Tool Rooms and Technical Institutions - A Component of Infrastructure Development & Capacity Building scheme

The “Tool Rooms and Technical Institutions – A Component of Infrastructure Development & Capacity Building” scheme is operated by the Ministry of MSME, Government of India. Under this scheme, 18 major Technology Centres (earlier called Tool Rooms & Technical Institutions) have been established across India. The purpose is to provide MSMEs access to tooling, training, process & product development, and technical services so that your business (as an MSME) can improve productivity, access improved tooling, get trained manpower, and thereby become more competitive.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Access to Tooling Facilities & Services: Tool rooms provide design, manufacture of tools/moulds/dies, precision components, job work.
Skill Development & Training for Industry-ready Manpower: Training courses from school drop-out to M.Tech level, NSQF/AICTE/NCVET aligned.
Product & Process Development, Consultancy Services: The centres assist MSMEs in process-improvement, product design, testing, quality control.
Sector-Specific Technical Institutions: The set covers sectors like general engineering, foundry & forging, electronics, fragrance & flavour, glass, sports goods, footwear, etc.
Infrastructure Upgradation of Centres: Procurement of latest machines (CAD/CAM, CNC, 3D printing, robotics) to support MSMEs.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
1. Infrastructure Upgradation of Tool Rooms / Technical Institutions	Up to 90% of the project cost (Maximum project cost: ₹15 crore)	The Government provides grant-in-aid to existing Tool Rooms or Technical Institutions to upgrade infrastructure, machines, and laboratories. For example, if a Tool Room proposes a ₹10 crore upgrade, the government may fund ₹9 crore and the institution contributes ₹1 crore.
2. Procurement of Machinery & Equipment	Full or partial grant as approved by MSME Ministry	Funds are provided for the purchase of CNC machines, CAD/CAM workstations, 3D printers, testing and measurement instruments to help MSMEs access advanced facilities without buying them individually.
3. Training Fee Reimbursement (for SC/ST trainees)	100% reimbursement of training fee under SCSP/TSP heads	The Ministry reimburses the training fee of SC/ST trainees to promote inclusive skilling. For example, if a training course costs ₹15,000, it is fully reimbursed by the Government for eligible candidates.
4. Technical Consultancy / Product Development Support to MSMEs	Subsidised charges (varies by centre)	MSMEs get subsidised access to design, testing, and product development services. Example: A die-design consultancy that normally costs ₹50,000 may be provided for ₹20,000 through a subsidised rate at the Tool Room.
5. Training Equipment and Software Procurement	100% Government funding (institutional level)	Institutions receive full support to install modern training systems — such as simulators, advanced CAD software, or robotics labs — ensuring MSMEs get trained manpower in modern manufacturing technology.

Eligibility Criteria

Who Can Apply:

MSME units desiring tooling support, die/mould manufacturing assistance, process/product improvement, or training of personnel.
Trainees from school-dropout level up to postgraduate/M.Tech level are eligible to enrol in training programs at the centres.
MSMEs in sectors relevant to the Technology Centres (engineering, foundry, electronics, glass, footwear, etc.).

Who Cannot Apply:

Applicants who do not comply with the norms of the centre (for example diversion of services, misuse of facilities) may be ineligible or barred.
Units outside the MSME category or entirely unrelated to manufacturing/tooling may not be eligible for tooling support services (training may still be available) - applicants should verify with the specific centre.
Applicants without clarified need for tooling/training or not conforming to eligibility for specific service/training modules may not be accepted.

Documents Required

Identity proof (Aadhaar, Voter ID, etc.)
Address proof
MSME registration certificate (for units)
Project or service requirement statement (what tooling/service/training you need)
Educational proof (if applying for training program)
Bank account details (for refunds/fees if applicable)
Consent/undertaking to abide by centre norms, payment of fees, usage of service/training outcome.
For clusters: List of member units/association details and authorization for application.

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.

Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.

Option 2: Direct Government Process

Visit the official portal of the Ministry of MSME or the specific Technology Centre website linked to your region/sector
Identify the training program or tooling service required (e.g., training in CAD/CAM, tooling job-work, die design).
Fill the application form (online/physical) for training or service (job-work/tooling) as provided by the centre.
Submit required documents and pay applicable fees (if any) and await selection/approval.
Upon approval, attend the training or get access to the tooling/service - follow up with centre for scheduling and delivery of services/training.
For MSME units using tool-room facilities, abide by usage norms, quality standards and payment for service (if applicable).

Option 3: Through State/Cluster Node or Consortium

If you are part of a cluster, industry association or consortium of MSMEs, apply via the designated Node or aggregator for tooling and technology services.
The node may coordinate with the Technology Centre for training, job-work, common tooling/mould-making, thereby sharing cost and benefiting multiple MSMEs.