"A substantial part of this will go for acquisition of clean technology. The fund will help in transfer of designs," MSME minister Virbhadra Singh said at an award function at New Delhi, on Friday, Sep 2.
The government has intially chalked out 10 industries including pharmaceuticals, IT hardware, auto components, defense and aero space and biotech ,which will be taken up in initial phase.The government is planning to provide up to 15% cost of purchasing plant and machinery for a project.Alternatively, interest free loan will be provide for a period of five years and which will cover 50% of the acquisition.
In the initial stage the maximum funding will be Rs 3 crore and there will be also slabs for funding which would be given for each technology acquisition and development fund proposal.
"While we provide resources for acquisition of machinery and working capital, there is no funding available for technology acquisition. Unless we create a facility like this, our industry will be left behind," said a ministry official.
MSMEs has 26 million units which provide employment to 60 million peoples in the country and also provide 40% to nations manufacturing sector.