REPORT NO. 319

PARLIAMENT OF RAJYA SABHA

DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON SCIENCE AND TECHNOLOGY, ENVIRONMENT AND FORESTS

THREE HUNDRED NINETEENTH REPORT Action taken by the Government on the Recommendations/Observations contained in the Three Hundred Eleventh Report of the Department-related Parliamentary Standing Committee on Science and Technology, Environment and Forests on the Demands for Grants (2018-19) of the Department of Scientific and Industrial Research (Presented to the Rajya Sabha on2 nd January, 2018 ) (Laid on the Table of on2 nd January, 2018 )

Rajya Sabha Secretariat, New Delhi January, 2019/Pausa, 1940 (Saka) Website : http://rajyasabha.nic.in E-mail : [email protected] 21

Hindi version of this publication is also available

PARLIAMENT OF INDIA RAJYA SABHA

DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON SCIENCE AND TECHNOLOGY, ENVIRONMENT AND FORESTS

THREE HUNDRED NINETEENTH REPORT

Action taken by the Government on the Recommendations/Observations contained in the Three Hundred Eleventh Report of the Department-related Parliamentary Standing Committee on Science and Technology, Environment and Forests on the Demands for Grants (2018-19) of the Department of Scientific and Industrial Research

(Presented to the Rajya Sabha on 2nd January, 2018) (Laid on the Table of Lok Sabha on 2nd January, 2018)

Rajya Sabha Secretariat, New Delhi January, 2019/Pausa, 1940 (Saka) CONTENTS

PAGES

1. COMPOSITION OF THE COMMITTEE ...... (i)-(ii)

2. INTRODUCTION ...... (iii)

3. ACRONYMS ...... (iv)

4. REPORT ...... 1-14

Chapter I : Recommendations/Observations which have been accepted by the Government...... 2-6

Chapter II : Recommendations/Observations which the committee does not desire to pursue in view of the Government’s replies...... 7-12

Chapter III : Recommendations/Observations in respect of which replies of the Government have not been accepted by the Committee...... 13

Chapter IV : Recommendations/Observations in respect of which final replies of the Government are still awaited...... 14

5. RECOMMENDATIONS/OBSERVATIONS — AT A GLANCE ...... 15

6. MINUTES ...... 17-19 COMPOSITION OF THE COMMITTEE (2018-19) (Constituted on 1st September, 2018)

1. Shri Anand Sharma — Chairman

RAJYA SABHA 2. Shri Prasanna Acharya 3. Shri S.R. Balasubramoniyan 4. Shri Anil Baluni 5. Shri Rajkumar Dhoot 6. Shri Hishey Lachungpa 7. Dr. Raghunath Mohapatra 8. Shri Parimal Nathwani 9. Shri Sharad Pawar 10. Dr. T. Subbarami Reddy

LOK SABHA 11. Maulana 12. Shri Muzaffar Hussain Baig 13. Shri E.T. Mohammed Basheer 14. Shri Prabhatsinh Pratapsinh Chauhan 15. Kumari Sushmita Dev 16. Shri 17. Shri Laxman Giluwa 18. Dr. K. Gopal 19. Shri Sunil Kumar Jakhar 20. Shri Ramesh Chander Kaushik 21. Shrimati Vasanthi M. 22. Shri 23. Shri Chirag Paswan 24. Shri Shivaji Adhalrao Patil 25. Shri Hari Narayan Rajbhar 26. Shrimati Sandhya Roy 27. Shri 28. Shri Vikram Usendi 29. Shri Prabhubhai Nagarbhai Vasava #30. Vacant #31. Vacant

# Shri Raghu Sharma and Shri Nagendra Singh ceased to be members of the Committee consequent upon their resignation from the Lok Sabha w.e.f. 21st December, 2018.

(i) (ii)

SECRETARIAT Shrimati Sunita Sekaran, Joint Secretary Shri T. N. Pandey, Director Shri S. Rangarajan, Additional Director Shri Mohd. Salamuddin, Additional Director Shri Rajiv Saxena, Under Secretary Shri Harish Kumar, Assistant Committee Officer INTRODUCTION

I, the Chairman of the Department-related Parliamentary Standing Committee on Science and Technology, Environment and Forests, having been authorised by the Committee to present the Report on its behalf, present this Three Hundred Nineteenth Report on Action Taken by the Department of Scientific and Industrial Research on the Recommendations/Observations contained in the Three Hundred and Eleventh Report of the Committee on Demands for Grants (2018-19) of the Department of Scientific and Industrial Research, which was presented/laid in both the Houses of Parliament on 13th March, 2018.

2. There were 23 Recommendations/Observations in the Three Hundred Eleventh Report of the Committee. Action Taken Notes on the Recommendations/Observations of the Committee were received from the Department on 20th June, 2018.

3. In the meeting held on 27th December, 2018, the Committee considered the draft Report and adopted the same.

ANAND SHARMA NEW DELHI; Chairman, 27th December, 2018 Department-related Parliamentary Standing Committee on Pausa 6, 1940 (Saka) Science and Technology, Environment and Forests, Rajya Sabha.

(iii) ACRONYMS

ATN : Action Taken Note AT R : Action Taken Report B.E. : Budget Estimate CDC : Consultancy Development Centre CEL : Central Electronics Limited CSIR : Council of Scientific and Industrial Research CSIR-NEERI : CSIR-National Environmental Engineering Research Institute CSIR-NEIST : CSIR-North-East Institute of Science and Technology DBT : Department of Biotechnology DSIR : Department of Scientific and Industrial Research DST : Department of Science and Technology EDP : Engineering Design Package FTC : Fast Track Commercialization FTT : Fast Track Translation GDP : Gross Domestic Product HAL : Hindustan Aeronautics Limited ICMR : Indian Council of Medical Research MHRD : Ministry of Human Resource Development MoU : Memorandum of Understanding MSDE : Ministry of Skill Development and Entrepreneurship MSMEs : Micro, Small and Medium Enterprises NML : National Metallurgical Laboratory NRDC : National Research Development Corporation NSFDC : National Scheduled Caste Finance Development Cooperation PACE : Patent Acquisition and Collaborative Research and Technology Development R&D : Research & Development R.E. : Revised Estimate SDGs : Sustainable Development Goals SIROs : Scientific and Industrial Research Organizations TKDL : Traditional Knowledge Digital Library PFRIs : Public Funded Research Institutions

(iv) REPORT

The Action Taken Report (ATR) of the Committee deals with the action taken by the Department of Scientific and Industrial Research on the Recommendations/Observations contained in Three Hundred Eleventh Report of the Committee on ‘Demands for Grants (2018-2019) of the Department of Scientific and Industrial Research’. The Report was presented to Rajya Sabha and laid on the Table of Lok Sabha on the 13th March, 2018.

2. Action Taken Note (ATN) has been received from Department of Scientific and Industrial Research’ in respect of all the twenty three Recommendations/Observations contained in the Three Hundred Eleventh Report. This has been categorized as follows:-

Chapter I : Recommendations/Observations which have been accepted by the Government: Para: 3.2, 5.7, 7.5, 9.4, 9.7, 9.14, 9.15, 11.3, 12.3, 13.4, 13.6 and 15.5.

(TOTAL – 12)

Chapter II : Recommendations/Observations which the Committee does not desire to pursue in view of the Government’s replies: Para: 4.10, 5.6, 6.6, 8.7, 9.16, 10.7, 10.8, 14.7, 15.3 and 15.4.

(TOTAL – 10)

The Committee is convinced with the explanation furnished by the Department and, therefore, does not want to pursue above-mentioned recommendations further.

Chapter III : Recommendations/Observations in respect of which replies of the Government have not been accepted by the Committee:

Para: (TOTAL - Nil)

Chapter IV : Recommendations/Observations in respect of which final replies of the Government are still awaited: Para: 16.4.

(TOTAL - 1)

3. The Committee desires that the Department should furnish the updated information regarding the paragraph mentioned in Chapter IV of the Report.

4. The details of the ATR have been discussed in the respective Chapters in the succeeding pages.

1 CHAPTER-I

RECOMMENDATIONS/OBSERVATIONS WHICH HAVE BEEN ACCEPTED BY THE GOVERNMENT

FINANCIAL PERFORMANCE OF THE DEPARTMENT

Recommendation/Observation

1.1 The Committee finds that financial performance of the Department has been by and large satisfactory in the past years. However, the Committee notes that during 2017-18, the Department could utilize only ` 3759.04 crore as on 31st January, 2018 against the allocated amount of ` 4629.70 crore (RE 2017-18) , which means that an amount of ` 870.66 crore still has to be utilized with two months left in the current financial year. The Committee therefore recommends that with periodic monitoring on quarterly basis, optimum utilization of allocated funds may be ensured. (Para 3.2)

Action Taken

1.2 The Department takes note of the Committee’s recommendation of periodic monitoring on quarterly basis for optimum utilization of allocated funds. It is submitted that against a RE (2017-18) allocation of ` 4629.70 crore, actual utilization during 2017-18 was ` 4618.83 crore.

PUBLIC SECTOR UNDERTAKINGS - NATIONAL RESEARCH DEVELOPMENT CORPORATION (NRDC)

Recommendation/ Observation

1.3 The Committee notes that only ` 1.74 crore (up to 31.01.2018) has been utilized against the allocated amount of ` 3.75 crore (RE 2017-18) and hence expresses its deep concern over underutilization of allocated amount during 2017-18. The Committee hopes that proper planning would be done for optimum utilization of allocated amount during 2018-19. (Para 5.7)

Action Taken

1.4 The Department released an amount of ` 1.74 crore to NRDC on 25th September, 2017 but no further amount was released till 31.01.2018 since approval for continuation of the scheme till end of 14th Finance Commission was obtained in February, 2018. Thereafter, the balance amount of ` 2.01 crore was released and the RE was completely utilized. The department will optimize the utilization of allocated amount during 2018-19 by quarterly monitoring of physical and financial progress.

AUTONOMOUS INSTITUTIONS - CONSULTANCY DEVELOPMENT CENTRE (CDC)

Recommendation/Observation

1.5 The Committee hopes that no cut or reduction in the allocated amount would be done during 2018-19 at RE stage for smooth & effective functioning of CDC. (Para 7.5)

Action Taken

1.6 The department will plan CDC activities during 2018-19 with quarterly monitoring of physical and financial progress and ensure that there is no cut in allocation at RE stage.

2 3

NATIONAL LABORATORIES SCHEME

Recommendation/Observation

1.7 The Committee appreciates the Department for launching major initiatives on Mission Mode such as CSIR Aroma Mission, Phytopharmaceuticals Mission, Mission on Sickle Cell Anemia, Mission on Catalysis for Sustainable Development etc. These initiatives would certainly benefit the citizens of the country in general and farmers, industries, entrepreneurs and the children who are suffering from Sickle Cell Anemia in tribal areas in particular. The Committee hopes that with the concerted and co-ordinated efforts of the Department would yield desired results and immensely benefit the various stakeholders. The Committee is also of the view that these mission initiatives would generate employment opportunities and also add to the cause of self-employment for the youths of the country. (Para 9.4)

Action Taken

1.8 These missions are progressing as per planned objectives and deliverables.

Recommendation/Observation

1.9 The Committee feels that collaboration/partnership with international agencies of the different countries in various fields of science would go a long way in terms of knowledge sharing & gathering experiences as well as attracting funding for R&D of the CSIR. Hence, the Committee recommends that Department should make earnest efforts to have more and more collaboration/partnership with the scientific institutions of the developed countries. (Para. 9.7)

Action Taken

1.10 Committee’s observations on International Partnerships provided a stimulus to the Department. Accordingly, CSIR has forged/furthered institutional level S&T partnerships with several developed countries including France (CNRS), Australia (CSIRO), Taiwan (ITRI), Germany (BMBF), Italy (CNR), Japan (AIST, Hiroshima University), USA (NIEHS). Also, collaboration advantage is being explored in Africa, Asia, South Korea, among other nations.

CSIR institutes are encouraged to develop topical collaborations with their international peers. Several CSIR institutes concluded twinning arrangements with S&T institutions in the developed nations including Australia (CSIR-CECRI – Deakin University, CSIR-NAL-University of New South Wales), France (CSIR-NIO-IRD, CSIR- IICT-CNRS) and UK (CSIR-IICB/CDRI/IMTech - Durham University). Also, CSIR institutes were encouraged to actively participate in the available joint research project funding mechanisms operated by DST, DBT, ICMR and the bilateral S&T Centers of India with France, Germany and USA.

Recommendation/ Observation

1.11 The Committee appreciates the role of CSIR labs in improving lives of citizens of the country through scientific advancement and its R&D efforts which are aligned to the needs of the domestic industry and the social needs of the nation, exemplified by the Government Mission Programs and Sustainable Development Goals (SDGs). The Committee feels that it is necessary to keep & maintain pace with the latest technological developments in the world and keeping in view the fact that CSIR infrastructures ( with regard to labs) were built or acquired quite earlier, building of new infrastructures and upgradation of the existing ones are of utmost importance and should be taken up in right earnest. Therefore the Committee recommends that 4 modernization process of CSIR labs should be started at the earliest. However, the Committee is of the view that since modernization of CSIR labs require huge amount of money, it should be done in phased manner and after prioritizing the services of the labs i.e. after determining the order of preference of the labs on the basis of their high value to the citizens and analysing its criticality and necessity. For this, the Department should prepare a blue print and thereafter approach Ministry of Finance for additional allocation of funds in order to modernize CSIR labs. (Para 9.14)

Action Taken

1.12 The Department is thankful for the appreciation indicated by the Committee and also takes note of the recommendation.

Recommendation/Observation

1.13 The Committee notes that an Innovation Fund of Rs 400.00 crores has been created for the purposes of seed funding of S&T based entrepreneurs and for the hand holding of S&T based start-ups. The CSIR Innovation Fund will be deployed to enable commercialization of high-risk high-reward cutting edge technologies as well as for technologies with high socio- economic impact but long-term commercial payback. The Committee recommends that this fund may be utilized substantially in rural & far flung areas of the country especially in the backward States such as Bihar, , , Chhattisgarh, Madhya Pradesh etc. in order to augment employability in these places. (Para 9.15)

Action Taken

1.14 The Department notes the observations and views of the committee. The Department wishes to submit that the fund would operate on all India basis in a transparent mode. On one hand, it supports and nurtures ideas at nascent stage coming from large pool of scientists and technologists that have application potential and on the other hand it supports innovative High-tech Start-ups based on Science and Technology in the areas where the Ministry of Science and Technology is engaged. In addition, it would also support socially relevant technologies and technology based micro entrepreneurs in rural areas. Whilst preference will be given to the CSIR proposals, it would be open for S&T proposals from outside also.

FILING AND GRANT OF PATENTS

Recommendation/Observation

1.15 The Committee commends the efforts of CSIR in obtaining patents in India and abroad. The Committee hopes that the Department would maintain its position. However, the Committee feels that with a good number of patents, CSIR should make efforts to help Indian industries in order to develop more and more globally competitive products, for that alone will determine usefulness of patents earned by CSIR scientists. Further, the Committee also hopes that quality of the patents should be given utmost importance than quantity and CSIR will remain vigilant to safeguard our age old indisputable rights over our traditional knowledge. (Para 11.3)

Action Taken

1.16 The Department is thankful for the appreciation indicated by the Committee and also takes note of the recommendation. The Traditional Knowledge Digital Library (TKDL) unit of CSIR play an important role in safeguarding the traditional knowledge of the country. 5

WORLD RANKING OF CSIR

Recommendation/Observation

1.17 The Committee appreciates that CSIR has improved its world ranking in Government institutions as well as its overall global Ranking. However, the Committee is of the view that CSIR’ s global ranking of 75 among scientific institutions is not very encouraging or satisfactory and is still far behind amongst the globally benchmarked scientific organisations in the world. The Committee, therefore, reiterates its earlier recommendation made in 297th Report that in order to place India in the list of the top country in the scientific world, CSIR should aim to improve its place in ranking in its field and it should strive hard to achieve that ranking. (Para 12.3)

Action Taken

1.18 The Department is thankful for the appreciation indicated by the Committee and takes note of the recommendation.

PROJECTS/SCHEMES IN NORTH - EASTERN STATES

Recommendation/Observation

1.19 The Committee notes that many initiatives have been taken up by the Department in the form of various projects/schemes being run in the North-Eastern States of the country through one of the CSIR’s constituent laboratory namely CSIR- North East Institute of Science & Technology located at Jorhat in the State of . The Committee is aware that this institute has been engaged in pursuing focused R&D activities in various areas such as affordable healthcare products, Nutraceuticals and functional foods, exploration and sustainable utilization of plants and microbes, development of high yielding varieties of medicinal and aromatic plants, bioremediation and restoration of degraded environment, development of formulations/technologies for supporting MSMEs, advance materials for water and air purification, carbon based composite materials, heterogeneous catalysts for-organic transformations, eco-friendly pulping for paper industry, S&T solution to geo-hazards, safe & sustainable exploitation of geo-resources & climate change; and membrane technology for separation etc. (Para 13.4)

1.20 However, the Committee feels that lot more is needed to be done in this region as the whole region is bountifully endowed with rich minerals, forest wealth, water bodies, agro-biodiversity and rich traditional knowledge besides diversified flora and fauna including many varieties of herbal and medicinal plants. The Committee is of the opinion that the potential of the diversified natural resources of the region has not been fully tapped. The Committee, therefore, recommends that all out efforts be made for R&D in various scientific fields specific to the North- East region to the extent possible which will certainly go a long way in order to augment the incomes and improve the quality of lives of millions of people geographically spread across the North-Eastern States of the country. (Para 13.6)

Action Taken

1.21 The Department takes Note of the recommendation.

CSIR’S ROYALTY AND EARNINGS OF DEPARTMENT BY TECHNOLOGY TRANSFER

Recommendation/Observation

1.22 The Committee further feels that States should also play an important role by making contribution in 6 the R&D of the country. The Committee is also of the view that CSIR should focus R&D in its various labs keeping in view of market oriented/demand related research in order to easily commercialize the research output and augment the earnings of the Department. The Committee, therefore, recommends that earnings of the Department should be further reinvested in the R&D Sector in addition to allocation from the Government side. (Para 15.5)

Action Taken

1.23 The Department like to inform the Committee that CSIR laboratories are in the path of augmenting their external revenue by increasing the commercialization of their technologies and part of it being utilized for R&D purpose. CHAPTER – II

RECOMMENDATIONS/OBSERVATIONS WHICH THE COMMITTEE DOES NOT DESIRE TO PURSUE IN VIEW OF THE GOVERNMENT’S REPLIES

SCHEMES OF THE DEPARTMENT OF SCIENTIFIC AND INDUSTRIAL RESEARCH

Recommendation/Observation

2.1 The Committee observes that there has been persistent underutilization of allocated funds in all the above mentioned four Schemes, not only during 2017-18 but also in the previous years too. The Committee expresses its deep concern over the underutilization of fund with regard to PACE Scheme in 2017-18 in particular where only ` 0.67 crore (upto 31.01.2018) have been utilized against allocation of ` 3.00 crore (RE 2017-18). The reasons for underutilization of allocated funds have also not been given by the Department. Because of underutilizations, allocation at RE stage for 2017-18 in some of the said schemes has been reduced substantially. The Committee, therefore, insists that the Department should strengthen its administrative and monitoring mechanism for utilizing the allocated resources and evaluation in respect of expenditure is done on quarterly basis. The Committee hopes that the Department would utilize the funds allocated under all said Schemes and achieve the projected targets during 2018-19. (Para 4.10)

Action Taken

2.2 The main reason for under-utilization of funds in the four sub-schemes of umbrella scheme – “Industrial Research and Development” during 2017-18 was that approval for their continuation beyond 31st March, 2017 was obtained on 9th October, 2017, thereby limiting financial releases during the first half of 2017-18. The utilization under PACE scheme has been particularly low because of slow progress of project work at industries end in spite of rigorous follow up by the Department and inability on part of IMPRINT (MHRD) projects to raise demands.

The Department takes note of the Committee’s recommendation to strengthen its administrative and monitoring mechanism for optimum utilization of allocated resources and undertake quarterly evaluation of expenditure. The Department will be using NITI Aayog’s Output- Outcome dashboard for quarterly monitoring of physical & financial progress of schemes.

PUBLIC SECTOR UNDERTAKINGS - NATIONAL RESERCH DEVELOPMENT CORPORATION (NRDC)

Recommendation/ Observation

2.3 The Committee appreciates the efforts of NRDC in acting as a link between scientific laboratories and industrial establishments for transferring technologies. However, the Committee feels that a lot more is needed to be done to reach out to people living in rural areas by developing appropriate technologies for those areas which will improve their living conditions. (Para 5.6)

Action Taken

2.4 The Department and NRDC is thankful to the Committee for appreciating its efforts in transferring technologies from scientific laboratories to industrial establishments. NRDC supports the endeavor of local voluntary agencies in implementing rural technology based projects by way of organizing demonstration-

7 8 cum-training programmes in different parts of the country. Some of the training programmes conducted in the recent past are:

1. Engineering Design Package (EDP) on CSIR-NEERI Zar- low cost water purification system at Rangpo, East .

2. EDP training on Hand made paper at CSIR-NEIST Jorhat

3. Solar energy solution in remote tribal areas by tribal youth at Sri Kakulam, Andhra Pradesh

4. Skill training on brass melting furnace for production of brass artifacts, home décor items and ornaments at NML

As suggested by the Committee, NRDC will develop appropriate technologies and reach out to a larger no. of people living in rural areas with a view to improve their living condition.

CENTRAL ELECTRONICS LTD. (CEL)

Recommendation/Observation

2.5 The Committee notes that only 64.10% (upto 31.01.2018) amount was utilized by CEL during 2017-18. The Committee fails to understand that why CEL sought funds at BE and RE stage during 2017- 18 on higher side but was unable to utilize that optimally. The Committee observes this trend for the last three years. The Committee hopes that Department would be able to utilize the allocated amount of ` 5.00 crore (BE 2018-19).CEL also should try to find out the reasons responsible for not utilizing the funds fully and take preventive action in the next financial year i.e. 2018-19. (Para 6.6)

Action Taken

2.6 The Department released an amount of ` 6.25 crore to CEL on 29th September, 2017 out of the allocation of ` 9.00 crore but no further amount was released till 31.01.2018 since approval for continuation of the scheme till end of 14th Finance Commission was obtained in February, 2018. Later on, CEL submitted a proposal in March, 2018 for release of balance amount but it could not be approved by the Department due to certain shortcomings in the proposal. During the last three years i.e. 2014-15, 2015-16 and 2016-17, fund utilization by CEL has been has been 100%, 91% and 72% of RE, respectively. The reason for this has been that during 2015-16, disbursement of loan to PSUs was stopped by Government and during 2016-17, CEL could not get approval of the competent authority before end of F.Y. 2016-17 for an envisaged project. The Department will optimize the utilization of allocated amount during 2018-19 by quarterly monitoring of physical and financial progress.

COUNCIL OF SCIENTIFIC AND INDUSTRIAL RESEARCH (CSIR)

Recommendation/Observation

2.7 The Committee appreciates the efforts of CSIR in publishing large number of research papers in International SCI journals every year. The Committee notes that CSIR was able to publish 5277 papers in SCI journals in the year 2017 with an average impact factor per paper as 3.217. However, the Committee observes that good work done by the CSIR in the form of research papers do not translate into sustainable technologies for use of the masses. Hence, the Committee reiterates its earlier recommendation made in its 297th Report that the Department should make all out efforts so that 9 researches & inventions may be translated into sustainable technologies and also for undertaking more original research work. (Para 8.7)

Action Taken

2.8 The Department is thankful for the appreciation indicated by the Committee. The Department likes to inform the Committee that the translation of published papers into technologies takes time. The Department is now pursuing technological developments through Fast Track Translation (FTT) and Fast Track Commercialization (FTC) mode of its promising R&D leads.

NATIONAL LABORATORIES SCHEME

Recommendation/Observation

2.9 The Committee has observed that maximum of BE 2018-19 has been allocated for CSIR for its two Schemes, one is National Laboratories and second one is National S&T Human Resource Development. The Committee also notes that during 2017-18 only ` 3504.72 crore was utilized under National Laboratories Scheme till 31.01.2018 against the allocation (RE) of ` 4357.12 crore which was enhanced at RE stage. The Committee fails to understand that the Department had sought more money at RE stage but could spent only ` 3504.72 crore. This shows the lack of proper planning and monitoring on the part of the Department. The Committee is of the view that at one hand the Department is contemplating the additional amount for its various projects and for upgradation of its labs, but on the other hand the Department could not utilize the allocated amount. Therefore, the Committee recommends that Department should have a robust, proper monitoring and planning mechanism in place so that allocated amount is utilized fully during 2018-19. (Para 9.16)

Action Taken

2.10 The Department takes note of the recommendation for having a proper monitoring and planning mechanism for full utilization of the allocated amount during 2018-19. It is submitted that against the RE 2017-18 allocation of ` 4357.12 crore under National Laboratories, CSIR utilized ` 4348.85 crore, i.e. 99.81% as on 31-03-2018.

NATIONAL S & THUMAN RESOURCE DEVELOPMENT PROGRAMME

Recommendation/Observation

2.11 The Committee welcomes the enhancement in allocations for this Scheme from ` 225 crore in 2017-18 (RE) to ` 300 crore in BE 2018-19. However, the Committee expresses its concern over the fact that during 2017-18, an amount of ` 325 crore (BE 2017-18) was initially allocated under this Scheme which was reduced to ` 225 crore (RE 2017-18) which clearly reflects that physical targets set for 2017-18 could not have been achieved fully and many of the deserving students might have been denied the opportunities to get the fellowships/ Scholarships. The Committee, therefore, recommends that in future, the Department should ensure that no reduction is done in the allocated amount at RE stage in the important Scheme like this. (Para 10.7)

Action Taken

2.12 The Department takes note of the recommendation. However, it is important to apprise that the budget during a financial year is sought on the basis of estimated number of fellows joining during a financial 10 year and the number of students already availing the fellowship and will continue to get their fellowship in a particular financial year. During the year 2014-15, 2015-16 and 2016-17, a total of 2876, 2846 and 4870 fellowships (doctoral and postdoctoral) were awarded and out of these only 1178, 1205 and 1172, respectively joined the fellowship in the respective period. In 2017-18 an upward trend in terms of joining the fellowship is being seen and by 25th March 2018, a total of 1815 fellows have joined the fellowship. Further, in 2017-18, a total 2029 JRF-NET candidates through CSIR-UGC NET held in June-2017 have been declared qualified and not a single fellow could join as the matter is subjudice and is before the Honorable High Court of Punjab and Haryana. It is further, apprised that the tenability of JRF-NET certificate was enhanced to 2 (two) years from 1 (one) year and therefore the NET qualified JRFs have a flexibility of joining the fellowship within 2 years from the effective date of fellowship and thus the number of fellows joining the JRF-NET may vary from year to year.

Recommendation/Observation

2.13 The Committee appreciates the efforts of the Department for stimulating interest and awareness among young students towards scientific research. However, the Committee notes that most of the Scholarships/ Fellowships are provided to students at the higher level i.e. PhD/ Research levels except few like Junior Research Fellowships through CSIR-UGC National Eligibility Test etc. The Committee feels that Scholarships/ Fellowships may be provided at entry level i.e. graduation level or even Senior Secondary level to attract youth of the country to opt for science studies. (Para No. 10.8)

Action Taken

2.14 The Department is thankful for the appreciation indicated by the Committee and also takes note of the recommendation. CSIR-UGC NET JRF scheme is open to science and engineering graduates in order to attract them at an early stages of their career.

SKILL DEVELOPMENT

Recommendation/Observation

2.15 The Committee appreciates the efforts of the Department in the field of skill development. The Committee is hopeful that efforts of the Department would yield desired results in generating employment opportunities for the youths of the country. However, the Committee feels that linkages in the form of MoUs etc. must be done with the various private industries/Public Sector industries along with the Ministry of Skill Development which also runs various programmes so that these skilled persons are engaged optimally. The Committee, keeping in view of the above recommends that a system be put in place to have a constant vigil and to facilitate the unemployed youths of the country in order to integrate them in the industries after attaining their respective skill development courses. (Para 14.7)

Action Taken

2.16 The Department is thankful for the appreciation indicated by the Committee and also takes note of the recommendation. Many of the CSIR Integrated Skill programs implemented by the Department are in touch with local as well as relevant industries to enhance employability/skill upgradation of trained persons. The programmes are also industry relevant with entrepreneurial prospects.

The Department is already connected with eight Sector Skill Councils (Leather, Agriculture, Capital Goods, Life Sciences, Automotive, Paint & Coating, Mining and Aerospace) to align with National Skill 11

Mission. MoUs have been signed with National Scheduled Caste Finance Development Cooperation (NSFDC), State Skill Development Councils, ITIs etc. by CSIR laboratories. The Department is also in touch with Ministry of Skill Development & Entrepreneurship (MSDE) for possible collaboration. The Department is in the process of putting in place a system to monitor the programs implemented for their possible employability.

CSIR’S ROYALTY AND EARNINGS OF DEPARTMENT BY TECHNOLOGY TRANSFER

Recommendation/Observation

2.17 The Committee during the meeting had observed that income of the Department from royalty component is very low as compared to the huge investment of the Government on account of research/ innovations/ R&D etc. vis-a-vis profit earned by the private companies/industries by making commercial use of technologies developed by the Department. In view of this, the Committee reiterates its earlier recommendation made in 297th Report and recommends that Memorandum of Understanding (MoU) should be signed with the companies/industries for fixing royalty component while making technology transfer/inventions for allowing its product for commercial utilization so that Department could be financially self reliant and also invest in R&D. (Para 15.3)

Action Taken

2.18 The Department thankfully notes the observations of the Committee. MoUs signed with companies/ industries at the time of sanctioning technology development and commercialization projects do fix the royalty percentage to be paid by industries but the amount of royalty realized depends upon the actual commercialization and the earnings made by companies, which varies as per the prevailing market and technology scenario. CSIR has also put in place new guidelines for technology transfer and Utilization of Knowledgebase-2017. The Department endeavours to maintain a balance between its objectives of promotional role for technological upgradation of industry and to ensure that more and more royalty accrues to Government, which can be ploughed back into further R&D.

Recommendation/Observation

2.19 The Committee has observed that investment in Research and Development (R&D) from the Central Government is 0.6 % of GDP which is a fraction of GDP whereas in other countries investment in R&D is US (2.8), China (2.1), Israel (4.3), and Korea (4.2). As per Economic Survey 2017-18, in most countries, the private sector carries out the bulk of R&D even though the Government play an important role in the area. However, in India, the Government is not just the primary source of R&D but also the primary user of the funds, thus Government expenditure on R&D is undertaken almost entirely by the Central Government. Private investments in research have lagged in India. According to one analysis (Forbes, 2017) there are 26 Indian companies in the list of the top 2,500 global R&D spenders compared to 301 Chinese companies. 19 (of these 26) firms are in just three sectors: pharmaceuticals, automobiles and software. India has no firms in five of the top ten R&D sectors as compared to China that has a presence in each of them. In view of the above, the Committee is of the view that investment in R&D in the country is required to be enhanced substantially by the Central Government. The Committee feels that Department must evolve some institutional mechanism to involve private companies/ industries for investing towards R&D by providing them some kind of incentives like tax benefits etc. (Para 15.4) 12

Action Taken

2.20 The Department takes note of the observations of the Committee. In order to increase the expenditure on R&D by Public and Private sector, the Department implements a number of fiscal incentives for scientific research, available from the Government. Fiscal incentives available to DSIR recognised in-housed R&D units of industry, Scientific and Industrial Research Organizations (SIROs) and Public Funded Research Institutions (PFRIs) are:

z 100% write-off of revenue expenditure on R&D under section 35(1)(i) of I.T. Act, 1961.

z 100% write-off of capital expenditure on R&D in the year the expenditure is incurred under section 35(1) (iv) of I.T. Act, 1961.

z Weighted Tax deduction @150% on expenditure incurred in approved in-house R&D facility, to companies engaged in business of biotechnology or in any business of manufacture or production of any article or thing (not being an article or thing specified in the list of the eleventh schedule) under section 35(2AB) of I.T. Act, 1961. Provision is valid till 31-03-2020.

z Weighted tax deductions@150% for sponsored research programmes in approved National laboratories, Universities and IITs (Section 35(2AA) of I.T. Act).

z Accelerated depreciation allowance upto 40% on investment on new plants and machinery based on indigenous technology as per rule 5(2) of I.T. Rules.

z Customs duty exemption in terms of Government Notifications No. 51/96-Customs dated 23.07.1996; No. 24/2007-Customs dated 01.03.2007; No. 43/2017-Customs dated 30.06.2017; No. 45/2017-Central Tax (Rate) & 47/2017-Integrated Tax (Rate) dated 14.11.2017; No. 9/2018-Central Tax (Rate), No. 09/2018-Union Territory Tax (Rate) & No. 10/2018-Integrated Tax (Rate) dated 25.01.2018; and State Tax (Rate) as applicable and all notification, as amended from time to time. CHAPTER – III

RECOMMENDATIONS/OBSERVATIONS IN RESPECT OF WHICH REPLIES OF THE GOVERNMENT HAVE NOT BEEN ACCEPTED BY THE COMMITTEE

Nil

13 CHAPTER – IV

RECOMMENDATIONS/OBSERVATIONS IN RESPECT OF WHICH FINAL REPLIES OF THE GOVERNMENT ARE STILL AWAITED

NATIONAL CIVIL AIRCRAFT DEVELOPMENT PROGRAMME (NCAD)

Recommendation/Observation

4.1 The Committee is unable to understand that why this project is making no headway for the last many years. The Committee also expresses its deep concern over the fact that we have mastered the space technology indigenously but still not been successful in making civil aircraft for the country. The Committee, therefore, recommends that proper and realistic planning be made for this project along with adequate budgetary provision so that this project could take off. Further, the Committee also recommends that the nodal Ministry/Department for taking the whole responsibility be identified and decision on the commercial partner be taken for strategically launching the project at the earliest. (Para 16.4)

Action Taken

4.2 The Department like to inform the Committee that CSIR through its constituent laboratory is pursuing R&D programmes on 19 seater aircraft and 70-90 regional transport aircraft. However, the formation of a Special Purpose Vehicle between Hindustan Aeronautics Ltd. (HAL) and CSIR-National Aerospace Laboratories has been agreed in-principle is yet to be made operational. The nodal Ministry/Department for taking the whole responsibility needs to be identified. Also a commercial partner for co-development needs to be decided for strategically launching the project.

Further Recommendation/Observation

4.3 The Committee observes that the Department has not responded to the recommendation of the Committee for identifying the nodal Ministry/Department for the project and decision on the commercial partner for strategically launching the project. The Committee recommends that action taken in the matter may be communicated to the Committee.

14 RECOMMENDATIONS/OBSERVATIONS — AT A GLANCE

NATIONAL CIVIL AIRCRAFT DEVELOPMENT PROGRAMME (NCAD)

The Committee observes that the Department has not responded to the recommendation of the Committee for identifying the nodal Ministry/Department for the project and decision on the commercial partner for strategically launching the project. The Committee recommends that action taken in the matter may be communicated to the Committee. (Para 4.3)

15

MINUTES

V FIFTH MEETING

The Committee met at 3.00 P.M. on Thursday, the 27th December, 2018 in Committee Room No.4, ‘A’ Block, Ground Floor, Parliament House Annexe Extension, New Delhi.

MEMBERS PRESENT 1. Shri Anand Sharma — Chairman

RAJYA SABHA 2. Shri S.R. Balasubramoniyan 3. Shri Anil Baluni 4. Shri Parimal Nathwani

LOK SABHA 5. Shri E.T. Mohammed Basheer 6. Shri Prabhatsinh Pratapsinh Chauhan 7. Shri Sunil Kumar Jakhar 8. Shri Ramesh Chander Kaushik 9. Shrimati Vasanthi M. 10. Shri Daddan Mishra 11. Shri 12. Shri Kirti Vardhan Singh 13. Shri Vikram Usendi

SECRETARIAT Shrimati Sunita Sekaran, Joint Secretary Shri T.N. Pandey, Director Shri S. Rangarajan, Additional Director Shri Mohd. Salamuddin, Additional Director Shri Rajiv Saxena, Under Secretary

2. At the outset, the Chairman welcomed the Members to the meeting of the Committee. He informed the Members that the meeting had been convened to consider and adopt the draft 317th, 318th, 319th, 320th, 321st, 322nd and 323rd reports of the Committee on Action Taken by the Government on the recommendations/observations of the Committee contained in reports of the Committee on Demands for Grants (2018-19) of the Ministries/Departments of Biotechnology; Science and Technology; Scientific and Industrial Research; Space; Environment, Forest and Climate Change; Atomic Energy; and Earth Sciences respectively. The Committee, then, considered the draft 317th to 323rd reports and adopted the same.

3. The Committee decided to present/lay its 317th to 323rd reports in both the Houses of Parliament on the 2nd January, 2019. The Committee also authorised the Chairman to decide the names of the Members for presentation/laying of the reports in both the Houses of Parliament.

4. The meeting of the Committee adjourned at 3.25 P.M.

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