INTRODUCTION

Quality and Technology Up gradation have emerged as the two important elements for enhancing competitiveness of any manufacturing industry. The large industries have both adequate information about the global markets and access to funds, which enable them to implement strategies for continuous technology and quality up gradation. On the other hand, MSMEs, with limited information and access to funds, typically think short term. They tend to minimize capital investment with the objective of keeping the cost low. This approach has brought many Indian MSME suppliers to the lower end of the global value chain and ultimately made them uncompetitive as the suppliers of stand-alone products. The present scheme aims to address the quality and technology aspects of manufacturing in MSMEs.

Objectives of the Scheme

The following are the various objectives of the scheme:

• To provide financial help in the form of subsidy to the extent of 25% of the total project cost for the implementation of Energy Efficient Technology (EET). The maximum amount of subsidy is Rs. 10 Lakhs for the project that holds the cost of Rs. 40 Lakhs. This activity is implemented through various nodal banks.
• SIDBI is the Nodal Agency under the scheme. Besides, Canara Bank, Bank of Baroda, Punjab National Bank, Bank of India and State Bank of India have also been included as Nodal Banks.
• To provide subsidy to enterprises to the extent of 75% of the actual expenditure incurred by them for obtaining the Product Certification Licenses. The maximum GoI assistance allowed per MSME unit is Rs. 1.5 lakhs for obtaining licenses/marking to national standards and Rs. 2 lakhs for the obtaining international Certification.
• To sensitize the MSME Sector through conducting Awareness Programmes to adopt Energy-Efficient Technologies and acquire Product Certification/Licenses from National/International Bodies.