New Delhi: The government on Thursday said companies' money spent on technology incubators, meant for mentoring new businesses in academic institutions, will be considered as Corporate Social Responsibility (CSR) activity.
Funding by companies for technology incubators located in academic institutions and subject to other conditions would be eligible for CSR.
Unveiling the Union Budget for 2013-14, Finance Minister P Chidambaram said incubators play an important role in mentoring new businesses which start as a small or medium business.
"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," Chidambaram said.
The new Companies Bill, which is awaiting Rajya Sabha approval, require companies to spend two percent of average net profits towards CSR activities.
Corporate Affairs Minister Sachin Pilot welcomed the move to bring corporate funding for technology incubators under CSR is a good one.