India – UK Collaborative R&D for industrial Sustainability

1. Summary
The aim of this programme is to fund business led, collaborative research and
development (CR&D) projects focused on industrial research in Net Zero Technologies,
for innovative proposals developed between the UK and India.
Proposals must include at least one business partner from the UK and one business
partner from India.
Projects must:
1. be innovative
2. be a new product, process or service
3. involve a technological risk
4. have a high market potential in the participating countries
Your project must:

• have a grant funding request of no more than INR 150.00 lakhs (India) & between
£100,000 and £300,000 (UK).
• start by 01 Sept 2025
• end by 29 Feb 2027
• last between 06 and 18 months

2. Funding and Implementing Agency

Department of Science & Technology (DST): The Department of Science &
Technology (DST) was established in May 1971, with the objective of promoting new
areas of Science & Technology and to play the role of a nodal department for
organizing, coordinating and promoting S&T activities in the country. The Department
of Science & Technology (DST), Government of India has an important role in building
a strong base for Research, Development and Demonstration in India and in
addressing national concerns about strengthening science and technology. DST, as a
national agency for strengthening the base of Science and Technology in the country
has made sincere attempt to address national concerns of India in basic as well as
applied research. For more information about DST, please visit www.dst.gov.in
Technology Development Board (TDB): The Technology Development Board
(TDB) was constituted in September 1996 under the Technology Development Board
Act, 1995, as a statutory body, to promote development and commercialization of

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indigenous technology and adaptation of imported technology for wider application.
The TDB is the first organization of its kind within the government framework with the
sole objective of commercializing the fruit of indigenous research. The Board plays a
pro-active role by encouraging enterprises to take up technology-oriented products.
The TDB provides financial assistance to Indian industrial concerns and other
agencies, attempting development and commercial application of indigenous
technology, or adapting imported technology to wider domestic applications. For more
information about TDB, please visit www.tdb.gov.in
Innovate UK: Innovate UK is the UK’s national innovation agency. They support
business-led innovation in all sectors, technologies and UK regions. They help
businesses grow through the development and commercialization of new products,
processes, and services, supported by an outstanding innovation ecosystem that is
agile, inclusive, and easy to navigate. For further information please visit
https://www.ukri.org/.

3. Description
TDB, on behalf of DST, will work with Innovate UK to support innovation projects within
a consortium.
The consortium must include at least one business partner registered in India and one
business partner registered in the UK that are separate legal entities. This is to ensure
that projects encourage genuine international collaboration, not internal company
research. Linked companies are considered a single entity under the parent company.
Projects must represent genuine partnerships. No more than 70% of the total work
packages can be delivered by any single partner or by all partners from a single
participating country.
Subcontractor work distribution will not be more than 30% on either side.

4) Eligibility

Who can apply

To lead a project from Indian side

An Indian company headquartered in India having requisite understanding and

capability to undertake R&D activities will be project lead. Academic institutions,
Research entities and other R&D institutes having headquarter and operational base
in India are strongly encouraged to participate in the projects as Partners with Project
Lead.

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 • The Indian Project Lead (i.e., lead company) must be a commercial (for profit)
company under the Indian Company Act 1956/2013, which operates in and is
headquartered in India.
• At least 51% stake of the lead Company must be owned by Indian citizens.
• The lead company should have the required expertise and team capacity to
manage the proposed project.
• Sole proprietors and partnership firms are not eligible for support under this
programme
• Companies headquartered and owned outside India and their subsidiaries in
India, or vice versa, are not eligible to receive funding from DST/TDB under this
programme.
• Lead company should lead the project from Indian side and if required bring in
other Industry Partners or Academic/R&D Institutions as partners.

Preferences will be given to:

• Indian companies having in-house R&D Centre which is recognized by the
Department of Scientific and Industrial Research (DSIR), Government of India.
• Companies that fall under the Micro, Small and Medium Enterprise (MSME)
category, as defined by the Government of India.

To lead a project on the UK side, your organization must:

1) be a UK registered business of any size

2) be or involve at least one grant claiming UK registered micro, small or medium-
sized enterprise (SME)
3) collaborate with an Indian registered business, which must be a separate legal
entity, not linked to the UK partners
More information on the different types of organization can be found under the UK’s
Funding rules.

Academic institutions cannot lead or work alone.

Project team
To collaborate with the lead, your organization must be one of the following UK
registered:
• business of any size
• academic institution
• research and technology organization (RTO)

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 5) Scope
The aim of this competition is to fund collaborative research and development (CR&D)
projects between the UK and India focused on industrial sustainability.

Projects must demonstrate:

• a clear game changing or disruptive innovative idea leading to new products,

processes or services
• a strong and deliverable business plan addressing market potential and needs
• sound, practical financial plans and timelines
• value for money which will always be a consideration in Innovate UK and
Department of Science and Technology funding decisions
• a clear, evidence-based plan to deliver significant economic impact, return on
investment (ROI) and growth through commercialization, as soon as possible
after project completion
• Considerable potential to significantly benefit the UK or India economy or
national productivity
• the benefits and value of participants from the countries working together and
how this adds value
• a clear definition of where intellectual property (IP) can be used and shared
between the participants and countries
• a clear route to exploitation/commercialization

We would particularly welcome applications that focus in either advance material &
manufacturing and renewable energy (storage and distribution).

6. Funding

(A) Funding for Indian Applicants

Selected project participants will receive funding from TDB, on behalf of Department
of Science & Technology (DST), Government of India, in India and from UK Research
and Innovation (UKRI) in UK respectively. Funds will be provided in accordance with
the national laws, rules, regulations and procedures established by each organization,
and/or each jurisdiction/country. TDB on behalf of the Department of Science &
Technology (DST), Government of India, will fund the successful projects, as follows:

• Total project funding as “Royalty Based Conditional Grant” for Indian

applicants to a maximum of INR 150 lakhs per project or 50% of the Indian
Project cost, whichever is lower.

• Indian industry share can range from INR 100 lakhs minimum to INR 125
lakhs maximum, if partnering with Indian R&D organization/academic
institution.

• Indian R&D organization/academic institution share can be upto INR 50

lakhs maximum and may receive up to 100% of their costs (within applicable
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 range specified above and as per proposal) on a reimbursement/advance
basis as a Grant.

• Indian industry may receive up to 50% of their part of the eligible cost on a
reimbursement basis, for costs already incurred on a proportionate basis on the
completion of milestones

• Funding from other public sector sources will be taken into account when
awarding grant, and applicants will be asked to declare funding from other
sources in the application

Although the individual type and value of individual contributions allocated to India-UK
project may vary, each bilateral project must highlight the total contribution from each
participating country. Total contribution may be defined as the combined value of cash,
human resource effort, services and/or equipment that each country invests in an R&D
project.
DST through TDB shall provide the funding in the following proportion to the Indian
Applicants. These are indicative figures and are subject to change depending on the
type of Project and recommendation by the Joint Project Evaluation Committee:

1. Equipment 40%
2. Manpower 30%
3. Consumables 20%
4. Travel/Others 10%

Indian applicants will be required to open a separate No-Lien bank account for
managing the project funding.

Each applicant company is required to complete its respective proposed project

budget form. The proposed project budgets will be qualified for evaluation. Project
costs considered to be eligible for cost sharing are: direct manpower excluding top-
level management who are not directly involved in activities related to this project,
consumable materials, equipment, consulting services, subcontractors, project
associated travel (domestic and international), outlays to meet regulatory
requirements, IPR filing, and other expenses that are directly related to the joint
project. The program recognizes the procurement, usage and depreciation costs
according to the rules and regulations of each funding entity. For full details on what
costs you can claim see the Project Cost guidelines.

Royalty payments

If your project is granted funding from this RFP/competition and the project is
successful, only the Indian Industry Partners shall pay royalty payments to TDB at the
rate of 2-5% annually on the Net Sales of the product to the extent of funds received
by the industry partners, developed with TDB’s fund assistance, commencing from
the date of start of commercialization.

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 Royalty for each financial year shall be payable to TDB by the Indian Industry Partners
within 30 days of close of the corresponding financial year. For this purpose, the Indian
Industry Partners shall submit an Auditor’s certificate for the corresponding period of
the financial year for calculating royalty. In case of delay in payment of royalty, the
Indian Industry Partners shall be liable to pay simple interest at the rate of 12 percent
per annum on the amount of default in payment of royalty.

(B) Funding for UK Applicants

Funding will be in the form of a grant. The funders have the right to apply
a ‘portfolio’ approach to ensure a balance of sectors, themes, technologies and
technology maturity is represented.
For feasibility studies and industrial research projects, you could get funding for your
eligible project costs of:
• up to 70% if you are a micro or small organisation
• up to 60% if you are a medium sized organisation
• up to 50% if you are a large organisation

Number of applications

• A UK registered business can lead on one application but can be included as a

collaborator in a further 2 applications.
• If a UK registered business is not leading any application, it can collaborate in
up to 3 applications.
• A UK registered academic institution or RTO can collaborate on any number of
applications.
Each organisation in your project must complete their own project costs, organisation
details and funding details in the application. Academic institutions must complete and
upload a Je-S form.
For full details on what costs you can claim see here project costs guidance.
Innovate UK will not fund projects that:
• work on military applications
• do not meet Innovate UK’s or Department of Science and Technology’s eligibility
criteria
• do not submit all mandatory documentation
• request grant of more than £300,000 from Innovate UK
• do not have an eligible Indian partner
• dependent on export performance for example, giving a subsidy to a baker on the
condition that it exports a certain quantity of bread to another country
• dependent on domestic inputs usage for example, giving a subsidy to a baker on
the condition that it uses 50% UK flour in their product

7. Key Documents Required from Indian Applicants

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In addition to submitting the Application Form and its appendices, the Indian Project
Lead will also be required to submit/upload the following:

1. Covering letter
2. Common Proposal Form
3. Presentation for Evaluation Committee Meeting – add photographs in PPT
4. Memorandum of Understanding (MoU) between All Consortium Partners. This MoU
should basically cover the following points:
I. Percentage sharing of IP Rights on new product/process/knowledge being
developed/ created/invented during this collaborative R&D Process.
II. Background IP’s of the partnership (If Any) to be used for this project scope.
III. Probable/possible market for the new product/process/knowledge & rights
to manufacture/License in the respective market for the period of Time (time
span)
IV. % sharing of Royalty
V. Dispute and arbitration clause
VI. Exclusivity and Non-Exclusivity rights if any
VII. Duration of this agreement in force
5. Registration Certificate of all project partners, including Academia/R&D Labs, issued
by competent authority
6. In case of in-house R&D Centres, all relevant certificates from stakeholders, competent
authority relevant for in-house R&D, Defence Manufacturing & production should be
submitted.
7. Audited Annual Reports (including Income Tax Return, Balance Sheet, and Profit &
Loss Account & Auditor’s Reports) of all Consortium partners for the last three
Financial Years.
8. Know Your Customer (KYC) documents of all Consortium partner(s). KYC means
Identity & Address proof of the organization which includes Company PAN Card,
Electricity Bill, etc.)
9. Self-Declaration of Applicant on Company letterhead, signed by MD/CEO/Company
Secretary, as all Statutory Norms are complied by the Applicant till date.
10. Share Holding Patter of the Company (highlighting the Foreign Investment, if any)
11. Copy of all relevant Certification like CMMI, ISO, etc. if any.

8. Contact Information

India UK

Mr Deepak Chaturvedi, Project Manager Ms. Charlie Fraser

Technology Development Board (TDB) Innovate UK
Website - www.tdb.gov.in https://www.ukri.org/councils/innovate-uk/
Email: [email protected] [email protected]

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 Annexure-I

Application questions

This section provides background for your application and is not scored.

Application team

Decide which organisations will work with you on your project and invite people from
those organisations to help complete the application.

Application details

Give your project’s title, start date and duration.

Research category

Select the type of research you will undertake.

Project summary
Describe your project briefly and be clear about what makes it innovative. We use this
section to assign the right experts to assess your application. Your answer can be up
to 400 words long.

Scope

Describe how your project fits the scope of the competition. If your project is not in
scope it will not be sent for assessment. Your answer can be up to 400 words long.

Application Questions

You must answer all questions. Your answer to each question can be up to 400 words
long. Do not include any website addresses (URLs) in your answers.

Question 1. Applicant location (not scored)

You must state the name and full registered address of your organisation and any
partners or subcontractors working on your project. We are collecting this information to
understand the geographical location of all applicants.

Question 2. Theme (not scored)

You must select the theme in which the majority of your project is focused.

1. Sustainable Materials and Manufacturing

2. Power Electronics, Machines and Drives (PEMD)

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Question 3. Common proposal form (not scored) – see attached document

This form is to enable Innovate UK and its assessors to gain an understanding of the
costs of the whole project for the participants in both countries.

You must download and complete the ‘Common Proposal Form’ template, then upload
as an appendix. It must be a PDF and no larger than 10MB in size. The font must be
legible at 100% zoom.

Question 4. Need or challenge

What is the business need, technological challenge, or market opportunity behind your
innovation?

Explain:

• the main motivation for the project

• the business need, technological challenge or market opportunity
• whether you have identified any similar innovation and its current limitations,
including those close to market or in development
• any work you have already done to respond to this need, for example if the project
focuses on developing an existing capability or building a new one the wider
economic, social, environmental, cultural or political challenges which are
influential in creating the opportunity, such as incoming regulations.

Question 5. Approach and innovation

What approach will you take and where will the focus of the innovation be?

Explain:

• how you will respond to the need, challenge or opportunity identified

• how will you improve on the similar innovation that you have identified
• whether the innovation will focus on existing technologies in new areas, the
development of new technologies for existing areas or a totally disruptive
approach
• the freedom you have to operate
• how this project fits with your current product, service lines or offerings
• how it will make you more competitive
• the nature of the outputs you expect from the project (for example report,
demonstrator, know-how, new process, product or service design) and how these
will help you to target the need, challenge or opportunity identified

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You can submit one appendix to support your answer. It can include diagrams and
charts. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The
font must be legible at 100% zoom.

Question 6. Team and resources

Who is in the project team and what are their roles?

Explain:

• the roles, skills and experience of all members of the project team that are relevant
to the approach you will be taking
• the resources, equipment and facilities needed for the project and how you will
access them
• the details of any vital external parties, including subcontractors, who you will
need to work with to successfully carry out the project
• if your project is collaborative, the current relationships between project partners
and how these will change as a result of the project
• any roles you will need to recruit for

You can submit one appendix with a short summary of the main people working on your
project to support your answer. It must be a PDF, up to 4 A4 pages long and no larger
than 10MB in size. The font must be legible at 100% zoom.

Question 7. Market awareness

What does the market you are targeting look like?

Describe:

• the target markets for the project outcomes and any other potential markets
(domestic, international or both)
• the size of the target markets for the project outcomes, backed up by references
where available
• the structure and dynamics of the target markets, including customer
segmentation, together with predicted growth rates within clear timeframes
• the target markets’ main supply or value chains and business models, and any
barriers to entry that exist
• the current position in targeting these markets
• the size and main features of any other markets not already listed

If your project is highly innovative, where the market may be unexplored, describe or
explain:

• what the market’s size might be

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 • how your project will try to explore the market’s potential

Question 8. Outcomes and route to market

How are you going to grow your business and increase long term productivity as a result
of the project?

Explain:
• your current position in the markets and supply or value chains outlined, and
whether you will be extending or establishing your market position
• your target customers or end users, and the value to them, for example, why they
would use or buy your product
• your route to market
• how you are going to profit from the innovation, including increased revenues or
cost reduction
• how the innovation will affect your productivity and growth, in both the short and
the long term
• how you will protect and exploit the outputs of the project, for example through
know-how, patenting, designs or changes to your business model
• your strategy for targeting the other markets you have identified during or after
the project
If there is any research organisation activity in the project, describe:
• your plans to spread the project’s research outputs over a reasonable timescale
• how you expect to use the results generated from the project in further research
activities

Question 9. Wider impacts

What impact might this project have outside the project team?

Describe and, where possible, measure the economic benefits from the project such as
productivity increases and import substitution, to:

1. external parties
2. customers
3. others in the supply chain
4. broader industry
5. UK and Indian economies

Describe and, where possible, measure:

• any expected impact on government priorities

• any expected environmental impacts, either positive or negative
• any expected regional impacts of the project

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Describe any expected social impacts, either positive or negative on, for example:

• quality of life
• social inclusion or exclusion
• jobs, such as safeguarding, creating, changing or displacing them
• education
• public empowerment
• health and safety
• regulations
• diversity

Question 10. Project management

How will you manage your project effectively?

Explain:

• the main work packages of your project, indicating the lead partner assigned to
each and the total cost of each one
• your approach to project management, identifying any major tools and
mechanisms you will use to get a successful and innovative project outcome
• the management reporting lines
• your project plan in enough detail to identify any links or dependencies between
work packages or milestones

You must submit a project plan or Gantt chart as an appendix to support your answer. It
must be a PDF, up to 2 A4 pages long and no larger than 10MB in size.

Question 11. Risks

What are the main risks for this project?

Describe:

• the main risks and uncertainties of the project, including the technical,
commercial, managerial and environmental risks
• how you will mitigate these risks
• any project inputs that are critical to completion, such as resources, expertise,
and data sets
• any output likely to be subject to regulatory requirements, certification, ethical
issues and so on, and how you will manage this

You must submit a risk & Mitigation strategy as an appendix to support your answer. It
must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must
be legible at 100% zoom.

Question 12. Added value

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How will this public funding help you to accelerate or enhance your approach to
developing your project towards commercialisation? What impact would this award have
on the organisations involved?

Explain:

• what advantages public funding would offer your project, for example, appeal to
investors, more partners, reduced risk or a faster route to market (this list is not
exhaustive)
• the likely impact of the project outcomes on the organisations involved
• what other routes of investment you have already approached
• what your project would look like without public funding
• how this project would change the R&D activities of all the organisations involved

Question 13. Costs and value for money

How much will the project cost and how does it represent value for money for the team
and the taxpayer?

In terms of your project goals, explain:

1. your total project costs for all UK and India project partners
2. the allocation of total eligible project costs for all UK and India project partners
3. the grant you are requesting from Innovate UK/DST
4. how each UK/Indian project partner will finance their contributions to the project
5. how this UK/Indian project represents value for money for you and the UK/Indian
taxpayer
6. how it compares to what you would spend your money on otherwise
7. the balance of costs and grant across the project partners
8. any subcontractor costs and why they are critical to your project

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 Annexure-II

Your Project Costs - Guidance for Indian Applicants

What You Can Claim as Eligible Costs for the Project?

This document is intended for use with the Competition Guidance Document. It covers
the following:
➢ Eligible project costs: What you can claim as eligible costs for the project
➢ Costs which are not eligible for funding
➢ Items to be included in project costs

There are ranges of costs that can be supported as your eligible project costs.
The estimates of the costs that you use to complete the project cost must be the total
costs for the project and will include costs for all activities and all participants that are
involved in your section (part) of the project.

Please Note: Any revenue generation activities cannot be included as part of project
costs. Only Research & Development related activities can be included as part of
project costs.
Eligible Costs

For a cost within your project to be eligible for funding it must:

- be incurred and paid between your project start and end dates.
- meet the eligibility criteria in the categories listed below.
TDB pays your grant based on audited actual eligible costs. These costs must be
incurred and paid between your project start and end dates.
1. Labour Cost:
You may claim the labour costs of all individuals working directly on your project. You
need to list the total man-days worked by all personnel working directly on your project
and briefly describe their role.

Your eligible labour costs will be on the basis of salary amounts actually incurred and
paid. You therefore cannot include any form of in-kind/goodwill contribution by staff
members or costs relating to profit related pay, dividends, shares, share options,
royalties or similar remuneration methods.
The total number of working days per year for the organisation is based on full time
working days per year less standard holiday allowance. Sick days, waiting time,
training days and non-productive time are not eligible as part of the calculation.
Project Management cost:

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The costs of project management by an Indian Project Lead (IPL) on behalf of the
Indian consortium (IPL and collaborating R&D organisation/academic institution are
eligible and should be included within your Labour calculation. In cases where your
project management is sub-contracted, a strong case should be made for the
necessity and benefits of this approach.

2. Overheads
In every project, there are always some overheads. These overheads, however, will
be determined by the Project Evaluation Committee (PEC), on a case to case basis,
at a flat rate (percentage) to the total project cost. While determining the overhead flat
rate (percentage), PEC will take into consideration the following:
➢ Board and Senior Management Salaries and Fees should relate to the
executive function of the organisation (e.g. Board of Directors). You should only
include senior staff members that are purely strategic or administrative in
function NOT income generating or customer facing/selling. You should NOT
include distribution/supply chain, selling or marketing senior staff.
➢ Administrative support functions include HR, finance, IT, site services and any
other administrative support activities. You should NOT include income
generating functions or related functions such as distribution/supply chain,
selling or marketing.
➢ Bonuses, awards, profit related pay, company car expenses and any
discretionary benefits to staff are ineligible.
➢ Sales, Marketing and Account Management costs are ineligible.
➢ Entertainment and hospitality costs are ineligible.
➢ Patent maintenance costs are eligible but should NOT include new filings and
search fees in new territories or costs relating to Trademarks.
➢ General, site and utility costs should be relevant to administrative facilities NOT
operational/production facilities.
➢ Non-productive time or waiting time between projects is ineligible.

3. Materials Consumed

The costs of materials to be consumed directly on your project are eligible costs,
provided that they are not already included in the overheads and purchased from third
parties. If material has a residual/resale value at the end of your project, costs should
be reduced accordingly. If you are using materials supplied by associated companies
or sub contracted from other consortium members then you are required to exclude
the profit element of the value placed on that material - the materials should be
charged at cost.

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 Software that you have purchased specifically for use during your project can be
included in materials. However, if you already own software which will be used in the
project, or it is provided for usage within your consortium by a consortium member,
only additional costs incurred & paid between the start and end of your project will be
eligible. Examples of costs that may be eligible are those related to the preparation of
disks, manuals, installation, training or customisation. Costs should be split between
their component parts and allocated to the appropriate cost category.
4. Capital Usage

Capital usage refers to an asset utilised by your planned project, which has a useful
life of more than one year, is stand-alone, distinct and moveable.

You should provide details of capital equipment and tools to be bought for your project.
5. Sub-contracts, Consultancy Fees (including Fees for Trial and Testing)

Sub Contract costs relate to work carried out by third party organisations that are not
part of your project or your collaborative group. You may sub contract work that is
essential to the success of your project where the expertise does not exist in the
collaborative group or where it would not be cost-effective to develop inhouse skills for
your project.
Sub contract services supplied by associated companies should exclude any profit
element and be charged at cost.
You should name the subcontractor (where known) and describe what the
subcontractor will be doing and where the work will be undertaken. We will look at the
size of this contribution when assessing eligibility and level of support.
6. Travel and Subsistence

You should only include reasonable costs that are justified and will be incurred
exclusively for the progression of the research project. Details and purpose for the
expenditure, including number of staff attending, must be given. In case of Air-travel,
economy class air-fare only will be supported under the programme.

International travel, strictly between India and counterpart country, may be supported
on a case to case basis, as per the applicable norms of the Government of India.

7. Other Cost:

Other Costs can be used for eligible costs which are not included in the above
sections. Each type of cost that you include in this section should be described in the
application form as to what it is, why it is eligible and so included in the costs of the
project.
Examples may include:
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Training Costs – These costs are eligible for support where they are specific to and
necessary for your project. TDB may consider support for management training
specific to your project but will not support ongoing training.

Preparation of Technical Report(s) – For example, where the main objective of your
project is the support of standards or technology transfer. You should demonstrate
how this report is above and beyond what would normally be produced through good
project management.
Market Assessment – There is some scope for support of market assessments
studies in order to more fully understand the applicability of your projects results to the
intended market and to help steer your project towards exploitable ends.
Licensing in New Technologies – Exceptionally, TDB may consider support where
it makes sense to do so, for example, to avoid “reinventing the wheel”. Where imported
technology makes up a large part of your project then it will be expected that there is
development of that technology as part of your project.
Patent filing costs for NEW IP generated by your project may only be allowable for
MSMEs, which will be decided on a case to case basis. These should not include legal
costs relating to the filing or trademark related expenditure as these are deemed to be
marketing/exploitation costs. Regulatory compliance costs are eligible if necessary to
carry out your project.
8. Project Audit, Legal and Accounting Costs

The legal costs of setting up project or the collaboration and costs associated in
conducting audits, accountant’s reports or making grant claims are ineligible.

9. Contribution in Kind
Contributions in Kind (CiK) are goods or services provided free of charge by a party
that is NOT a member of your consortium and not subject to the terms and conditions
of an Offer Letter. They can be in the form of access to facilities, supply of materials,
labour or expertise but must not include a profit element.
CiK costs must meet the usual eligibility criteria and must have been incurred and paid
by the provider between the start and end of your project. Verification is normally done
during the audit of your project through a CiK certificate provided by the contributing
organization.

Contributions of this type should be shown with their value contributing to the total
eligible costs of the receiving partner. Grant can be claimed and adjusted to the extent
of the value determined against such contributions, if goods or services under CiK are
already included in the project proposal.
10. Cash Transfers
Cash transfers are not allowable except under exceptional circumstances with prior
agreement. Where these are allowed, the transfers are cash neutral to the total eligible
costs of your project. The donating partner should show the cash value in their costs
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as a positive value. The receiving partner should show an equal negative value in their
costs.

Once your project commences, it will be necessary for the partners to invoice and
transfer cash between them in order for this to be eligible.

11. Cash Contributions

If a cash contribution is being made to your project from outside of your consortium,
this should be shown as a negative value in the Costs worksheet, thus reducing the
eligible costs for the receiving partner and reducing their grant application.

Non-Eligible Costs:
➢ Input VAT, Excise Duty;
➢ Interest charges, bad debts, profits, advertising, entertaining;
➢ Hire purchase interest and any associated service charges;
➢ Production, quality control/assurance, distribution, supply chain or selling costs
or activities;
➢ Advertising and marketing costs or activities;
➢ Entertainment and hospitality costs;
➢ Profit earned by a subsidiary or by an associate undertaking work sub-
contracted out under your project;
➢ Inflation and contingency allowances;
➢ The value of existing assets such as IPR (not developed as part of this project),
data, software programmes
➢ and other exploitable assets that any of the collaborators contribute towards
your project;
➢ Project audit or legal costs. The legal costs of setting up your project or the
collaboration and costs
➢ associated in conducting audits, accountant’s reports or making grant claims;
➢ Sick days, waiting time and non-productive time;
➢ Bonuses, awards, profit related pay, company car expenses and any
discretionary benefits to staff.
➢ Project audit fees

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