Govt launches fund for MSMEs to acquire clean manufacturing tech

The fund, under the National Manufacturing Policy, would provide financial assistance to MSMEs

Government has launched Technology Acquisition and Development Fund (TADF) to help the MSME sector acquire clean technologies and boost manufacturing.

The scheme is conceptualised to catalyse the manufacturing growth in MSME sector to contribute to the 'Make in India' initiative, Commerce and Industry Ministry said in a statement.

The fund, under the National Manufacturing Policy, would provide financial assistance to micro, small and medium enterprises (MSMEs).

Launching the scheme, Commerce and Industry Minister Nirmala Sitharaman said that it would facilitate acquisition of clean and green technologies by MSME across the sectors and thus, bridge the technological gap at an affordable cost.

Under the direct support for technology acquisition, it said proposals from the industry will be invited for reimbursement of 50 per cent of technology transfer fee or Rs 20 lakh, which ever is lower.

In in-direct support for technology acquisition via patent pool, it said financial support would be provided to acquire technology or patent from across the globe based on applications received from MSMEs.

Technology or patent will be licensed to selected firms, with a mutually agreed value and the selected companies will get a subsidy of 50 per cent of the mutually agreed value or Rs 20 lakh, it added.

"The fund will also 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 per cent of capital expenditure incurred on new plant and machinery subject to a maximum of Rs 50 lakh," it said.

Further, the scheme will incentivise introduction of environment friendly projects like construction of green buildings, implementation of waste treatment facilities and renewable energy projects.

"The scheme will facilitate resource conservation activities in industries located in NIMZ (national investment and manufacturing zones) 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," it said.

TADF is a new scheme to facilitate acquisition of clean, green and energy efficient technologies, in the form of technology, customised products, specialised services, patents, industrial design available in India or globally, by MSMEs, it added.

The scheme would be implemented through Global Innovation and Technology Alliance (GITA).