Rule 233 — GFR

Rule 233 Funding of Sponsored Projects or Schemes.

(i) Ministries or Departments of Government sponsor projects or schemes to be undertaken by Universities, Indian Institute of Technology and other similar Autonomous Organisations such as ICAR, CSIR, ICMR etc., the results from which are expected to be in national interest. Normally the entire expenditure on such projects or schemes including capital expenditure, is funded by the Ministry or Department. The funds released for such projects or schemes in one or more installments are not treated as Grants-in-aid in the books of the implementing agency. Apart from the requirement of submission of technical and financial reports on completion of the project or scheme, a stipulation should be made in such cases that the ownership in the physical and intellectual assets created or acquired out of such funds shall vest in the sponsor. While the Project or Scheme is ongoing, the recipients should not treat such assets as their own assets in their Books of Accounts but should disclose their holding and using such assists in the Notes to Accounts specifically.

(ii) On completion of the Projects or Schemes and the receipt of technical and financial reports, the Ministries/Departments should decide and communicate to the implementing agencies whether the assets should be returned, sold or retained by them. [

Note: In relaxation of the extant provisions of the rule, Scientific Departments are allowed to extend the provisions of Rule 233(i)&

(ii) to private sector / NGOs who are commissioned to execute projects or schemes.]1 If the assets are to be sold, the proceeds therefrom should be credited to the account of the sponsoring Department / Organisation. If the assets are allowed to be retained by the Institution/ Organisation, the implementing agency should include the assets at the book value in their own accounts.