Credit Linked Capital Subsidy for Technology UpgradationMSME
Technology upgradation would ordinarily mean induction of state-of-the-art or near state-of-the art technology. In the varying mosaic of technology covering more than 7,500 products in Indian small scale sector, technology upgradation would mean a significant step up from the present technology level to a substantially higher one involving improved productivity, and/or improvement in quality of products and/or improved environmental conditions including work environment for the unit. It includes installation of improved packaging techniques as well as anti-pollution measures and energy
conservation machinery. Further, units in need of introducing facilities for in-house testing and online quality control would qualify for assistance, as the same are a case of technology up-gradation.
Nature of Assistance
The revised scheme aims at facilitating technology upgradation by providing 15% upfront capital subsidy to MSEs, including tiny, khadi, village and coir industrial units, on institutional finance availed by them for induction of well established and improved technologies in specified sub-sectors/products approved under the scheme.
- Ceiling on loans under the scheme has been raised from Rs.40 lakh to Rs.1 crore
- Rate of subsidy has been enhanced from 12% to 15%.
- Admissible capital subsidy is calculated with reference to purchase price of plant and machinery, instead of term loan disbursed to the beneficiary unit.
Eligible beneficiaries include sole proprietorships, partnerships, co-operative societies, and private and public limited companies in the MSE sector. Priority shall be given to women entrepreneurs.
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