c) indicate details of break in recognition, if applicable
3. The column No. 3 is applicable in case of renewal of recognition:

In column 3(a) indicate increase or decrease is in manpower strength (in number).
In column 3(b) indicate increase and decrease in floor area of the unit (in units).
In column 3(c) indicate addition or deletion of R&D and pilot plant facilities.
In column 3(d) indicate any other changes in R&D setup.
4. The column No. 4 is applicable in case of renewal of recognition
In
this
column
indicate
present
status
of
the
R&D
projects
(ongoing/completed/commercialized)
reported in last renewal application as in
Annexure 1 and 2.
5. In column No. 5 is applicable in case of fresh recognition

In this column indicate date of commencement of the R&D work.

13
6. In column No. 6 indicate the main objectives of the R&D work
7. In column No. 7 indicate whether R&D establishment is housed in a separate building

inside/outside the factory premises?
8. For column 8(a) provide a copy of layout plan of the In-house R&D unit.

In column 8(b) indicate approximately area of the R&D unit
For column 8(c) provide photographs of the major R&D facilities
In column 8(d) write yes or no
In column 8(e) write yes or not
In column 8(f) provide details of the environment clearance obtained, if applicable.
In column 8(g) provide details of the DCGI approval obtained for conducting clinical
trials, if applicable

9. In column 9 indicate present values (Rs. In lakh) of the R&D and quality control

equipment procured:

In column 9(a) indicate present value of indigenous R&D equipment
In column 9(b) indicate present value of imported R&D equipment
In column 9(c) indicate present value pilot facilities, if any
In column 9(d )indicate cumulative value of all R&D assets
In column 9(e) indicate present value gross cumulative value of all quality control and
testing facilities/equipment (other than R&D facilities)
10. In column 10(a) – 10(f) provide details regarding R&D Director/Head
11. In column N0. 11 is related to R&D achievements made by the company during past

three years:
In Column No. 11(a) provide detail of new products developed alongwith
photographs
In column No.11(b) provide detail of the new process developed
In column No.11(c) provide detail of improved existing production process(s)
In column No.11(d) provide detail on energy conservation
In column No.11(e) provide details of pollution control measures undertaken
In column No.11(f) provide details of items developed and foreign exchange earned.
In column No.11(g) attached a separate list of the Seminars and Symposia attended
by the R&D personnel
In column No.11(h) attached a list of the research papers published
In column No.11(i) provide a list of R&D personnel who have attended R&D training
12. In column No 12, provide detail of the patent(s) filled in India and abroad during past

three years.

14
13. In column No. 13(a) indicate detail of the technologies commercialized by the

company during past three years.
In column 13(b) provide list of the technology exported during past three years
In column 13(c) provide the detail of the technology sold to other parties in
India/abroad.
14. For column No. 14 provide detail of R&D projects in progress as per Annexure 1.

Please note that each column of Annexure-1 must be filled.
15. For column No. 15 provide detail of R&D projects proposed for next three years as

per Annexure 2. Please note that each column of Annexure-2 must be filled.
16. For column No 16 provide details of import related with R&D activities as per

Annexure –3.
17. In column No. 17 provide year-wise detail of expenditure (Rs in lakh) during past

three years, budgeted for current year and estimated for next three years with clear
bifurcation of capital and recurring R&D expenditure.
18. In column No. 18 provide year wise details of income tax rebate availed on R&D

expenditure during past three years under different section / rule.
19. In column No. 19 provide details of grants-in-aid / funds / loan / equity received for

R&D programme / commercialization of technologies from any central / state Govt.
department(s) during the last three years.
20. In column No. 20 provide details of Sales turnover attributable to commercialisation

of R&D products/technologies developed during the last three years.
21. In column No. 21 provide educational status of the manpower engaged in R&D. The

details of future recruitment proposed to be indicated.
22. In column No. 22(a) provide details of assistance/purchased know-how received from

NRDC or any of the National laboratories/universities/IIT's/other institutions during
the last 3 years. If it is so provide year-wise detail for the same.
In column No. 22(b) provide detail, if some similar R&D work is in progress
anywhere in the country.
23. In column No. 23 provide detail requirement of the collaborative R&D efforts with
CSIR or any other National Laboratories/institution.
24. In column No. 24 indicate any incentives/benefit derived from the recognition of Inhouse R&D unit other than those mentioned in Column 18 &19.

15
Annexure – 4
(To be submitted only by Seeds Producing Companies)
1. In column write full address of the farm location.
2. In column No 2(a) indicate measurement of the irrigated farm land being used for
R&D.
In column No 2(b) indicate measurement of the non irrigated farm land being used
for R&D

3. In column No. 3(a) indicate source and quantity of available imported germplasm
In column No. 3(b) indicate source availability of available indigenous germplasm
4. In column No. 4 provide details of Technical arrangement with Agricultural
Universities / ICAR Institutions.
5. In column No. 5 provide details of the released notified research varieties/hybrids
6. In column No 6 provide detail of the crop wise Annual Turn Over during the last
year realised from research varieties / hybrids
7. In column No 7 provide details of ICAR research varieties / hybrids
8. In column No 8 provide details of DBT approval obtained and Bio-safety committee
formed, if applicable
9. In column provide details of the Biotechnology work conducted

16
How to Submit
The application for recognition of In-house R&D unit(s) should be submitted in 8 (eight) sets
in case of fresh recognition and 3 (three) sets in case of renewal of recognition. The application
should be submitted in the enclosed proforma, signed by the Managing Director/Director/ CEO of the
company/organisation, to DSIR along with all relevant enclosures, like:
(i)

A CD containing softcopy of application, corporate presentation and presentation covering
R&D unit & its activities

(ii)

Latest annual report of the company,

(iii)

A note on the R&D activities of the R&D unit(s), highlighting the on-going & proposed
research activities, details of past achievements/ completed research projects,

(iv)

A brief write-up on some of the major past achievements, ongoing and future projects,

(v)

Details of scientific personnel working in the R&D unit(s) along with qualifications &
designation

(vi)

Details of infrastructure available for research giving the date of installation & value of all
major facilities,

(vii)

Layout drawing of the R&D unit vis-à-vis the plant/production unit,

(viii) A copy of the memorandum & Articles of Association of the company (in case of newly
formed companies).
The applications for Recognition/Registration should be sent to:
Shri R R Abhyankar
Scientist 'G' and Head (RDI)
Department of Scientific & Industrial Research
Technology Bhawan, New Mehrauli Road
New Delhi-110016

* * *

17

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Incentives and Support scheme for R&D Units in India

  • 1. DEPARTMENT OF SCIENTIFIC & INDUSTRIAL RESEARCH Scheme for Granting Recognition & Registration to In-house R&D units 1. The Department of Scientific & Industrial Research (DSIR) is operating a scheme for granting recognition & registration to in-house R&D units established by corporate industry. Companies seeking recognition to their in-house R&D units should be engaged in manufacture or production or in rendering technical services. Companies engaged in contract research and also those engaged in research only at present but have plans to start manufacture at a later date are also eligible for the recognition. 2. The in-house R&D units applying for recognition to DSIR are expected to be engaged in innovative research & development activities related to the line of business of the firm, such as, development of new technologies, design & engineering, process/product/design improvements, developing new methods of analysis & testing; research for increased efficiency in use of resources, such as, capital equipment, materials & energy; pollution control, effluent treatment & recycling of waste products or any other areas of research. 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 development of innovative products and/or technology(ies). However, market research, work & methods study, operations & management research, testing & analysis of routine nature for operation, process control, quality control and maintenance of day to day production, maintenance of plant are not considered as R&D activities. 3. Companies desirous of seeking recognition to their in-house R&D units should apply to DSIR as per the prescribed proforma. The proforma and other details about the scheme are provided to the interested companies on request. The proforma and details of the scheme are also available at DSIR website (http://www.dsir.gov.in). The application should be signed by the MD/whole-time Director of the company. The application should be submitted in 8 sets along with latest Annual Report, Brief write-up on the past achievements, on-going and future R&D projects/programmes of the in-house R&D unit. Photographs of some newly developed products or application of the products/technologies along with caption should be enclosed. In addition, the company may enclose copies of bio-data of key R&D personnel, major infrastructure available for research, product brochures/literature, certificates of merit or awards etc., which may help DSIR appreciate the strengths of the R&D unit. A softcopy of the application along with the corporate presentation & a presentation on the R&D and a walk-in CD of the R&D unit should also be submitted. 1
  • 2. 4. Criteria for Recognition: • The company must spell out a long term R&D policy which should be displayed prominently in the in-house R&D unit. • 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. • It is preferable that the in-house R&D unit be located outside the factory premises, or it may be located in a separate building within the factory premises or it may be located in a separate floor. In 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. • The R&D units should have well defined, time bound R&D programmes. The unit should maintain proper record of its R&D activities in the form of documentation. • 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. 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. 5. During the course of processing the applications, DSIR may hold discussions with the chief of the R&D unit and executives of the firm, in order to obtain first hand information on R&D activities of the applicant firms. If needed the units may be visited by a team comprising of representatives of DSIR along with domain experts. Based on the discussion notes, visit reports, and the Department’s own evaluation, final decision on recognition & registration would be taken by DSIR. 6. 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. 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, CSIR, ICMR, ICAR, TDB where recognition to the in-house R&D centre by DSIR is a requirement. This is the only scheme in the entire government set-up for benchmarking the industrial R&D. 2
  • 3. 7. Fiscal Incentives and Support Measures There are number of fiscal incentives and other support measures aimed at promoting R&D in industry and also at encouraging the utilisation of locally available R&D options for industrial development. Some of them are as follows: A. Incentives based on direct taxes (Income-tax Act, 1961) • • 100% write off of revenue expenditure on R&D; (Section 35(1)(i) of IT Act). 100% write off of capital expenditure on R&D in the year the expenditure is incurred; (Section 35(1)(iv) of IT Act). Weighted tax deduction @175% (to the sponsor) for payments made to approved national laboratories, universities and IITs or a specified person, with a specific direction that the said sum shall be used for scientific research under a programme. (Section 35(2AA) of the IT Act). Weighted tax deduction @200% on expenditure (other than land & buildings) incurred on approved in-house R&D facilities of companies engaged in the business of bio-technology or in any business of manufacture or production of any article or thing, not being an article or thing specified in the list of the Eleventh Schedule. [Expenditure on scientific research in relation to drugs and pharmaceuticals, includes expenditure incurred on clinical drug trials, obtaining approvals from any regulatory authority under any Central, State or Provincial Act and filing an application for a patent under the Patents Act, 1970 (39 of 1970). (Section 35(2AB) of the IT Act.)] Accelerated depreciation allowance for investment on plant and machinery, made on the basis of indigenous technology (Rule 5(2) of IT Rules, 1962). • • • B. Incentives based on indirect taxes i) Customs duty exemption to in-house R&D units established by corporate companies, other than a Hospital for capital equipment and consumables needed for R&D. (Notification No.24/2007-customs, dated 01 March, 2007 as amended from time to time). Central excise duty exemption to in-house R&D units established by corporate companies, other than a Hospital for capital equipment and consumables needed for R&D.. (Notification No.16/2007-central excise, dated 01 March, 2007 as amended from time to time). Central excise duty waiver for 3 years on goods designed and developed by a wholly owned Indian company and patented in any two countries out of: India, USA, Japan and any one country of European Union (Notification No.15/96-CE dated July 23, 1996, amended vide Notification No.13/99-CE dated 28 February, 1999). Exemption from customs duty on imports made for R&D projects funded by Government in industry. (Notification No.50/96-Customs dated 23 July 1996). Goods specified in List-28 (comprising of analytical and specialty equipment) for use in pharmaceutical and biotechnology sector allowed to be imported duty free {notification No. 26/2003-Customs dated 1 March 2003 (entry substituted at S. No. 248 of the table in the said notification)} Subject to conditions mentioned in the notifications. ii) iii) iv) v) * * * 3
  • 4. APPLICATION FOR RECOGNITION / RENEWAL OF RECOGNITION OF IN-HOUSE R&D UNIT(S) (Please read instructions carefully before filling the application) PART-A: CORPORATE 1. Whether application is for: (a) Fresh recognition (b) Renewal of recognition (c) Recognition No. (in case of renewal) 2 Name of the company 3 Brief history of the company 4 Address: (a) Head office (b) Delhi office (c) Factory/factories (d) R&D laboratory (ies) recognized (e) R&D laboratory (ies) applied for recognition / renewal of recognition (f) R&D laboratory (ies) other than (d) and (e) 5. Nature of business 6. Company Structure (a) Public/Private/Co-operative/Joint Sector/ Proprietary/Partnership concern/100%EOU (b) Whether Foreign Equity Participation (Please give name of foreign equity participant and percentage thereof) (c) Names of Directors of the Board/Proprietors (d) Name and address of NRI(s), if any 7. Capital structure (a) Authorised Capital (b) Paid-up Capital 8. Category of the firm: Large / Medium / Small Scale Unit 9. Administrative Ministry Concerned: 1
  • 5. 10. Technical Collaboration, if any: (a) Foreign S.No. Product (b) Indian S.No. Product Name & Address of the Technical Collaborator History of Collaboration Name & Address of the Technical Collaborator History of Collaboration (c) Details of R&D collaboration entered with/applied for 11. Annual turnover for the last 3 years (Rupees in Lakhs): Year Indigenous Export Total 12. Main products manufactured S.No. Product Licensed Capacity, if any Installed Capacity Yearly Production for the last 3 Years 1 2 2 3
  • 6. 13. Total manpower employed by the firm including those of R&D: (a) Scientific & Technical having graduate degree in engineering/technology or Master’s degree in Science and above (b) Administrative (non-technical) (c) Others Total (a+b+c) 14. Total R&D expenditure of the company (year-wise figures for the past three years (actuals), current year (budgeted) and total estimated for the next three years. Year Past three years (Actuals) Current year (Budgeted) Year Next three year (Estimated) PART-B : RESEARCH & DEVELOPMENT (In case the application is for more than one R&D unit, Part ‘B’ of the application should be submitted separately for each R&D unit) 1. Location of the R&D unit 2. Is the R&D unit has already been recognised with DSIR? If yes: a. Year of initial recognition and its validity period b. Current recognition letter No. and its validity period c. Break in recognition, if any 3. Changes if any, since the last application for renewal of recognition Manpower Floor area R&D and pilot plant facilities Any other 4. Present status of the R&D projects reported in earlier application of recognition 5. Date of commencement of R&D work (in case of fresh recognition) 3
  • 7. 6. Main objectives of the R&D program 7. Whether R&D establishment is housed in a separate building inside/outside the factory premises? 8. (a) Layout plan of the R&D unit (b) Approx. floor area of the R&D Unit. (c) Photographs of the major R&D facilities (d) Are separate accounts maintained for R&D expenditure? (e) Are the R&D activities separate from production and quality control? (f) Details of environmental clearances obtained, if applicable (g) Details of DCGI approval obtained in case of clinical trials, if applicable 9. List of major R&D equipment procured: (a) Value of indigenous R&D equipment, as on date (b) Value of imported R&D equipment, as on date (c) Value of the pilot plant facilities, if applicable (d) Cumulative value of all R&D assets, as on date (e) Gross cumulative value of all quality control and testing facilities/equipment (other than R&D facilities), as on date. 10. Do you have a full time R&D Director/Head? if so, (a) Name & Designation (b) Qualification (c) Experience Date of appointment to the post Contact Nos (Telephone, Mobile, Fax and Email) 11. Details of R&D achievements made during the past 3 years: (a) New products developed (b) New processes developed (c) Improvement in existing production process(s) (d) Energy conservation (e) Pollution control (f) Import substitution (indicate items developed and foreign exchange earned). (g) Seminars/symposia attended by R&D staff (attach a separate sheet giving details) (h) Number of papers published (attach reprints if available) (i) Number of R&D personnel who attended R&D training (Give details in a separate sheet). 12. Patents filed in India or abroad during the last 3 years: S.No. Products/Process Names of the Country Year Patent No. 1 2 3 4 4 5
  • 8. 13. Whether any of the new technologies developed by the company have been (a) commercialised by the company S.No. 1 Technology 2 Year of commercialisation 3 (b) exported S. No. Technology Year 1 2 Exported to Party Country 4 5 3 c) sold to other parties in India/abroad S. No. 1 Technology 2 Year 3 Party 4 14. Give particulars of R&D projects in progress, as per Annexure - 1 15. R&D project proposed during the next three years, as per Annexure - 2 16. Details of imports effected for R&D purposes as per Annexure – 3 17. R&D expenditure of the unit (year-wise figures for the past three years (actuals), current year (budgeted) and estimated for the next three years. Past three years Year ↓ (Actual) Capital Recurring Total Capital Current year (Budgeted) Capital Capital Recurring Total Capital Recurring Recurring Total Capital Recurring Total Year ↓ Next three years (Estimated) Recurring Total Total Capital Recurring Total 5
  • 9. 18. Income-tax rebate availed on R&D expenditure under IT Acts / IT Rules, during the past three years: Year 35(1) (i) 35(1) (iv) 35(2AB) 80-IB(8A) 35(2AA) Rule 5(2) Any other 19. Details of grants-in-aid / funds / loan / equity received for R&D programmes/ commercialization of technologies from any central / state Govt. department(s) during the last three years 20. Sales turnover attributable to commercialisation of R&D products/technologies developed during the last three years. 21. Educational status of the manpower engaged in R&D: Qualification Full-time (Number) Part-time (Number) a) Doctorate Degree b) Master’s Degree c) Graduates/ Engineering Graduates d) Diploma Holders e) Others Total 6 Proposed Recruitment of R&D manpower in next three years
  • 10. 22. (a) Have you obtained any assistance/purchased know-how from NRDC or any of the National laboratories/universities/IIT's/other institutions during the last 3 years? If so, please give details along with year and source. (b) Whether any of the items of R&D work in progress or proposed by you is being done elsewhere in country. If so, please indicate location. 23. Do you have necessity of collaborative R&D efforts for projects with CSIR or any other National Laboratories/institution? 24. Indicate briefly any incentives/benefit derived from the recognition of In-house R&D unit other than those mentioned in Column 18&19. I hereby certify to the best of my knowledge and belief that all the particulars furnished above are correct and complete. I agree to comply with the terms and conditions of recognition as laid down by the Department of Scientific & Industrial Research, Ministry of Science and Technology, New Delhi and via lotion of the same may lead to derecognition automatically. Signature (To be signed by M.D./Chief Executive or Head of the organisation) Name : Designation : Full Address : Tel. Nos. : Fax No. : Email Address : Mobile No : Place: Date: 7
  • 11. Annexure - 1 DETAILS OF R&D PROGRAMMES/PROJECTS IN PROGRESS Sl.NO Title & Scope of the R&D project Name of the Project Leader Year in which stared Duration of the project Estimated Project Cost (Rs. in Lakh) Capital Recurring Total F.E. 8 Remarks (indicate specific reasons, if any, for proposing the R&D project)
  • 12. Annexure - 2 DETAILS OF PROPOSED R&D WORK (FOR THE NEXT THREE YEARS) Year S.No Title & Scope of . the project proposed Name of the project leader Duration of the Project Total estimated project cost (Rs. in Lakh) Capital 9 Recurring Total F.E. List of specialised equipment required to be purchased and indicate their cost List of any special raw material required with cost Remarks (indicate specific reasons, if any, for proposing the R&D project)
  • 13. Annexure - 3 DETAILS OF IMPORTS EFFECTED FOR R&D PURPOSES A. CAPITAL GOODS (LIST) S. No. Year of Import Description CIF Value How utilised S. No. Year of Import CIF Value How utilised CIF Value How utilised B. RAW MATERIALS (LIST) Description C. OTHERS (LIST) S. No. Year of Import Description 10
  • 14. Annexure - 4 Additional information to be submitted by R&D units of seed production companies: 1. Farm location(s) 2. Type of land (with area of land): a. Irrigated b. Non-irrigated Total 3. Availability of germplasm: a) Imported (b) Indigenous 4. Technical arrangement with Agricultural Universities / ICAR Institutions, if any 5. Released notified research varieties/hybrids 6. Annual Turn Over realised from notified research varieties / hybrids 7. Notified research varieties / hybrids With the approval of ICAR 8. Have you obtained approval of DBT to conduct research in the area of biotechnology? If yes, provide detail of Institutional Bio-Safety Committee members 9. Details of the Biotechnology work conducted 11
  • 15. Instructions for filling up the application for recognition / renewal of recognition of In-house R&D unit(s) Part ‘A’ 1. Indicate yes or no in column No. 1(a) & 1(b). If yes in 1(b) indicate recognition No. in 1(c) otherwise write not applicable. 2. In column No. 2, indicate the name of the company as per registration certificate issued by the Registrar of the company. Incase of partnership deed firm write name of the company as per shop / factory registration. 3. For column No. 3, submit brief history of the company (on a separate sheet not exceeding 250 words). 4. In column No. 4(a) - 4(f) indicate complete postal address with Telephone and Fax Nos; Mobile No. & Email address of the concerned person. 5. Nature of business should clearly indicate that the area of operation and the type of the activities being performed by the company. 6. In column No 6(a), indicate whether the company is a Public Sector / Public Ltd / Private /Co-operative/Joint Sector/ Proprietary/Partnership concern/100%EOU In column No 6(b), indicate whether company is having any Foreign Equity Participation, if yes, indicate name of foreign equity participant and percentage thereof. In column No 6(c), provide list of the Board of Directors. In case of proprietary and Partnership Company provide the name of the partners with their qualifications. In column No 6(d) provide name and addresses of the NRIs, if applicable 7. In column No. 7(a) & 7(b) indicate Authorized and Paid-up-Capital of the company respectively and also attach a copy of the latest Annual report and Statement of Accounts. 8. In column No. 8 Indicate the category of the firm as per registration whether the company is large/ Medium/small). 9. In column No. 9, Indicate the name of the administrative Ministry concerned. 10. In column 10(a), provide the details of the foreign technical collaboration (History of technical collaboration should indicate year(s) of approval(s) including extensions and the date of expiry of existing technical collaboration agreements) 12
  • 16. In column 10(b), provide details of the indigenous technical collaboration, if any (History of technical collaboration should indicate year(s) of approval(s) including extensions and the date of expiry of existing technical collaboration agreements) In column 10(c), provide details of R&D collaboration applied / entered in India and abroad. 11. In column No. 11, indicate Annual Turn Over of the company for past three years, separately mentioning indigenous and export Turn over. 12. In column No. 12, provide details of the main products manufactured. 13. In column No. 13, provide details of the manpower employed in the company including those of R&D. 14. In column No. 14, provide details of the Total R&D expenditure of the company for the last three years – actual, current year- budgeted and estimated for next three years. Part ‘B’ (In case application is for more than one R&D unit, Part ‘B’ of the application should be submitted separately for each R&D unit) 1. Indicate Location of the In-house R&D unit. 2. Column No. 2 is applicable in case of renewal of recognition: In column No. 2(a) indicate year of initial recognition and its validity period In column No. 2(b) indicate current recognition letter No. and its validity period In column No. 2(c) indicate details of break in recognition, if applicable 3. The column No. 3 is applicable in case of renewal of recognition: In column 3(a) indicate increase or decrease is in manpower strength (in number). In column 3(b) indicate increase and decrease in floor area of the unit (in units). In column 3(c) indicate addition or deletion of R&D and pilot plant facilities. In column 3(d) indicate any other changes in R&D setup. 4. The column No. 4 is applicable in case of renewal of recognition In this column indicate present status of the R&D projects (ongoing/completed/commercialized) reported in last renewal application as in Annexure 1 and 2. 5. In column No. 5 is applicable in case of fresh recognition In this column indicate date of commencement of the R&D work. 13
  • 17. 6. In column No. 6 indicate the main objectives of the R&D work 7. In column No. 7 indicate whether R&D establishment is housed in a separate building inside/outside the factory premises? 8. For column 8(a) provide a copy of layout plan of the In-house R&D unit. In column 8(b) indicate approximately area of the R&D unit For column 8(c) provide photographs of the major R&D facilities In column 8(d) write yes or no In column 8(e) write yes or not In column 8(f) provide details of the environment clearance obtained, if applicable. In column 8(g) provide details of the DCGI approval obtained for conducting clinical trials, if applicable 9. In column 9 indicate present values (Rs. In lakh) of the R&D and quality control equipment procured: In column 9(a) indicate present value of indigenous R&D equipment In column 9(b) indicate present value of imported R&D equipment In column 9(c) indicate present value pilot facilities, if any In column 9(d )indicate cumulative value of all R&D assets In column 9(e) indicate present value gross cumulative value of all quality control and testing facilities/equipment (other than R&D facilities) 10. In column 10(a) – 10(f) provide details regarding R&D Director/Head 11. In column N0. 11 is related to R&D achievements made by the company during past three years: In Column No. 11(a) provide detail of new products developed alongwith photographs In column No.11(b) provide detail of the new process developed In column No.11(c) provide detail of improved existing production process(s) In column No.11(d) provide detail on energy conservation In column No.11(e) provide details of pollution control measures undertaken In column No.11(f) provide details of items developed and foreign exchange earned. In column No.11(g) attached a separate list of the Seminars and Symposia attended by the R&D personnel In column No.11(h) attached a list of the research papers published In column No.11(i) provide a list of R&D personnel who have attended R&D training 12. In column No 12, provide detail of the patent(s) filled in India and abroad during past three years. 14
  • 18. 13. In column No. 13(a) indicate detail of the technologies commercialized by the company during past three years. In column 13(b) provide list of the technology exported during past three years In column 13(c) provide the detail of the technology sold to other parties in India/abroad. 14. For column No. 14 provide detail of R&D projects in progress as per Annexure 1. Please note that each column of Annexure-1 must be filled. 15. For column No. 15 provide detail of R&D projects proposed for next three years as per Annexure 2. Please note that each column of Annexure-2 must be filled. 16. For column No 16 provide details of import related with R&D activities as per Annexure –3. 17. In column No. 17 provide year-wise detail of expenditure (Rs in lakh) during past three years, budgeted for current year and estimated for next three years with clear bifurcation of capital and recurring R&D expenditure. 18. In column No. 18 provide year wise details of income tax rebate availed on R&D expenditure during past three years under different section / rule. 19. In column No. 19 provide details of grants-in-aid / funds / loan / equity received for R&D programme / commercialization of technologies from any central / state Govt. department(s) during the last three years. 20. In column No. 20 provide details of Sales turnover attributable to commercialisation of R&D products/technologies developed during the last three years. 21. In column No. 21 provide educational status of the manpower engaged in R&D. The details of future recruitment proposed to be indicated. 22. In column No. 22(a) provide details of assistance/purchased know-how received from NRDC or any of the National laboratories/universities/IIT's/other institutions during the last 3 years. If it is so provide year-wise detail for the same. In column No. 22(b) provide detail, if some similar R&D work is in progress anywhere in the country. 23. In column No. 23 provide detail requirement of the collaborative R&D efforts with CSIR or any other National Laboratories/institution. 24. In column No. 24 indicate any incentives/benefit derived from the recognition of Inhouse R&D unit other than those mentioned in Column 18 &19. 15
  • 19. Annexure – 4 (To be submitted only by Seeds Producing Companies) 1. In column write full address of the farm location. 2. In column No 2(a) indicate measurement of the irrigated farm land being used for R&D. In column No 2(b) indicate measurement of the non irrigated farm land being used for R&D 3. In column No. 3(a) indicate source and quantity of available imported germplasm In column No. 3(b) indicate source availability of available indigenous germplasm 4. In column No. 4 provide details of Technical arrangement with Agricultural Universities / ICAR Institutions. 5. In column No. 5 provide details of the released notified research varieties/hybrids 6. In column No 6 provide detail of the crop wise Annual Turn Over during the last year realised from research varieties / hybrids 7. In column No 7 provide details of ICAR research varieties / hybrids 8. In column No 8 provide details of DBT approval obtained and Bio-safety committee formed, if applicable 9. In column provide details of the Biotechnology work conducted 16
  • 20. How to Submit The application for recognition of In-house R&D unit(s) should be submitted in 8 (eight) sets in case of fresh recognition and 3 (three) sets in case of renewal of recognition. The application should be submitted in the enclosed proforma, signed by the Managing Director/Director/ CEO of the company/organisation, to DSIR along with all relevant enclosures, like: (i) A CD containing softcopy of application, corporate presentation and presentation covering R&D unit & its activities (ii) Latest annual report of the company, (iii) A note on the R&D activities of the R&D unit(s), highlighting the on-going & proposed research activities, details of past achievements/ completed research projects, (iv) A brief write-up on some of the major past achievements, ongoing and future projects, (v) Details of scientific personnel working in the R&D unit(s) along with qualifications & designation (vi) Details of infrastructure available for research giving the date of installation & value of all major facilities, (vii) Layout drawing of the R&D unit vis-à-vis the plant/production unit, (viii) A copy of the memorandum & Articles of Association of the company (in case of newly formed companies). The applications for Recognition/Registration should be sent to: Shri R R Abhyankar Scientist 'G' and Head (RDI) Department of Scientific & Industrial Research Technology Bhawan, New Mehrauli Road New Delhi-110016 * * * 17