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AddressCSR Policy for Donations to Technology Business Incubators
The Corporate Social Responsibility (CSR) framework in India, as per Section 135 of the Companies Act, 2013, allows corporates to donate funds to technology business incubators (TBIs). This initiative aligns with the goal of promoting entrepreneurship, innovation, and research & development under Schedule VII of the Act.
Eligibility Criteria for Corporates Donating CSR Funds
Corporates must meet the following conditions to be eligible for CSR contributions:
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Applicability:
Companies with any of the following in the preceding financial year:- Net worth of ₹500 crore or more
- Turnover of ₹1,000 crore or more
- Net profit of ₹5 crore or more
- CSR Expenditure: Must allocate at least 2% of their average net profits (last 3 years) for CSR activities.
- Approved Projects: Donations to TBIs must align with Schedule VII, which includes support for innovation, research, startups, and skill development.
- Mode of Contribution: Corporates can contribute directly or through their CSR foundations, industry associations, or approved public–private partnerships.
Eligibility Criteria for Incubators Receiving CSR Funds
Technology Business Incubators must meet the following requirements:
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Recognition: Must be registered as a Not-for-Profit entity under one of the following:
- Section 8 Company under the Companies Act, 2013
- A Trust or Society registered under relevant laws
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Affiliation: Should be hosted by one of the following:
- Government-approved institutions (e.g., IITs, IIMs, NITs, universities)
- Public research organizations or government-supported incubation centers
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Approval & Compliance:
- Must be recognized by the Department of Science & Technology (DST), Atal Innovation Mission (AIM), or relevant government agencies
- Should be registered with MCA’s CSR-1 Form to receive CSR funds
- Utilization of Funds: Funds must be used for incubation programs, infrastructure, seed funding, R&D, and startup support.
CSR-Funded Activities at Bhau Institute
Bhau Institute, as a government-supported incubator, can utilize CSR funds for various innovation-driven and impact-oriented activities, such as:
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Startup Incubation & Acceleration Programs
- Supporting early-stage startups with mentorship, market access, and financial aid
- Sector-specific incubation for deep tech, cleantech, agritech, and healthcare startups
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Skill Development & Entrepreneurship Training
- Workshops, hackathons, and training sessions on business development, product innovation, and technology commercialization
- Capacity-building programs for women entrepreneurs and rural innovators
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R&D and Prototyping Support
- Establishing state-of-the-art labs, testing facilities, and maker spaces
- Providing financial grants for prototype development and commercialization
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Seed Funding & Grant Programs
- Offering equity-free funding to high-potential startups
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Industry-Entrepreneurship Collaboration
- Organizing joint research projects with corporates and incubated innovators
- Running corporate innovation challenges to solve industry problems using startup solutions
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Sustainability & Social Innovation Initiatives
- Supporting impact-driven startups in waste management, clean energy, rural development, and financial inclusion
- Encouraging women-led enterprises through CSR-backed programs
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Infrastructure Development
- Expanding incubator facilities, including co-working spaces, IoT labs, AI/ML research centers, and electric mobility innovation hubs
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Community Engagement & Outreach
- Hosting innovation summits, demo days, and networking events for entrepreneurs, investors, and policymakers
- Running educational programs for college students on STEM and entrepreneurship
With CSR support, Bhau Institute can scale its impact by nurturing startups, fostering innovation, and driving socio-economic transformation.
Schedule VII Amendment:
In Schedule VII for the item no. ix.:
ix. contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government.
The following item and entries shall be substituted namely:
(ix) Contribution to incubators funded by Central Government or State Government or any agency or Public Sector Undertaking of Central Government or State Government, and contributions to public funded Universities, Indian Institute of Technology (IITs), National Laboratories and Autonomous Bodies (established under the auspices of Indian Council of Agricultural Research (ICAR), Indian Council of Medical Research (ICMR), Council of Scientific and Industrial Research (CSIR), Department of Atomic Energy (DAE), Defence Research and Development Organisation (DRDO), Department of Science and Technology (DST), Ministry of Electronics and Information Technology) engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs).
- Inserted by Notification Dated 19th November 2019.
- Inserted by Notification Dated 26th May 2020.
- Inserted by Notification Dated 23rd June 2020.
- Substituted by Notification Dated 24th August 2020.
In Schedule VII for the item no. ix.:
(ix) Contribution to incubators funded by Central Government or State Government or any agency or Public Sector Undertaking of Central Government or State Government, and contributions to public funded Universities, Indian Institute of Technology (IITs), National Laboratories and Autonomous Bodies (established under the auspices of Indian Council of Agricultural Research (ICAR), Indian Council of Medical Research (ICMR), Council of Scientific and Industrial Research (CSIR), Department of Atomic Energy (DAE), Defence Research and Development Organisation (DRDO), Department of Biotechnology (DBT), Department of Science and Technology (DST), Ministry of Electronics and Information Technology) engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs).
The following item and entries shall be substituted namely:
(ix) (a) Contribution to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and
(b) Contributions to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defence Research and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs).