India-UK Collaborative R&D for Industrial Sustainability

Status  Open

Opening Date   31-May-2023

Closing Date  06-september-2023 20:30 Hrs.

 

EXPIRED

For finding a partner, register at https://uk-india-bilateral-grant-funding.b2match.io/invitation/pnuS33g and for taking part in the matchmaking sessions scheduled on Tuesday 20 – Thursday 22 June 2023 via Virtual mode, visit https://events.newable.co.uk/events/1034/india-uk-industrial-collaborations-for-sustainability

1. Summary

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

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) & £300,000 (UK).
  • start by 1st March 2024
  • end by 31st August 2025
  • last between 6 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 organising, 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 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.

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.

  • 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:

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)

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
  • a clear, evidence-based plan to deliver significant economic impact, return on investment (ROI) and growth through commercialisation, as soon as possible after project completion
  • clear potential to significantly benefit the UK or India economy or national productivity
  • the benefits and value of participants from the countries working together
  • a clear definition of where intellectual property (IP) can be used and shared between the participants and countries
  • a clear route to exploitation/commercialization

Projects must focus on one or both of the following themes.

(i) Sustainable materials and manufacturing

Projects must focus on one or more of these areas:

  • enabling technologies for sustainability, including digital solutions, sensors and controls, bio-based feedstocks, waste recycling and value-added processes for waste streams
  • new supply chain and business models for the manufacturing, materials or foundation industries (glass, paper, cements, ceramics, chemicals and metals), including, but not limited to, the move to a circular economy, industrial symbiosis, co-location and servitisation
  • new and efficient production processes for the manufacturing, materials or foundation industries, including, but not limited to, transformative low temperature processes, waste heat capture and recovery systems, planning optimisation
  • smart design for resource efficiency and through-life value using effective design methods
  • next generation materials involving the discovery, scaling, processing and adoption of advanced and sustainable materials
  • other sustainability improvements for the manufacturing, materials or foundation industries

(ii) Power electronics, machines and drives

Projects must focus on one or more of these areas:

  • power electronic semiconductor fabrication or device packaging, including innovations in Gallium Nitride and Silicon Carbide
  • power conversion innovations including invertors and convertors for any application, such as electric vehicles or energy systems
  • electric machine design innovations, including design for manufacture, for any application
  • electric machine control innovations, including design and manufacturing
  • magnet manufacturing and end of life recycling solutions
  • electric vehicle (EV) chargers
  • 2 and 3 wheeler electric vehicle powertrains

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 organisation/academic institution.
  • Indian R&D organisation/academic institution share can range from INR 25 lakhs minimum to INR 50 lakhs maximum.
  • 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:

  • Equipment 40%
  • Manpower 30%
  • Consumables 20%
  • 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, the Indian Industry Partners shall pay royalty payments to TDB at the rate of 2-5% annually on the Net Sales of the product, developed with TDB’s fund assistance, commencing from the date of start of commercialization.

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 non-civilian applications
  • are not in scope
  • do not meet Innovate UK’s eligibility criteria
  • do not submit all mandatory documentation

7. Key Documents Required from Indian Applicants

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

  • Covering letter
  • Common Proposal Form
  • Presentation for Evaluation Committee Meeting – add photographs in PPT
  • Memorandum of Understanding (MoU) between All Consortium Partners. This MoU should basically cover the following points:

    • Percentage sharing of IP Rights on new product/process/knowledge being developed/ created/invented during this collaborative R&D Process.
    • Background IP’s of the partnership (If Any) to be used for this project scope.
    • Probable/possible market for the new product/process/knowledge & rights to manufacture/License in the respective market for the period of Time (time span)
    • % sharing of Royalty
    • Dispute and arbitration clause
    • Exclusivity and Non-Exclusivity rights if any
    • Duration of this agreement in force
  • Registration Certificate of all project partners, including Academia/R&D Labs, issued by competent authority
  • 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.
  • 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.
  • 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.)
  • Self-Declaration of Applicant on Company letterhead, signed by MD/CEO/Company Secretary, as all Statutory Norms are complied by the Applicant till date.
  • Share Holding Patter of the Company (highlighting the Foreign Investment, if any)
  • Copy of all relevant Certification like CMMI, ISO, etc. if any.

8. Contact Information

India

Dr. Jyotsana Dalal, Project Coordinator
Technology Development Board (TDB)
Website – www.tdb.gov.in
Email: indo-uk@tdb.gov.in

UK

Innovate UK
Website – https://www.ukri.org/councils/innovate-uk/
Email: support@iuk.ukri.org

9. Download Documents

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.

  • Sustainable Materials and Manufacturing
  • Power Electronics, Machines and Drives (PEMD)

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

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
  • 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:

  • external parties
  • customers
  • others in the supply chain
  • broader industry
  • 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

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

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:

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

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: 
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.

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 Costs
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:
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 organisation.

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 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