Total Pageviews

Tuesday, March 01, 2011

Sponsored research made more attractive with increase in weighted deduction to 200 percent- does that matter?

The current budget proposed enhancement of weighted deduction on payments made to National and Institutes of technology for Scientific research to 200% from 175%. Will that induce industry to sponsor more R&D on labs and IITs?  Taking CSIR case, Sponsored Research from Industry is clubbed with other government projects and shown as ECF (External Cash Flows). In 1996 vision document, a target of 7 billion rupees by 2001 was taken. And by 2003-4, ECF raised to Rs 2.55 billion.
As per CAG report 2007  `to generate ECF, a modernization plan of Rs 250 crores was approved in IXth plan, Rs 263 crores were actually spent but instead of generating a net positive incremental ECF of Rs 361 crores, that year under review resulted in negative incremental ECF of Rs 15 crores.
Any industry insights why/ why not sponsor R&D projects on CSIR or IITs? 

No comments: