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SSI Policies » Technological Development &
Modernisation Fund Scheme 
Assistance under the scheme is available for meeting the expenditure on purchase of capital equipment, acquisition of technical know how, upgradation of process technology and products with thrust on quality improvement, improvement in packaging and cost of TOM & acquisition of ISO-9000 series certification.
Units which are already exporting their products or have the potential to export at least 25% of the output by adopting modernisation scheme would be eligible for assistance from the fund provided they have been in operation of atleast 3 years and are not in default to bank/financial institutions. Assistance under the scheme will be need-based subject to a minimum of Rs. 10 lakh per unit.
Technical upgradation and quality improvement (including TSC - 9000)
Technical Development Trust Funds for Technology upgradation / acquisition / transfer in the small scale sector.
Towards facilitating Industry Associations and NGOs in the programme of technology upgradation and transfer in small scale sector, a Plan Scheme has been approved for providing grants including assistance to Technology Development Funds to be created in various states with the involvement of State Governments and Industry Associations. Total Outlay for this scheme is Rs. 150 lakhs during Eighth Plan period.
The ratio of contribution to the fund could be 60% from Government of India, 40% from State Government, Industry Associations and other developmental agencies including banks put together. The initiative could be with the state Govts./Industry Associations, to rise their contribution of 40% by mobilising resources at the State level. Assistance to such a fund is restricted to Rs. 30 lakhs per fund. The scope and activities to be generated out of the Fund are as follows :
This technology fund, inter-alia, is to bring about technological upgradation in selected areas of the SSI Sector with the involvement of CEIR Labs, Tool rooms, Testing Centres, PPDC etc. It will also help in development of prototypes, designs, drawing and dissemination of the information through seminars, workshops, Consultancy etc.
Arranging of technology transfer between SMEs within the country and also by way of arranging tie-ups for technology transfer between large and small industries, particularly for ancillarisation and vendor development.
Arranging of technology transfer from Indian small enterprises to small enterprises in other developing countries.
Arranging of technology transfer to the Indian SMEs in other developed countries.
Sponsoring/sponsoring studies related to upgradation of technology in specified SSI sector, clusters.
It is also proposed that following activities could be included for making a portion of the fund, more useful for getting faster results :
- The fund at the disposal of the Government/DCSSI could also be
utilised for sponsoring technology related training programmes in
India & abroad.
- Organising Seminars/Workshops: Participation of experts/SSI industry/concerned institutions in seminars/workshops, symposiums etc, held abroad by various international and national level agencies. With regard to SSI industries, the fund could support upto 50% of the cost not exceeding Rs. 50,000 covering travel, per diem etc. per unit.
- Provide partial funding support upto 50% of the cost acquisition of technologies, negotiating transfer for technology agreement, and such related activities.
- Meeting expenditure for experts participation from other developed countries in various seminars/workshops related to technology transfer/acquisition. - Conducting of technology related studies including cluster studies etc.
During the Eighth Five Year Plan, a sum of Rs. 70 lakhs was earmarked for the programme of modernisation of selected small scale industries. Under this scheme it is proposed to prepare modernisation guides, status reports, technology upgradation reports, cluster study reports, units specific study reports and organise contact programme in the form of seminars/workshops for dissemination of information.
