MSME funding: Five schemes for entrepreneurs for technology upgradation in the business

Micro, Small, and Medium Enterprises (MSMEs) play a vital role in the growth of indian economy. The government offers various schemes to the entrepreneurs to boost their business and grow especially by adopting new technologies.

Here are five technology upgradation schemes offered by the government.

Technology and Quality Upgradation Support to MSMEs

Generally entrepreneurs face difficulty in upgrading the technology and quality. This scheme advocates the use of Energy Efficient Technologies (EETs) in manufacturing units so as to reduce the cost of production and adopt clean development mechanism.

The scheme focuses on enhancing the competitiveness of the MSMEs through Energy Efficiency and Product Quality Certification. The present scheme also deals with the issue relating to the reduction in emission of greenhouse gas by this sector, through energy efficiency.

It also encourages MSMEs to acquire product certification and licenses from national and international bodies.

The funding support of up to 75 percent for awareness programs is provided by the government, subject to a maximum of Rs 75,000 per programme.

Design clinic for design expertise

This scheme is for increasing competitiveness of MSMEs through the adoption of design and its learnings. The government provides funding support of Rs 60,000 per seminar and 75 percent subject to a maximum of Rs 3.75 lakhs per workshop.

The government’s contribution is 75 percent for micro and 60 percent for SMEs for the project range between Rs 15 lakh and Rs 40 lakh.

Lean manufacturing competitiveness for MSMEs

The objective of this scheme is to enhance the manufacturing competitiveness of MSMEs through the application of various Lean Manufacturing (LM) techniques.

The financial assistance is provided for implementation of lean manufacturing techniques, primarily the cost of lean manufacturing consultant (80 percent by GoI and 20 percent by beneficiaries).

National manufacturing competitiveness programme

This MSME scheme aims at facilitating technology upgradation by providing 15 percent 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.

ISO 9000/ISO 14001 certification reimbursement

This scheme provides incentives to those SMEs/ancillary undertakings that have acquired ISO 9000/ISO 14001/HACCP certification. The scheme is enlarged so as to include reimbursement of expenses in the acquisition of ISO 14001 certification.