Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Technology Acquisition

Description
The "Scheme for Assistance to Micro, Small and Medium Enterprises MSME " is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state& 39;s dynamic MSME sector, which significantly contributes to employment, GDP, and exports. Effective from August 7th, 2020 to August 6th, 2025, this initiative supports entrepreneurs and strengthens MSMEs, making them globally competitive. The component "Assistance for Technology Acquisition" supports enterprises in acquiring appropriate technology from recognized institutions for product or process improvement.

Exclusions
• Assistance will not be eligible for the purchase of any plant and machinery or equipment.

Definitions
Micro, Small and Medium Enterprise

New Enterprise

Existing Enterprise

Expansion

Gross Fixed Capital Investment (GFCI)

Forward integration, Backward Integration and Diversification

Term Loan

Pipeline Enterprises

Benefits
• Financial Support: 65% of the technology acquisition cost, up to ₹50,00,000/-, is covered.
• Royalty Payment Assistance: Includes support for royalty payments for the first 2 years.

Eligibility Criteria
1. The firm must be a Micro/Small/Medium enterprise.
2. The technology must be acquired from a recognized institution or technology provider.
3. The applicant must obtain prior approval from the MSME Commissionerate within one year of signing the MoU.
4. The technology should be related to product or process improvement.

Application Process
Step 1: Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "New Investor Registration" to access the registration form.
Step-2: Fill in the Registration Form. Click on "Submit".
Step-3: Verify the E-mail ID using the link sent on your r…
Offline

Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "New Investor Registration" to access the registration form.
Step-2: Fill in the Registration Form. Click on "Submit".
Step-3: Verify the E-mail ID using the link sent on your registered E-mail ID.
Step-4: After verification, you will be registered successfully.
Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "Login".
Step-2: Enter the email address and password you used during registration.
Step-3: Click the "Login" button to access your account.
Step-4: Now fill in the required details and mandatory documents about your business to complete the application process.

Required Documents
• Copy of Udyam/IEM/LOI Registration certificate.
• Constitution of Enterprise (Memorandum of association, partnership deed, etc).
• Power of attorney / Board Resolution of Authorized Signatory/consent letter.
• Copy of signed & stamped MOU/Agreement/Contract regarding technology acquisition.
• Patent certificate of technology (if applicable).
• CA certificate regarding fixed capital investment.
• Copy of bills of expenditure incurred.
• Copy of the highlighted bank statement.
• Copy of self-certified shareholding pattern (if applicable).
• Brief description of technology with notes on benefits, outcome/result after adoption of technology on letterhead.
• Audited report with balance sheet/Annual Audit Report (latest, if applicable).
• Project report/Technical Presentation regarding technology.
• Term loan detail as per bank sanction letter (if applicable).
• PAN card of enterprise, promoters/directors/partners, and authorized signatory.
• GST registration certificate (if applicable).
• Technology provider report.
• GPCB consent (if applicable).
• Proposed cost of project and means of finance for technology to be acquired.
• Supporting documents for SC/ST enterprise.

Frequently Asked Questions
Q: What is the "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)"?
A: The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" aims to position Gujarat as a global business destination by promoting sustainable manufacturing, inclusive development, and balanced regional growth.

Q: What is the duration of the scheme?
A: The scheme is effective from August 7, 2020, and will remain in operation until August 6, 2025.

Q: What is the objective of the component " Assistance for Technology Acquisition"?
A: The component " Assistance for Technology Acquisition" supports enterprises in acquiring appropriate technology from recognized institutions for product or process improvement.

Q: Who is eligible to apply for this component?
A: Any new or existing enterprise that acquires technology from a recognized institution for product or process improvement is eligible to apply.

Q: What percentage of the technology acquisition cost is covered under the scheme?
A: The scheme provides financial assistance covering 65% of the technology acquisition cost, up to a maximum of [?]50,00,000/-, including royalty payments for the first 2 years.

Q: Can an enterprise use the assistance to purchase plant and machinery?
A: No, the assistance is strictly for acquiring technology and does not cover the purchase of plant, machinery, or equipment.

Q: Is it necessary for an enterprise to obtain prior approval before applying?
A: Yes, prior approval from the MSME Commissionerate must be obtained within one year of signing the MoU/agreement/contract with the technology provider.

Q: What types of technologies are eligible for assistance under this scheme?
A: The scheme supports technologies that improve products or processes, including patented technologies from both Indian and foreign companies.

Q: Can an enterprise apply if the technology has already been purchased?
A: No, enterprises must obtain prior approval before acquiring the technology to be eligible for financial assistance.

Q: Are startups eligible to apply for this scheme?
A: Yes, startups that meet the eligibility criteria can apply for assistance under this scheme.

Q: Is there any restriction on the technology provider?
A: Yes, the technology provider must be a recognized institution or a company offering patented technology.

Q: Can an enterprise apply for assistance if it has already been in operation for several years?
A: Yes, both new and existing enterprises are eligible for assistance under this scheme.

Q: Will an enterprise receive assistance for a technology licensing agreement?
A: Yes, technology licensing agreements from recognized institutions are eligible for assistance under this scheme.