Tech fund for SMEs likely next year

The micro, small and medium enterprise (MSME) ministry is working on Rs 2,500 crore upgradation fund for the MSMEs which are looking to upgrade their technological skills. Credit availability has been a cause of concern for most of the MSMEs across the country.

Ministry of MSME Secretary Uday Kumar Varma maintained, a proposal has been forwarded to the Planning Commission to allocate the fund for the upgradation of MSMEs. The Rs 2,500 crore technology upgradation fund is expected to find place in the 12th Five Year Plan (2012-2017), to be unveiled next year.

Varma was here to inaugurate the three-day International Exhibition on Foundry Technology (IFEX 2011) in Chandigarh.

The technology upgradation fund is expected to facilitate those SMEs which are looking to improvise their technological skills and is likely to benefit thousands of MSMEs.

He maintained, apart from the technology upgradation fund, there were many other schemes available for the MSMEs. While the National Manufacturing Competitive Programme aimed at helping MSMEs by providing them with marketing support and building awareness on intellectual property rights, the Cluster Development Program was aimed at helping varied SMEs rise as a cluster.

Varma further said, under the Cluster development Program, the special purpose vehicle formed for the cluster would take care of the common facility centre, instead of the government as was the case earlier.

More than 200 national and international companies are participating in the exhibition. Exhibitors include those from varied spheres of raw materials, complete foundry plants, melting furnace, accessories, molding and core making, sand preparation, treatment and reclamation, casting machines and accessories, knock out and finishing, and others.