Industrial R&D Promotion Programme: Recognition Of In-House R&D Units

The Recognition of In-House R&D Units scheme is a leading initiative by the Department of Scientific & Industrial Research (DSIR), under the Ministry of Science & Technology, Government of India. This scheme formally recognises corporate in-house R&D units that engage in innovative and systematic research activities aligned with their core business. 

DSIR’s role is to assess and grant recognition to these units, enabling them to access various fiscal benefits and funding opportunities. The scheme benchmarks industrial R&D in India and promotes research that strengthens technology development, enhances productivity, and fosters resource efficiency, while facilitating linkages with government-funded scientific programmes. Recognition can also improve credibility for securing MSME loans and startup loans from banks and financial institutions.

The scheme aims to:

• Promote structured and innovative R&D within corporate industries.

• Facilitate access to government fiscal incentives and subsidies.

• Encourage development of new products, processes, and technologies.

• Support increased efficiency in resource usage like capital, energy, and materials.

• Promote environmental sustainability through research in pollution control and waste recycling.

• Extend recognition to high-end biotech startups engaged in secular research.

• Foster collaboration with research institutions and technology parks.

The programme offers:

• Formal recognition acknowledged by government ministries and agencies.

• Inclusive eligibility for manufacturing industries and biotech startups.

• Robust evaluation based on R&D infrastructure, manpower, and documented outcomes.

• Fiscal incentives and benefits for recognised units.

• Access to government grants and funding schemes like DST, DBT, and MoEF.

• Simplified online application and renewal processes.

• No mandatory hard copy submission for application, facilitating digital ease.

• Encouragement for regular reporting on R&D progress.

Recognition by DSIR unlocks multiple benefits including:

• Eligibility for weighted tax deductions on R&D expenditures.

• Qualification for government grants and soft loans targeted at technology development.

• Priority consideration in R&D funding schemes by various ministries.

• Enhanced credibility and reputation within domestic and global markets.

• Access to preferential treatment in scientific procurements and collaborations.

• Facilitation in patent filing and intellectual property protection.

• Incentives that reduce operational costs and encourage sustained innovation.

To qualify, corporate industries must:

• Be a registered company engaged in manufacture, production, or technical services.

• Maintain dedicated, separate spaces for R&D activities distinct from routine operations.

• Have qualified scientific personnel and substantial equipment/infrastructure.

• Conduct time-bound, systematic R&D programmes aligned with business objectives.

• Keep separate books of accounts for R&D expenditure.

• Operate R&D units within permissible zones, with necessary government approvals.

Biotech startups must meet additional conditions such as:

• Be recognised as a startup by the Department of Industrial Policy and Promotion (DIPP).

• Engage in cutting-edge biological or allied research with commercialisation potential.

• Have focused R&D objectives aligned to developing intellectual property.

• Maintain collaborations with incubators, academic institutions, or technology parks.

• Submit approved biotechnology project proposals to government funding agencies.

• Possess minimum required infrastructure and have qualified manpower.

Further recognition requirements include:

• Articulation of a clear, company-wide R&D policy displayed prominently.

• Maintenance of detailed records on ongoing projects, personnel, and outcomes.

• Demonstration of innovation through products, process improvements, or technology patents.

• Annual reporting of R&D activities and expenditure.

• Compliance with environmental and safety norms relevant to the research.

• Physical verification and on-site inspection as part of the approval process.

To apply for the DSIR online application, an entity must follow these steps:

1. Register your company as an in-house R&D unit on the DSIR online portal.

2. Fill in the online application form with company details, R&D activities, and infrastructure data.

3. Upload supporting documents, including KYC, project reports, certificates, and financial records.

4. Submit written undertakings signed by authorised company directors.

5. After online submission, compile the cover letter, signed application, and annexures into a single PDF.

6. Send the PDF application via email to the designated DSIR official.

7. Track application status through the DSIR web portal.

8. Respond to any queries or site inspection requests by DSIR officers.

9. Receive approval letter and certification digitally upon successful evaluation.

Applicants need to submit:

• Registration certificate of the company.

• Detailed R&D activity note and policy document.

• List and qualifications of R&D staff.

• Layout showing R&D unit location relative to production.

• Annual report highlighting R&D expenditure.

• Memorandum and Articles of Association.

• Financial statements showing R&D costs.

• Project proposals and patents (if any).

• KYC proofs of authorised signatories.