R&D projects may be taken up by Universities, research institutions, R&D laboratories and industry, individually or as a consortium. As far as possible, R&D projects should be taken with industry as end-users to ensure that they are involved right from the conception stage of the project. Such projects should clearly quantify outputs, that should be challenging and bench-marked to pre-identified aims.

A profit making industry registered with Department of Scientific & Industrial Research for in-house R&D may submit an R&D project in the prescribed form, to the Ministry for support. The industry is expected to share50% of the cost of the project and Ministry supports to the extent of remaining 50%.

A consortium of industry, academic institutions, research laboratory and R&D institution etc., may be formed to undertake a R&D project. Clear role and tasks of each member of the consortium will have to be clearly defined. Consortium members will also be required to share at least 50% of the cost of the project. MNRE funds will be released to the implementing institution in the consortium selected by consortium members. Implementing institution will be responsible for the entire expenditure and for other terms and conditions of the project.

An industry may join hands with the Ministry to entrust an R&D project to an R&D institution/research laboratory or an academic institution. Funds in this case will be released to the concerned implementing institution which will also be responsible for the entire expenditure and other terms and conditions MNRE support up to 50% of the cost of the project will be available.

Financial assistance for RD&D projects that involve partnership with industry should normally be restricted to 50% of the project cost. However, any proposal from Universities, Government research institutions etc. Ministry may provide upto100% funding, depending on project priority.

In all the above three models, industry/institution contributing 50/50% of the cost will have the right on commercialization of the technical know-how.

Guidelines for IPR sharing is given in the R&D Policy order.