Scheme for strengthening linkages between Universities/ Research institutes and Industry/Enterprise.

1.    Background

           In the alteration memorandum of the Budget for 2015-16, Hon’ble Minister for Finance had announced a new scheme for Fostering linkages between Industry and Research institutions.  

         Government has accorded high priority for promoting technology infusion in industry and start-ups. As universities become more involved in promoting economic development, there is a push on more relevant research and training. One way to address this call for relevance is by encouraging more linkages between higher education / research institutions and the business sector. Such linkages will be beneficial to all stakeholders – encouraging such institutions to foster research, providing design & technology solutions to industry as well as help end users of goods and services, access good quality products and advanced services.

         Extending financial assistance to Universities / Research institutions and technology providers will go a long extent in addressing the need of industry and business enterprises. By focusing research in specific areas where the state stands to gain in terms of technology inputs - such as value addition in food processing, design intervention in traditional sectors etc. – the needs of all stakeholders will be met.

          The scheme envisages providing assistance by way of grant to institutions/agencies involved in developing and harnessing technological innovation to come up with solutions for problems besetting industrial activity as well as for encouraging innovation in the manufacturing sector.

 2.      Objectives

              1.      To create and foster strong and enduring linkages between enterprises within the state and institution having established research facilities and testing laboratories.

             2.      To extend financial assistance to Universities, Research institutions, Common Facility Service Centres and Educational institutes in the State for fostering innovation, providing technology solutions and developing and demonstrating new products, designs and processes.

              3.      For conducting studies/research on specific issues relating to various industry-related sectors in the State .

3.       Key features

             Assistance under the scheme will focus on four key activities:

                    I.            Institutions that undertake research for providing technology solutions to problems faced by industry - whether at the behest of entrepreneurs or by itself - particularly in the areas of improving quality and productivity, enhancing mechanisation, adoption of Non-conventional energy sources as well as mitigating pollution.

 

                II.            Institutions that foster research for developing innovative products from ethnic resources of the state, particularly in the agro sector.

 

             III.            Educational institutions / Research agencies / CFSCs that encourage students to undertake studies/research in developing prototypes and demonstrating “disruptive technologies” and designs in the manufacturing and service sectors (except IT and ITES sector).

 

             IV.            Academic institutions, development institutes, research organisations/agencies involved in conducting studies at the macro-level on sector-specific issues in the State.

 

4.      Pattern of Assistance

             The pattern of assistance for each of the categories above is as follows: 

I

 

60% of the project cost, as certified by the Head of the Institution, subject to a ceiling of Rs.10.00 lakhs in a Financial year

II

 

50% of the project cost, as certified by the Head of the Institution, subject to a ceiling of Rs.5.00 lakhs in a Financial year

III

 

80% of the project cost, as certified by the Head of the Institution, subject to a ceiling of Rs.2.00 lakhs in a Financial year. Preference will be accorded to institutes that have established ED Clubs.

IV

 

100% of the project cost upon the project/assignment being awarded to them by the Department of Industries &Commerce.

The assistance shall not include costs towards procurement of equipment/machinery in the form of capital expenditure.

5.      Eligibility for applicants

 Research institutions / University / Educational institutions / CFSCs owned and controlled by the state government shall be eligible for assistance under the Scheme. The applicant institution has to: 

(a) apply in the prescribed Proforma, along with the detailed project report of the proposed study.

(b) provide necessary documentation and details of the products, processes, services, technologies

(c) execute an agreement with the sanctioning authority to avail the assistance.

 6.      Entitlement of a successful applicant

 

        i.            For research that aims at providing technology solutions to problems faced by industry, entitlement under the scheme shall be limited to an amount of Rs. 20 lakh (Rupees twenty lakhs only) once per annum.

 

      ii.            For research aimed at development innovative products from ethnic resources of the state, the entitlement shall be limited to Rs.10.00 lakhs (Rupees Ten lakhs) once per annum.

 

    iii.            For educational institutions / Research agencies / CFSCs that encourage students to undertake studies/research in developing prototypes and demonstrating “disruptive technologies” and designs in the manufacturing and service sectors, entitlement shall be limited to Rs.10.00 lakhs (Rupees Ten lakhs) per project to be availed by the institute only once per annum.

 

    iv.            Academic institutions, development institutes, research organisations/agencies that have been entrusted by Director of Industries &Commerce to conduct studies at the macro-level on sector-specific issues in the State will be entitled for assistance limited to Rs.5.00 lakhs (Rupees five lakhs) per study.

 

Subject to these maximum ceilings, the assistance shall be limited to the requirement of meeting the expenditure on tools, consumables, raw materials, components/accessories, fabrication costs, procurement of literature/research papers, consultancy charges for external experts, testing charges,  prototype development costs and documentation. Costs towards capital expenditure and recurring costs shall not be eligible.

 

7.      Powers and Services offered by the sanctioning authority

The power to sanction assistances under the scheme shall be vested with the Director of Industries & Commerce subject to approval by a Screening Committee duly constituted for this purpose. The Committee shall have the following composition: -

 

1.      Director of Industries & Commerce - Chairman

2.      CEO of TBIC /  Start-up Village

3.      Expert(s) in the relevant field

4.      Representative from KSCSTE

5.      Representative from CSIR /  NIIST

6.      Joint Director (Technical Consultancy) – Member Secretary

 

The Screening Committee may meet as many times as is deemed necessary by the Director of Industries & Commerce. At the time of approving an application for assistance, the Committee shall also prescribe the benchmarks/milestones to be achieved for release of installments of assistance.

 

8. There shall not be any application fee for entrepreneurs to apply for assistance under this scheme.

 

9. The recommending authority shall request and accept further documentation or clarification required from the applicant, associated agencies or stake holders of other departments.

 

10.       Obligations of the applicant institution

 

a. The applicant shall provide all required details and declare such information as to be true.

 

b. The applicant shall provide clarifications or further details sought by the recommending/ sanctioning authority.

 

c.The applicant shall allow inspection or verification of any details mentioned in the application including tools, equipments and accessories and all other assets if so required by the recommending/sanctioning authority.

 

d.The applicant shall produce originals of any important documents if so required by the recommending/sanctioning authority for verification.

 

e. The applicant shall execute requisite legal agreement on paper as and when the proposal is approved for implementation.

f. The applicant shall utilise the amount received only in the manner agreed upon. He shall also allow periodic inspection of the progress of the project by the sanctioning authority or his authorized representative as and when required.

 

11.       General provisions

a.. The assistance under the scheme shall be released to the eligible institution in installments as decided by the sanctioning authority based on the milestones/benchmarks set out at the time of sanction. Director of Industries & Commerce or his authorized representative shall have full powers to  monitor progress of the project / monitor utilization of funds at any stage and as often as deemed necessary. For this purpose, an official not below the rank of Deputy Director/Manager shall be attached to each beneficiary institution of the assistance under this scheme. The official concerned will monitor the progress of research/study during the project phase and report the same to Director of Industries &Commerce through the concerned General Manager, DIC on a quarterly basis.

 

b.. The Officer while accepting the application form should examine whether all necessary details have been furnished. If any information is found inadequate, the same should be intimated to the applicant institution and grant 10 days time to rectify the defects.

 

c.. The disbursement of the sanctioned assistance to the institution shall be to the bank account of the institution.

 

d.. The Director of Industries & Commerce shall have full powers for sanctioning the assistance as recommended by the District Level Screening Committee. All claims shall be disposed of within 30 days from the date of receipt of completed application.

 

e.. The Director of Industries & Commerce is competent to dispose the appeals, if any, received in the prescribed format against the orders of the General Manager, DIC.

 

12.       Forms

The application, other certificates, agenda note, sanction letters, agreement etc. shown

separately as annexures shall form part of the Manual.

I.                   Format of the Application for assistance

II.                Format of Proceedings to sanction the assistance

III.             Format of the Agreement for assistance

13.       Funds

 

The funds for this scheme will be sourced from the H/A 2851-004-98(P) “strengthening linkages between Universities/ Research institutes and Industry/Enterprise”.

 

Annexure-I                                                                            Annexure-II                                                                      Annexure-III    

                                                                                                           

 

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