Technology & Quality Upgradation Support to Micro, Small, Medium Enterprises is a very useful scheme for the small business manufacturing entrepreneurs.
Quality and technology up gradation are the two most important elements for enhancing the competitiveness of the manufacturing industry. Generally, small entrepreneurs face a huge difficulty in concentrating in technology and quality up gradation. Because these two sectors are cash intensive. And here, this scheme is hugely beneficial for them.
The large industries have both adequate information about the global markets and access to funds. It enables them to implement strategies for continuous technology and quality up gradation.
On the other hand, MSMEs, with limited information and access to funds, typically think short term. They tend to minimize capital investment with the objective of keeping the cost low.
Due to this, many Indian MSME suppliers to the lower end of the global value chain. And it ultimately makes them uncompetitive as the suppliers of stand-alone products. This scheme aims to address the quality and technology aspects of manufacturing in MSMEs. Additionally, this scheme encourages and supports energy efficiency by the Micro, Small & Medium Enterprises.
This scheme focuses the two important aspects, namely, enhancing the competitiveness of the MSME sector through Energy Efficiency and Product Quality Certification. The present scheme also deals with the issue relating to reduction in emission of Green House Gas (GHG) by the MSME sector, through energy efficiency.
The second objective is to improve the product quality of MSMEs and to encourage them towards becoming globally competitive.
First of all, you have to apply to SIDBI/Banks/Financial Institutions for sanction of loan for the project. After an appraisal of the Project by SIDBI/Banks/Financial Institutions, you will need to submit the application.
If the loan application has not been submitted through SIDBI, two copies of the Application will be forwarded by the concerned Bank/Financial Institution to SIDBI along with a copy of the loan sanction letter and project viability report.
SIDBI will submit the proposals to the Steering Committee for necessary approval. The Steering Committee will convey the decision to SIDBI with a copy to the applicant MSME for necessary action.
After the sanction, you will need to sign an agreement with the SIDBI/Bank/Financial Institution sanctioning the loan in the prescribed format.
Besides SIDBI, the following five banks/FIs are also the Nodal Banks for the purpose of this scheme.
The Technology & Quality Upgradation Support scheme is the perfect option for small business entrepreneurs. However, you must have the proper credibility to apply for the financial assistance.