Objectives of the scheme is to encourage Small Scale Units to upgrade the level of technology or to use modern technology to increase productivity/increase quality of product by providing credit capital subsidy.
| Scope of the scheme. |
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To begin with, the scheme would cover the following products/sub-sectors in the SSI.
Rubber and latex based
Clay based
Rubber wood based
Silica based
Handicrafts
Bio-technology
Rice & paddy
Chemical based
Ayurvedic products
Information technology (Software development)
Plastic based
Agro based
Waste recycling and upgradation
Oil based industries
Cash crops (coconut, spices, oleoresins etc.)
Wood based industries
Textile & garments
Electrical industries
Food processing industries
As the scheme progresses, the above list of products or sub-sectors will be expanded with the approval of the Monitoring and Technology Approval Board (MTAB) constituted under this scheme.
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| Type of units to come under the scheme. |
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1.
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Existing SSI units registered with the Directorate of Industries & Commerce which upgrade with State-of-the-art technology with or without expansion.
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2.
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New SSI units which are provisionally registered with the Directorate of Industries & Commerce to set up with proven technology approved by MTAB.
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| Eligible institutions. |
| Nationalised banks, scheduled banks, KFC and Co-operative banks. |
| Definitions of technology upgradation |
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Technology upgradation would ordinarily mean the induction of the state-of-the-art or near-state-of-the-art technology. Technology upgradation would mean to change the present level of technology to a higher one which results in improved productivity or/and improvement in the quality of the product or/and reduction in cost of production and/or improved environmental conditions including work environment of the units. It would also include adoption of improved packaging technologies, pollution reduction measures and energy conservation techniques.
If the new unit set up with the modern technology, create improvement in productivity or/and in product quality or/and in reduction of cost of production, and/or environmental conditions/work environment the existing technology it can also be treated as technology upgradation.
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| Nodal agency. |
| Directorate of Industries & Commerce will act as the Nodal agency. |
| Terms & Conditions |
| Subsidy @ 12% of loan amount sanctioned and disbursed by FI will be given. |
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1.
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Cost of know-how, process technology, design and drawings.
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2.
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Setting up of in-house R&D facility for effective absorption and adoption of the acquired technology, carrying out further improvement and generation of know-why capabilities.
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3.
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Plant and machinery and equipment for upgradation
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4.
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Machinery and equipment for package improvement.
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5.
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Machinery and equipment for energy conservation.
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6.
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Machinery and equipment for pollution control/pollution reduction.
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Capital subsidy @ 12% of the loan amount sanctioned and disbursed by F.I. will be given. But maximum eligibility would be 12 % of the loan amount indicated below:
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S.No.
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Existing investment limit
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Maximum ceiling of loan eligible for support
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1.
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SSI units with investment in plant and machinery less than 10 lakhs
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Rs.9 lakhs
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2.
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SSI units with investment in plant and machinery between 10 lakhs – 25 lakhs
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Rs.22 lakhs
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3.
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SSI units with investment in plant and machinery less than 50 lakhs
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Rs.45 lakhs
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4.
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SSI units with investment in plant and machinery above 50 lakhs
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Rs.90 lakhs
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The GM is competent to sanction subsidy up to Rs.1.50 lakhs. Over and above Rs.1.50 lakhs will be sanctioned by DI&C. If the unit has availed any other subsidy for the purpose from any other institution, the remaining amount will be eligible under the scheme.
The eligible subsidy would be calculated on the actual loan amount or maximum ceiling on loan eligible for subsidy whichever is less.
Monitoring approval of scheme.
Technology will be approved and monitored by a Monitoring and Technology Approval Board (MTAB).
Principal Secretary – Industries will be the Chairman of the Board and DI&C will be Convenor. GM, Lead Bank, Principal Secretary-Finance or his nominee, Director-SISI will be the members of the Board. Technical experts in the relevant field will be co-opted to the Board by the Convenor.
Technology, which is approved by the MTAB, will be considered as proven technology. List of such proven technology will be issued by MTAB from time to time. MTAB will have power to delete the technology from the list at any time.
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| Other terms & conditions. |
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1.
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The units shall apply subsidy under the scheme only after disbursing loan by FI.
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2.
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Application in the prescribed form shall be submitted to GM, DIC with due recommendation of FI.
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3.
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The recommendation of the FI shall be in the prescribed format.
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4.
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Project report approved by the Financial Institution submitted with application.
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5.
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In no case subsidy shall be granted to the unit, if the technology used is not in the approved list.
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6.
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If the technology used is not in the approved list, but a new one, such case shall be placed before the MTAB for approval and subsidy shall be granted after getting the approval of MTAB.
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7.
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All the necessary documents shall be appended with the application.
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8.
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In no case application preferred after 3 months from the date of availing last installment of term loan from FI shall be accepted.
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9.
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The officer while accepting the application form should examine whether all necessary details have been furnished. If any information is missing, the same should be intimated to the applicant across the table or by return.
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10.
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Application shall be disposed within 3 months from the date of receipt of application.
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11.
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The unit has to execute an agreement with Industries Department before availing subsidy in the prescribed form.
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12
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In case if the unit fail to set up / start the unit with approved technology within 6 months, subsidy availed shall be remitted back to Government with 14 % interest by the unit.
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13.
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GM, DIC will conduct periodical inspection in the unit after disbursing subsidy and will furnish a report to DI&C every month.
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Application for technology development fund
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1.
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Name and address of the applicant
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2.
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Constitution of the unit (score out inappropriate entries) (Enclose self attested copy of partnership deed/ articles and memorandum of association as applicable)
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Proprietorship / Partnership /Pvt. Ltd. Company
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3.
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Particulars of Promoters
Name & permanent address :
Present address |
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4.
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Name of person authorized to sign on behalf of the applicant unit with self attested copy of enabling solution
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5.
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SSI Registration No.
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6.
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Total project cost
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7.
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Items manufactured/to be manufactured
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8.
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Subsidy previously availed
a.Under Investment subsidy
b.Under technology upgradation scheme
Any other source |
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9.
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Terms loan sanctioned and disbursed for
a) Acquiring cost of know-how, process, Technology, design and drawings
b) Setting up of in-house R&D facility for effective absorption and adoption of the acquired the acquired technology, carrying out further improvement and generation of know-why capabilities
c) Acquiring plant & machinery and equipment for upgradation
d) Acquiring machinery and equipment for package improvement
e) Acquiring machinery and equipment for energy conservation
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10.
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Term loan sanctioned and disbursed
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11.
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12 % of term loan sanctioned & disbursed
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12.
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Eligible subsidy
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13.
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Total working capital requirement
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14.
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Working capital sanctioned
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15.
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Name of lending institution
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I/We________________________________ on behalf of M/s________ ____________ ___________ bearing SSI Regn.No.______________________________ hereby apply for subsidy under Technology Development Fund Scheme of Rs._______________ for upgrading the technology of the unit.
I/We have read all the conditions of the subsidy under Technology Development Fund Scheme and undertake to abide by all the provisions therein. I/We also certify that all the above facts are true to the best of my/our knowledge and belief.
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Date:
Signature of the applicant for and on behalf of the applicant unit.
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| # extracted from GO(Ms) No.2/2003/ID dated 2-1-2003. |
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