The Office of the Development Commissioner (MSME) will subsidise MSMEs with 75 per cent of the expenditure involved in registration with the Research, Development and Standardisation Organisation (RDSO) as a supplier to Railways.
By a recent order, office of the DC (MSME) has allowed ‘product certification reimbursement towards acquiring RDSO certification in case MSME units with a caveat that the applicant MSMEs have to market at least 40 per cent of their product to the customers other than Railway and this must be mentioned in the balance sheet/certified by their auditor’.
The facility will be available under the technology and quality upgradation support to MSMEs (TEQUP) scheme of the DC’s office under which MSME manufacturing units are already provided subsidy to the extent of 75 per cent the actual expenditure, towards licensing of product to national/international standards subject to government of India assistance to the extent of Rs 1.5 lacs for national and Rs 2.0 lacs for acquiring international product certification respectively as per the existing TEQUP guidelines.
The amendment to the guidelines will provide great relief to the entrepreneurs who are venturing to supply to railways, as per the rigorous standards of RDSO. FISME has taken up the issue of subsidisation of expenditure related to RDSO registration, in right earnest, with the DC, MSME’s office as certification to other Indian Standards are not sufficient for supply to Railways and the MSMEs are to incur considerable expenditure towards testing charges, registration fees etc. for registration with RDSO. While government is subsidising certification to BIS standards, there u is no reason why RDSO charges will also not be reimbursed – FISME raised in its representation to government.
Another important feature of the TEQUP scheme is assistance to MSMEs in adopting energy efficient technologies. As per the guidelines of the scheme, to any MSME, Government of India will provide financial support to the extent of 25 per cent of the project cost for implementation of energy efficient technologies subject to maximum of Rs.10 lakh per project. The balance amount is to be funded through loan from Banks/Financial Institutions.
The scheme will facilitate implementation of ‘Zero Defect – Zero Effect’ programme of the Government, encouraging zero defect by certifying products to BIS, RDSO and other international standards and facilitating zero effect by subsidising cost of energy efficient technologies, which minimises cost of energy and in turn also reduce environmental pollutions.