Question : R D IN PSES

(a) whether the Government has formulated any Research and Development (R&D) policy for the Public Sector Enterprises(PSEs);

(b) if so, the details thereof;

(c) whether the Department of Public Enterprises evaluates the achievements of R & D initiatives taken by the PSEs vis-à-vis the targets laid down in the Memoranda of Understanding signed with the PSEs;

(d) if so, the details thereof including the deficiencies found during the last three years; and (

(e) the measures taken by the Government to promote R & D activities in PSEs?

THE MINISTER OF HEAVY INDUSTRY AND PUBLIC ENTERPRISES (SHRI PRAFUL PATEL)

(a)to (e) : A statement is laid on the Table of the Houses.

Statement referred to in reply to Lok Sabha Starred Question No. 189 regarding R&D in PSEs for answer on 22.08.2013

(a) For promotion of Research & Development (R&D) in CPSEs, Central Government has issued a guideline on 23.09.2011. As a result, R & D target, which is fixed annually along with other Memorandum of Understanding (MoU) targets, is a parameter of performance of the CPSEs.

(b) R&D is now a mandatory “non- financial parameter” under the MoU system with a 5% weightage attached to it. The prescribed performance indicator under R&D for CPSEs in the MoU is as under:

Performance	Category of CPSEs
Indicators for R&D	Maharatna	Miniratna–I,	Weightage	and Navratna	II and Below
Minimum Expenditure	1 % of Profit	0.50% of Profit	2.5%
on R&D as a Percentage	after Tax (PAT)	after Tax (PAT)
of Profit after Tax (PAT)
Number of R&D Projects	5	3	2.5%
Total	5.0%