“Incubators play an important role in mentoring new businesses which start as a small or medium business. The new Companies Bill obliges companies to spend 2 percent of average net profits under Corporate Social Responsibility (CSR). I am glad to announce that the Ministry of Corporate Affairs will notify that funds provided to technology incubators located within academic institutions and approved by the Ministry of Science and Technology or Ministry of MSME will qualify as CSR expenditure,” said Union Finance Minister P. Chidambaram in the Union Budget presented on Thursday.
The proposal to involve private sector in certified, institutional incubation centres as part of corporate social responsibility is expected to benefit the institutions in Coimbatore.
Local industries can now invest and support incubation facilities in academic institutions, says president of the Indian Chamber of Commerce and Industry, Coimbatore, R.R. Balasundharam.
Another industry source here said academic institutions that have incubation facilities now get financial support from the Union Government. With the local industries spending on these facilities as part of their corporate social responsibility, more such centres can be set up and innovation efforts will get a boost.