Technology upgradation is an initiative that encourages the adaptation of apt modern technology. Further, this would aid MSMEs to procure techniques that in turn helps to increase their sustainability in the global market. Additionally, as support for MSME enhancement, 7 schemes were initiated in association with this scheme.
Major Initiatives Under the Marketing Assistance and Technology Upgradation Programme
The Government of India, bearing in mind the struggles of MSME implements financial assistance in prominent units via the following activities:
- Technology Upgradation in Packaging
- Skill Upgradation or development for modern marketing techniques
- Competition Studies.
- Special attention for North-Eastern Region.
- Providing new market opportunities through State/District level local Exhibitions/Trade fairs
- Encouraging Corporate Governance Practices
- Generation of marketing Hubs
- Reimbursement to ISO 18000/ISO 22000/ISO 27000 certification.
AS-MSME, DC-MSME, and the Government of India are the main agencies that monitor and implement the programmes. Consequently, a Screening cum Steering Committee (SSC) under the same units is in charge. Further, the SSC members have specific roles to perform duly. For instance, The AS and DC of MSME will act as the chairman. However, the Joint Secretary of MSME, Joint Secretary & Chief of NMCC, director of Indian Institute of Packaging Member, Representatives of STQC and BIS Member, Representatives of Industry Associations like CII/ Member FISME/ FICCI, etc. will act as members. Further, the Joint Dev. Commissioner/Director from the office of DC-MSME will act as members of the secretary.
Targeted Units and Products
The schemes focus on the development of MSME hence, they help the units procure the product. Accordingly, few of the said products are:
- Rice Milling
- Auto Components
- Packaged Food
- Leather Goods
- Plastic Components
- Electronic Toys
- Ready-made Garments
- Agricultural Implements
- SS Utensils
- Hand Tools
- Ball Bearing
- Scissors and Knives
- Electric Mixer, Grinder
- Corrugated Box and Packaging
- Laboratory Glass-Wares
Objectives of Technology Upgradation in Packaging
The scheme will generally follow certain objectives that are common with the other schemes:
- Facilitate and support the growth of MSME.
- Linking with industries.
- Creating awareness about the importance of modern technology and techniques.
- Further, create ultimate global market opportunities.
Specific Visions Under the Technology Upgradation in Packaging
- Encourage technology upgradation in the MSME sector.
- Additionally, spread awareness regarding modern packing technology.
- Subsequently, conduct gap analysis for the packing materials that can be exported.
- Most importantly, adapting and using of the modern packaging technology.
Nature of Assistance
Based on the activity, the technology upgradation in the packing scheme provides financial assistance as follows:
This would focus on conducting awareness programs that concentrate on new packaging techniques and ideas. Therefore, Rs 0.5 lakhs will be provided. Further, the unit and GoI would bear at charges in the ratio 20:80. Moreover, most of these activities last only a day. Consequently, the scheme would cover all the miscellaneous charges relating to the programs. Following the approval, the GoI releases the aid in 2 installments. Initial 50% would be after the approval while the appropriate contribution is seen from the units. Next, the other half will be through reimbursement.
The studies will be focusing on the packaging status and the significance of upgradation. Accordingly, the scheme will offer financial aid up to Rs 10 lakh for each study. Further, this will focus on the gap analysis of the packaging. That is the current packaging against modern packaging techniques. Additionally, this will be analyzed by competent agencies in the MSME clusters by following guidelines of open Expression of Interest (EoI), under the Department of Expenditure. Following the approval, GoI releases this in 3 installments that are 25%, 35%, and finally 40%.
This is for packaging requirements, and thus obtain Rs 9 lakhs for 10 units. In this case, the installments are in 4 parts. Subsequently, after approval, the first 25% will be sanctioned. Further, the next two installments of 25% each will be intermediates. Finally, after the submission of a report from the unit, the last installment will be released.
Nevertheless, the SSC will review the funding and will have the last say. Even though the installments are preset, they can be altered in special cases.