What You Can Claim as Eligible Costs for the Project?
This document is intended for
use with the RFP/Competition Guidance Document. It covers the following:
There are ranges of costs that can be supported as your eligible project
costs.
The estimates of the costs that you use to complete the project cost must be the total costs for the project and will include costs for all
activities and all participants that are involved in your section (part) of the project.
Please Note: Any revenue generation activities cannot be
included as part of project costs. Only Research & Development related activities can be included as part of project costs.
Eligible Costs
For a cost within your project to be eligible for funding it must:
GITA pays your grant based on audited actual eligible costs. These costs must be incurred and paid between your project start and end dates.
1. Labour Cost:
You may claim the labour costs of all individuals working directly on your project. You need to list the total man-days worked by all personnel working directly on your project and briefly describe their role.
Your eligible labour costs will be on the basis of salary amounts actually incurred and paid. You therefore cannot include any form of in-kind/goodwill contribution by staff members or costs relating to profit related pay, dividends, shares, share options, royalties or similar remuneration methods.
The total number of working days per year for the organisation is based on full time working days per year less standard holiday allowance. Sick days, waiting time, training days and non-productive time are not eligible as part of the calculation.
Project Management cost:
The costs of project management by an Indian Project Lead (IPL) on behalf of the Indian consortium (IPL and collaborating R&D organisation/academic institution are eligible and should be included within your Labour calculation. In cases where your project management is sub-contracted, a strong case should be made for the necessity and benefits of this approach.
2. Overheads
In every project, there are always some overheads. . These overheads, however, will be determined by the Project Evaluation Committee (PEC), on a case to case basis, at a flat rate (percentage) to the total project cost.
While determining the overhead flat rate (percentage), PEC will take into consideration the following:
3. Materials Consumed
The costs of materials to be consumed directly on your project are eligible costs, providing that they are not already included in the overheads and purchased from third parties. If material has a residual/resale value at the end of your project, costs should be reduced accordingly.
If you are using materials supplied by associated companies or sub contracted from other consortium members then you are required to exclude the profit element of the value placed on that material - the materials should be charged at cost.
Software that you have purchased specifically for use during your project can be included in materials.
However, if you already own software which will be used in the project, or it is provided for usage within your consortium by a consortium member, only additional costs incurred & paid between the start and end of your project will be eligible. Examples of costs that may be eligible are those related to the preparation of disks, manuals, installation, training or customisation. Costs should be split between their component parts and allocated to the appropriate cost category.
4. Capital Usage
Capital usage refers to an asset utilised by your planned project, which has a useful life of more than one year, is stand-alone, distinct and moveable.
You should provide details of capital equipment and tools to be bought for your project.
5. Sub-contracts, Consultancy Fees (including Fees for Trial and Testing)
Sub Contract costs relate to work carried out by third party organisations that are not part of your project or your collaborative group. You may sub contract work that is essential to the success of your project where the expertise does not exist in the collaborative group or where it would not be cost-effective to develop in-house skills for your project.
Sub contract services supplied by associated companies should exclude any profit element and be charged at cost.
You should name the subcontractor (where known) and describe what the subcontractor will be doing and where the work will be undertaken. We will look at the size of this contribution when assessing eligibility and level of support.
6. Travel and Subsistence
You should only include reasonable costs that are justified and will be incurred exclusively for the progression of the research project. Details and purpose for the expenditure, including number of staff attending, must be given. In case of Air-travel, economy class air-fare only will be supported under the programme.
International travel, strictly between India and counterpart country,may be supported on a case to case basis, as per the applicable norms of the Government of India.
7. Other Costs
Other Costs can be used for eligible costs which are not included in the above sections. Each type of cost that you include in this section should be described in the application form as to what it is, why it is eligible and so included in the costs of the project.
Examples may include:
Training Costs– These costs are eligible for support where they are specific to and necessary for your project. GITA may consider support for management training specific to your project but will not support ongoing training.
Preparation of Technical Report(s)– For example, where the main objective of your project is the support of standards or technology transfer. You should demonstrate how this report is above and beyond what would normally be produced through good project management.
Market Assessment– There is some scope for support of market assessments studies in order to more fully understand the applicability of your projects results to the intended market and to help steer your project towards exploitable ends.
Licensing in New Technologies – Exceptionally, GITA may consider support where it makes sense to do so, for example, to avoid “reinventing the wheel”. Where imported technology makes up a large part of your project then it will be expected that there is development of that technology as part of your project.
Patent filing costs for NEW IP generated by your project may only be allowable for MSMEs, which will be decided on a case to case basis. These should not include legal costs relating to the filing or trademark related expenditure as these are deemed to be marketing/exploitation costs. Regulatory compliance costs are eligible if necessary to carry out your project.
8. Project Audit, Legal and Accounting Costs
The legal costs of setting up project or the collaboration and costs associated in conducting audits, accountant’s reports or making grant claims are ineligible.
9. Contribution in Kind
Contributions in Kind (CiK) are goods or services provided free of charge by a party that is NOT a member of your consortium and not subject to the terms and conditions of an Offer Letter. They can be in the form of access to facilities, supply of materials, labour or expertise but must not include a profit element.
CiK costs must meet the usual eligibility criteria and must have been incurred and paid by the provider between the start and end of your project. Verification is normally done during the audit of your project through a CiK certificate provided by the contributing organisation.
Contributions of this type should be shown with their value contributing to the total eligible costs of the receiving partner. Grant can be claimed and adjusted to the extent of the value determined against such contributions, if goods or services under CiK are already included in the project proposal.
10. Cash Transfers
Cash transfers are not allowable except under exceptional circumstances with prior agreement. Where these are allowed, the transfers are cash neutral to the total eligible costs of your project. The donating partner should show the cash value in their costs as a positive value. The receiving partner should show an equal negative value in their costs.
Once your project commences, it will be necessary for the partners to invoice and transfer cash between them in order for this to be eligible.
11. Cash Contributions
If a cash contribution is being made to your project from outside of your consortium, this should be shown as a negative value in the Costs worksheet, thus reducing the eligible costs for the receiving partner and reducing their grant application.
Non-Eligible Costs:
For further information/clarification, please contact Ms. Deepanwita Mukherjee at deepanwita.mukherjee@gita.org.in