BackCSR funds could be used to develop assistive technology
About half of some 30 technology projects listed on Swavlamban.info are short of funds
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New Delhi: A part of the mandatory corporate charity spending could be directed at the cash-starved government programmes that help develop assistive technologies for physically and mentally challenged individuals, said a top official of a government entity that works on such projects.
Under the new companies law that took effect in April 2014, firms must spend at least 2% of their average three-year net profit on corporate social responsibility (CSR) activities every year.
About half of some 30 upcoming technology projects listed on Swavlamban.info, launched by the ministry of social justice and empowerment in December, are short of funds. Swavlamban.info lists existing and upcoming products and technologies, both local and international.
The technology programmes seek to develop futuristic assistive devices for people with autism, visual, hearing and speech impairment, cerebral palsy, and locomotion and multiple disabilities.
“From lab to market, a lot of testing and verification need to be done, which requires a substantial amount of money. A lot of effort is needed to sustain these projects," said Prabhat Ranjan, executive director, Technology Information, Forecasting and Assessment Council, which is the technical partner for the portal. The council is an autonomous think-tank under the department of science and technology and works with the social justice ministry.
Ranjan has been associated with several projects to develop environment control systems that uses body, voice and brainwave sensors to help people with severe disabilities use computers and electronic devices.
Ranjan, who acknowledged that these projects get some funding from the National Trust and concessions from the social justice ministry, said that often, “the right kind of projects do not get the right kind of funding". The state-run National Trust aims to enable and empower persons with disability to live independently.
Of the ₹ 10 crore set aside for research on disability-related technology products and issues in the 12th Five Year Plan (2012-17), nothing has been spent in the first two years, according to an internal government letter of the department of empowerment of persons with disabilities, ministry of social justice & empowerment, dated 15 January.
“The deliberations are going on for an alternative way of funding. CSR funds from companies can be utilized for such activities. A lot of locked-up money can be tapped and channelized into such projects," says Ranjan. Close to 16,000 firms are expected to spend $2.5 billion (about ₹ 15,000 crore) on CSR annually in the coming years from the current $0.5 billion, according to a Boston Consultancy Group report in February.
India’s largest technology exporter Tata Consultancy Services Ltd spent 0.48% of its net profit, or ₹ 91.98 crore, on CSR in 2013-14, according to its annual report.
“As companies try to roll out their CSR spend layout, they are trying to find a best way to utilize those funds which could create a positive value for them. Now that the board level is being involved in CSR activities, they are looking at strategic implementation of funds. They are trying to create replicable models that are sustainable," said Shrikant Sinha, chief executive officer of Nasscom Foundation, a non-profit organization and the social arm of the IT industry body Nasscom. In 2015-16, potential CSR funds of ₹ 17,000-18,000 crore is expected to be available, Sinha said. However, there is little clarity on whether the contribution of private companies to such government programmes will count as CSR spending.
The government is looking at a model under which CSR funds can be made available for government projects for social purposes, said Ganesh Natarajan, chairman of Nasscom Foundation and vice-chairman and chief executive of IT services provider Zensar Technologies Ltd. “For instance, Digital Saksharta Abhiyan where government at present is spending around ₹ 90 crore and looking to mobilize ₹ 10 crore funds for the initiative from private companies," said Natarajan. “If a government research entity is doing a basic research, they can get funded through CSR funds, but if they are doing an applied research for somebody, then it may not qualify under CSR," he said.
“It is all programmatic funding—a government research and development (R&D) unit may not qualify for the funds, but if it is an R&D programme under a specific social sector, it may. Similarly, a government entity may not qualify for CSR funding, but if it is technology implementation by a government unit for social welfare, it can."
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