New items to be eligible for technology upgradation subsidy


New items to be eligible for technology upgradation subsidy

New items to be eligible for technology upgradation subsidy

The government plans to include new technologies and machinery in the list of sectors eligible for subsidy for adoption of upgraded technology.

In this context, the office of the Office of the Development Commissioner MSME has called for some inputs for inclusion of sub-sectors, technologies, machineries, etc in food and allied sectors.

The existing guidelines for Credit Linked Capital Subsidy Scheme (CLCCS) framed in 2006 currently cover more than 1500 technologies/machineries under 51 sub-sectors eligible for subsidy.

However, since more of the technologies were enlisted eight years ago, there is a need to revise the entire list of sub-sectors, technologies/machineries, costs, etc, so as to cover the latest and upgraded versions of technologies/machineries enabling the industries to become domestic and globally competitive.

Significantly, while recommending new technologies/machines, various parameters need to be taken into consideration such as improved productivity, improved product quality, environmental conditions, anti-pollution measures, energy conservation, etc.

“Each change should be supported with proper justification as far as possible.  The technologies/machine suggested should be generic in nature and not manufacturer specific.  It is intended to include maximum number of technologies/machines indigenised as well as imported,” DC MSME said.

Deadline for sending recommendations is July-5 in a prescribed format which includes requisite information such as: number of units using the proposed technology and number of people employed by these units; likely demand of the product to be manufactured through the application of new technology; percentage of SSI units as a proposition of the total units in the industry engaged in the manufacturing process.

The format should also specify relative cost of existing as well as new technology; impact of adoption of new technology on energy consumption/savings; quality improvement in the product and likely benefits accruing to the consumers through the application of new technology; and details of manufacturers/fabricators of the suggested machines and equipment.

In addition, DC (MSME) requires specific information such as – item for consideration; machines and equipment commonly used; suggested machines and equipment of upgraded version recommended for assistance under CLCSS as per the definition of technology upgradation under the scheme; approximate cost in rupees; and relative benefits of installing each upgraded version of machines and equipment.

CLCSS has aimed at facilitating technology upgradation of micro and small enterprises (MSEs) by providing 15 per cent capital subsidy (limited to maximum Rs 15 lakhs) for purchase of Plant and Machinery.  Maximum limit of eligible loan for calculation of subsidy under the scheme has been Rs 100 lakhs.

Sectors such as biotech industry, common effluent treatment plant, corrugated boxes, pharmaceuticals, dyes, plastic moulding, rubber processing and auto parts among many others have been eligible for subsidy under the scheme.

About Fismeadmin

Federation of Indian Micro and Small & Medium Enterprises (FISME) B - 4 / 161, Safdarjung Enclave, New Delhi-110029 INDIA

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