Open to govt funding if there are no strings attached: M R Madhavan

Interview with Co-founder and president, PRS Legislative Research

PRS Legislative Research has been in the news over funding issues, with the home ministry denying the non-profit entity  clearance for foreign funds. PRS co-founder and president M R Madhavan tells Kavita Chowdhury the organisation has been unfairly targeted. Edited excerpts:

PRS has run into trouble with the government over foreign funding. What was the issue?

Yes, we did have trouble. As of now, we are sustained by 100 per cent domestic funding. In fact, the foreign funding issue is about two-year old. When we started in 2005, we were incubated by the Centre for Policy Research. We began with grants of about $500,000 from Ford Foundation and about $800,000 from Google Foundation, which lasted us till 2011. Since we needed funding afresh, the Ford Foundation and Omidyar Network came forward with $1.5 million, spread through three years.

As we were starting as an independent entity, we registered ourselves as a Section 25 company in March 2011. In July, we applied for the required Foreign Contribution Regulation Act (FCRA) clearance for foreign funding. About a year later, we were refused. We moved for reconsideration of the decision and, in November 2012, were again denied FCRA approval.

On what grounds were you denied foreign funding?

We received a one-line letter from an under-secretary in the ministry of home affairs. It said, “Denied in public interest.”  

Do you think PRS has been unfairly targeted?

It is definitely an unfair refusal. Look at our records. Have any of our actions raised concern from a public-interest point of view?

Since PRS is in the field of legislative research, often assisting members of Parliament (MPs) and legislative assemblies (MLAs), the apprehension is allowing foreign funding might give scope to policy-making being influenced by foreign donors.

We have ensured for all our projects, we undertake diversified sources of funding so that there is no one-to-one relationship between a funder and any particular piece of research. Also, we have never provided a platform to funders to meet MLAs and MPs. We have been careful about putting checks in place so that there is no scope of policy-making being influenced. We give our analysis on legislation, but never recommend policies. We have put adequate safeguards so that nobody can influence what we are doing.

Currently, how are you managing funds?

After we were denied funding, the board of directors met and decided to raise funds domestically. Several Indian philanthropists, both individuals and organisations, are supporting us. In 2012-13, our budget was about Rs 3 crore; this year, it is about Rs 4.5 crore. Now, we are 100 per cent domestically-funded.

Is PRS facing a resource crunch?

There is a resource crunch. Two years ago, we were on the verge of a shut-down. But now, we have enough to survive and fund-raising is a continuous all-year-round activity.

The glitch with the government notwithstanding, are you open to government funding?

We are open to government funding if it doesn’t affect our independence in research and if there are no strings attached.

Have you ruled out foreign funding in the future?

As of now, we are undecided. We had the option of going to court when we were denied approval. But I thought it would be wiser to focus my limited resources on work rather then spending time in a legal battle because as we all know, it could take years in court.

THE STORY SO FOR

* 2005: PRS set up; incubated in Centre for Policy Research

* 2007: Bags funding from Ford Foundation (total $200,000) & Google Foundation (total $800,000)

* 2008- 201: Funds used in three years

* Mar 2011: PRS registered as a Section 25 company (registered as Institute for Policy Research Studies)

* Jul 2011: Applied for FCRA approval for fresh grant from Ford Foundation, Omidyar Network (of eBay founder Pierre Omidyar)

* Jun 2012: Ministry of home affairs denies FCRA clearance

* Nov 2012:  Applies for reconsideration to MHA which is again denied

* 2012: Start raising funds from domestic investors, including Ajay Piramal, Amit Chandra, Avantha Foundation, India Value Fund Advisors, Jamnalal Bajaj Foundation, Mahindra & Mahindra, Meher Pudumjee, Puneet Dalmia, Rohini Nilekani and Tata Sons