By broadening the scope of the mandatory corporate social responsibility (CSR) spending, the government has effectively facilitated the concept of CSR to be turned into corporate innovation responsibility (CIR). The move essentially provides a nudge to companies to spend up to 2 per cent of their profits on supporting research and innovation.
To be sure, companies were allowed to grant money from the CSR kitty to tech-incubators located within academic institutions approved by the Centre. The government has now expanded the scope of spending CSR budget on incubators funded by central or state governments, or any agency or public sector undertaking of central or state governments, and making contributions to public funded universities, IITs, national laboratories and autonomous bodies (established under the auspices of ICAR, ICMR, CSIR, DAE, DRDO, DST, ministry of electronics and information technology) engaged in conducting research in science, technology, engineering and medicine aimed at promoting sustainable development goals. Read More