Technology Acquisition & Development Fund to boost Manufacturing MSMEs

Technology Acquisition & Development Fund to boost Manufacturing MSMEs

Catalysing the manufacturing growth in MSME sector by bridging the technological gap at affordable price, Minister of State for Commerce & Industry (I/C), Nirmala Sitharaman, has launched the Technology Acquisition and Development Fund (TADF) under National Manufacturing Policy being implemented by Department of Industrial Policy & Promotion(DIPP).

TADF is a new scheme to facilitate acquisition of Clean, Green & Energy Efficient Technologies, in form of Technology / Customised Products / Specialised Services / Patents / Industrial Design available in the market available in India or globally, by Micro, Small & Medium Enterprises (MSMEs).

While launching this Scheme on Wednesday, the Commerce Minister hoped that the Scheme would facilitate acquisition of clean & green technologies by micro, small and medium units across the sectors and thus, bridge the technological gap at an affordable cost.

The Scheme is conceptualised to catalyse the manufacturing growth in MSME sector to contribute to the national focus of “Make in India”, Commerce Ministry said in a release today.

Under the Scheme which would be implemented through Global Innovation and Technology Alliance (GITA), a joint venture company, support to MSME units is envisaged by the following:

I. Direct Support for Technology Acquisition- Proposals from Indian industry will be invited for reimbursement of 50% of technology transfer fee or Rs. 20 lakhs, whichever is lower,

II. In-direct Support for Technology Acquisition through Patent Pool- Financial support will be provided in acquiring of technology/Patent from across the Globe based on applications received from MSMEs. Technology/Patent will be licensed to selected companies, with a mutually agreed value and the selected companies will get a subsidy of 50% of the mutually agreed value or Rs. 20 lakhs,

III. Technology / Equipment Manufacturing Subsidies: The fund will support, via subsidies, manufacturing of equipment / machines / devices for controlling pollution, reducing energy consumption and water conservation. The manufacturing units will be provided with a subsidy of up to 10% of capital expenditure incurred on new plant & machinery subject to a maximum of Rs. 50 lakhs.

IV. Green Manufacturing – Incentive Scheme: The scheme will facilitate resource conservation activities in industries located in NIMZ through the introduction of incentive/subsidy schemes for energy/ environmental/ water audits, construction of green buildings, implementation of waste treatment facilities and implementation of renewable energy projects through financial support under the TADF.

The guidelines for the Scheme envisage providing assistance to units in MSME sector owned by Indian residents.