The scheme will help in meeting the technology-related requirements of enterprises in the services sector.
It has a provision of 25% capital subsidy for procurement of plant and machinery and service equipment through institutional credit to theScheduled Caste - Scheduled TribeMSMEs without any sector-specific restrictions on technology up-gradation.
It will facilitate technology up-gradation to MSEs, improvement in Quality of services by MSMEs, enhancement in productivity, reduction in waste and shall promote a culture of continuous improvement.
It will also promote the innovation, digital empowerment and design interventions of MSMEs.
Credit Linked Capital Subsidy Scheme for Technology Upgradation:
It was launched in 2000.
The objective of the Scheme is to facilitate technology up-gradation in MSEs by providing an upfront capital subsidy of 15% (on institutional finance of upto Rs 1 crore availed by them) for induction of well-established and improved technology in the specified 51 sub-sectors/products approved.
In other words the major objective is to upgrade their plant & machinery with state-of-the-art technology, with or without expansion and also for new MSEs which have set up their facilities with appropriate eligible and proven technology duly approved under scheme guidelines.
Other Initiatives to Promote MSME Sector
The Ministry of Micro,Small & Medium Enterprises (M/o MSME) envisions a vibrant MSME sector by promoting growth and development of the MSME Sector, including Khadi, Village and Coir Industries.
The Micro Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to address policy issues affecting MSMEs as well as the coverage and investment ceiling of the sector.