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Linking FDI to technology transferIn certain specific areas identified for attracting FDI, policy changes are necessary toinclude transfer of technology to an Indian company as a mandatory condition to allowaccess to India’s huge domestic market. It may be mentioned that the World TradeOrganization (WTO) Working Group on Trade and Transfer of Technology recommendedthat special treatment be given to developing countries for transfer of clean coaltechnology on reasonable terms and conditions and in a manner that contributes tothe long-term developmental prospects for the host developing countries.Government support for corporate R&DCertain high-cost domestic R&D efforts of Indian companies need to be supportedthrough government funding (grants and soft loan). For demonstration projects, acollaborative approach involving the developer, the user and the government withappropriate equity participation could also be considered. The Government of the UnitedStates extends 50 per cent funding on demonstration projects based on advancedultra-supercritical technology.4. A framework for the power sector R&DGovernment needs to fund R&D programmes in the power sector through variousschemes such as NPP and RSoP. Some of the funding can be in collaborative modewith participation from central PSUs, the industry, academic institutes and utilities.CPRI, NTPC, NHPC, SJVN Limited, POWERGRID, Discoms, BHEL, laboratories ofthe Council of Scientific and Industrial Research (CSIR), IITs and NIITs could executethe identified projects, with coordination and management by CEA and CPRI on behalfof MoP. The financial requirements to execute the projects outlined through NPP andRSoP amount Rs 15 billion (around US$295 million). The proposed funding requirementis given in Table 2-6.Table 2-6: Government funding support for power sector R&DSl. No. Thrust area Proposed budget(Rs million)1 Generation: thermal, hydro, renewables anddistributed generation 4,0002 Transmission 6,0003 Distribution 1,5004 Energy & environment 5005 Centres of excellence: (1) energy storage devices;(2) high-temperature superconducting technology inpower sector; (3) power electronics; and (4) smartgrid technologies 1,0006 Power Academy 2,000Total 15,000Half of the Rs 15 billion proposed for R&D needs to come by way of direct governmentgrant and the balance raised through participation from central PSUs, utilities and the69