Watch full video: CII wants govt to extend R&D funds to pvt firms, accept intellectual property as loan collateral

Watch full video: CII wants govt to extend R&D funds to pvt firms, accept intellectual property as loan collateral

To encourage industry-academia and industry-government R&D, which may be IPR-driven, CII advocated to the finance ministry that private enterprises be included in the scope of government funding.
30 December 2022, 01:12 IST, YUTHIKA BHARGAVA

Offices for the Ministry of Finance are located in New Delhi’s North Block (R) | Representational image | ANI
Offices for the Ministry of Finance are located in New Delhi’s North Block (R) | Representational image | ANI
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In New Delhi: India Inc. has suggested legislative changes to recognize IP (intellectual property) as acceptable collateral for bank loans, as well as bringing private enterprises into the scope of government funding in a “limited manner” to aid in the growth of the research and development (R&D) sector in the nation.

“Today, technology is the foundation of all economic activity. And technology would need to be a fundamental pillar in this journey if India is to become a developed nation by its 100th year of independence in 2047, the Confederation of Indian Industry (CII) stated in a presentation to the Ministry of Finance ahead of the Union Budget 2023–24.

A joint advisory council made up of representatives from the business community and the Department of Science and Technology has been suggested by the industry body to the government (DST). The plan states that this advisory council should act as a forum for industry and government to debate raising national investment in R&D from its current level of 0.7% of GDP to 4% of GDP by 2047, with an intermediate aim of 2.5% by 2030.

It has also been argued that it may be wise to put private enterprises under the auspices of government funding in a limited way in order to “encourage industrial research and development and facilitate industry-academia and industry-government R&D which may be IPR-driven.”

The trade group has pushed for a review of the GFRs, particularly Rule 233, which governs the funding of government-sponsored R&D initiatives.

Rule 233 addresses the sponsorship of projects or schemes by ministries or any other government departments. The GFRs are a collection of rules and instructions of the Government of India must be observed by all when dealing with situations concerning public finances.

This will establish a procedure by which licensing of intellectual property rights (IPR) and technology transfer to industry, based on research results obtained under government-funded projects and/or by various government agencies such as the Indian Council of Medical Research (ICMR), the Defense Research and Development Organization (DRDO), the Council of Scientific and Industrial Research (CSIR), the Indian Council of Agricultural Research (ICAR), the Indian Space Research Organization, etc., are encouraged, facil

It also pushed for the adoption of a proposal from the Budget 2022–2023 that called for opening up defense R&D to business, entrepreneurs, and academics and allocating 25% of the government’s defense R&D budget to them.

The business group has suggested setting up a Task Force to investigate any policy gaps that prevent IP from being accepted as collateral for bank loans. Task Force members would include the Reserve Bank of India (RBI), banks, industry, and chartered accountants.