Technology and Quality Upgradation Support to MSMEs

This Government of India scheme under the National Manufacturing Competitiveness Programme (NMCP) helps MSMEs increase competitiveness by promoting energy-efficient technologies, product quality certification, and cleaner manufacturing processes. It aims to reduce production costs, improve product standards, and enable MSMEs to meet global market demands sustainably.

Highlights

• Promotes the adoption of Energy Efficient Technologies (EET) in MSMEs.
• Supports product certification for national and international standards.
• Facilitates market participation through Carbon Credit Aggregation Centres (CCAs).
• Provides financial assistance for energy audits, energy-saving machinery, and certification expenses.
• Conducts awareness programmes and capacity building for MSME clusters.

What is the Technology and Quality Upgradation Support to MSMEs Scheme?

• The scheme supports MSMEs to reduce energy consumption and emissions by adopting energy-efficient manufacturing processes.
• Helps MSMEs acquire quality certifications to boost market access.
• Enables MSMEs to participate in clean development mechanisms via carbon credit aggregation.
• Offers training, financial incentives, and technical support for sustainable manufacturing.

Objectives

• Introduce MSMEs to energy-efficient technologies 
• Reduce cost of production  & emission of Greenhouse Gas from MSMEs
• Improve product quality and make MSMEs globally competitive
• Make MSME benefit from Clean Development Mechanism (CDM) 

Benefits of Technology and Quality Upgradation Support to MSMEs

• Cost Reduction
  Lower energy bills through efficient technology.
• Market Growth
  Certification increases product acceptance in domestic and export markets.
• Environmental Impact
  Reduced greenhouse gas emissions and carbon footprint.
• Financial Aid
  Subsidies for energy audits, technology upgrades, and product certification.
• Knowledge Enhancement
  Training and awareness programs improve the adoption of best practices.
• Additional Revenue
  Carbon credit trading provides an income stream.
• Better Compliance
  Helps MSMEs meet environmental and safety standards.

Financial Assistance Under the Scheme

Eligibility for the Scheme

You are eligible if:

• You are a Udyam-registered MSME.
• Operating in identified MSME clusters or sectors.
• Committed to adopting energy-efficient upgrades.
• Have project reports and certifications ready from eligible agencies.

You are not eligible if:

• Not an MSME or an MSME outside targeted clusters.
• Have already claimed benefits for the same items.

Documents Required for Application

• MSME registration certificate
• Energy audit reports and detailed project reports (DPRs)
• Invoices and payment receipts for machinery and certifications
• Bank details for subsidy transfers

Application Process for Technology and Quality Upgradation Support to MSMEs

You can apply:

• Offline by approaching the MSME Development Institute or SIDBI.

Examples of Where The Scheme Can Be Used

• A group of tile MSMEs in Morbi, Gujarat installs  energy-efficient kilns under TUQEP, reducing power consumption by 20% and meeting international emission norms.
• Weaving units in Varanasi, UP adopt eco-friendly dyeing technology with scheme support, cutting water usage by 30% while improving fabric quality for exports.
• Small pump manufacturers in Coimbatore, Tamil Nadu upgrade to CNC machines with TUQEP assistance, enhancing precision and qualifying for ISO certification.