National Capital Goods Policy

Machine Tools is among the sectors in the National Capital Goods Policy aimed at making the Indian capital goods sector globally competitive.

The policy integrates major capital goods sub-sectors like machine tools, textile machinery, earthmoving and mining machinery, heavy electrical equipment, plastic machinery, process plant equipment, dies, moulds and press tools, printing and packaging machinery and food processing machinery as priority sectors to be envisaged under 'Make in India' initiative.

A boost to this sector is envisaged through this National Capital Goods Policy by providing for an enabling ecosystem for capital goods growth and ensuring sustained incentive for domestic manufacturers to service domestic as well as export market demand. The policy envisages increasing production of capital goods from ~Rs. 230,000 Cr in 2014-15 to Rs. 750,000 Cr in 2025 and rising direct and indirect employment from the current 8.4 million to ~30 million. It envisages increasing exports from the current 27% to 40% of production while increasing share of domestic production in India's demand from 60% to 80%, thus making India a net exporter of capital goods. The policy also aims to facilitate improvement in technology depth across sub-sectors, increase skill availability, ensure mandatory standards and promote growth and capacity building of MSMEs.

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Government schemes

Development Commissioner (MSME), Government of India announces various schemes to support Micro, Small, & Medium Enterprises. These schemes are aimed at Enterprise & Skill Development, Technology Upgradation, Cluster Development, Marketing, etc.

Schemes for MSME 2022-23 (Published and released in May2022 by Ministry of MSME) Download Now

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Invitation for EOI Aggregation Services

The Micro Small and Medium Enterprises (MSMEs) requires services like Machine Supplies, Software, Hardware Supports and Media Communications etc. There is a constant request from MSME units for availing these services on transparent and affordable prices.   NSIC renders holistic services to MSME and would like to facilitate services in unmet areas of MSME sector.  NSIC is now seeking EoI from Manufacturers, Service Providers, Dealer etc., for on-boarding the product & services to MSME units through NSIC “Aggregation Model.

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The Ministry of MSME, Government of India, through the Office of the Development Commissioner (MSME),received a loan of USD 200mn from World Bank for the Technology Centre Systems Programme (TCSP), for a total Project size of USD 400 million and intends to apply part of the proceeds for “SUPPLY OF 05 LOTS OF MACHINES AND EQUIPMENT FOR PRODUCTION & TRAINING AT NEW & EXISTING TECHNOLOGY CENTERS” under Package – 42 through International Competitive Bidding (ICB).

Click here for the copy of the Invitation for Bids (IFB), which contains requirement like Name of equipment, Bid Security required Critical Date Sheet, link to open Bidding Document, etc. For other details, you may follow the link mentioned in IFB attached.


Programme on ‘Technology Development & Transfer’ by Department of Scientific & Industrial Research (DSIR)

  • Scheme on ‘Technology and Quality Upgradation Support to MSMEs’ by Union Ministry of MSME.

  • Scheme on ‘Enabling Manufacturing Sector to be Competitive through QMS&QTT’ by Union Ministry of MSME.

  • Scheme on ‘Financial Support to MSMEs in ZED Certification’ by Union Ministry of MSME.

Note: However, none of these policy-enablers comes close to the Scheme for “Enhancement of Competitiveness in the Indian Capital Goods Sector” – specifically the components of  –

  • “Centre of Excellence in Machine Tools and Production Technology” {AMTDC}; &
  • “Integrated Industrial Infrastructure Facilities for Machine Tool Industry” {TMTP}.

Department of Scientific & Industrial Research (DSIR) Programme / Scheme

Technology Development and Transfer

Technology Development Programmes

One of the key objectives of the Department is to promote technology development in various fields. The Department has been supporting Technology development projects which include materials, devices, and processes. The Programme supports activities aimed at developing technologies both in the advanced/emerging areas and in traditional sectors/areas. Under the Programme, the feasibility of fresh ideas/ concepts is also assessed for their potential conversion into useful technology/product.

Mandate of TDP

The mandate of Technology Development Programmes (TDP) is to convert proofs-of-concept for technologies/ techniques/ processes/products into advance prototypes for validation and demonstration in actual field settings. The commercialization of these technologies needs further assessment/incubation, which does not fall in the scope of the Technology Development Programme. Transfer of technology developed under the project to the industry should ideally be the onus of the host institutions. Proposals for incremental R&D over the existing technologies are also considered for support. Projects related to design and development of Software/IT, as required for products and processes, as a part of a technology development project shall be considered. Pure software development does not fall in the scope of the Programme.


  • Support R&D for development of innovative technologies in identified areas.
  • Promote application of advanced technology for improving the performance and value addition to existing technology.
  • Capacity building in the area of technology development

Core-Areas for inviting proposals under TDP

Eligibility for submission of the proposals under TDP

The Project Proposals could be submitted for financial support by scientists/engineers/ technologists working in academic institutions/registered societies/R&D institutions/laboratories having adequate infrastructure/facilities to carry out Technology Development work/prototype building. 

Methodology of implementation

  • Identification of niche areas for technology development initiatives
  • Identification of the experts and the institutions capable of formulating and implementing technology development activities
  • Soliciting proposal through advertisement in scientific/ technological journals and launching the calls for proposal on the website

Evaluation criteria

  • Relevance and the scientific quality of the proposal
  • Availability of clear statement of quantified objectives and deliverables
  • Technical feasibility and economic viability in view of available options at the end of development

Evaluation mechanism

  • Initial Screening to assess the relevance of proposal and suitability as per mandate
  • Peer review to facilitate broad based consultation
  • Recommendations by respective core group (PAC/EAC) for financial support  

Ministry of MSME Schemes

1.3.6. Technology and Quality Upgradation Support to MSMEs

Related Scheme

Technology and Quality Upgradation Support to MSMEs


The scheme advocates the use of energy efficient technologies (EETs) in manufacturing units so as to reduce the cost of production and adopt clean development mechanism.

Nature of assistance

Capacity building of MSME clusters for energy efficiency/clean development and related technologies. Funding support of up to 75% for awareness programmes, subject to a maximum of Rs 75,000 per programme;

Implementation of energy efficient technologies in MSME units 75% of actual expenditure for cluster level energy audit and preparation of model DPR;

Setting up of Carbon Credit Aggregation Centres. 50% of actual expenditure subject to maximum Rs 1.5 lakh per DPR towards preparation of subsequent detailed project reports for individual MSMEs on EET projects;

Encouraging MSMEs to acquire product certification / licenses from National / International bodies. 75% of the actual expenditure, subject to a maximum Rs 15;

25% of the project cost as subsidy by Government of India, balance amount to be funded through loan from SIDBI/banks/ Financial Institutions. MSMEs are required to make the minimum contribution as required by the funding agency;

75% subsidy towards licensing of products to national/ international standards; ceiling Rs 1.5 lakh for obtaining product licensing/marking to National standards and Rs 2 lakhs for International standards.

Who can apply?

Expert organisations like PCRA, BEE, TERI, IITs, NITs, etc.
State Govt. agencies like MITCON, GEDA, etc.
Cluster/industry-based associations of MSMEs
NGOs and Technical Institutions.

How to apply?

Obtain product certification from national standardisation bodies (like BIS and BEE) or international product certifications (CE, UL, ANSI, etc.)

The applicant applies in the specified format (given in annexure-IV of scheme guidelines) along with required documents for reimbursement of fees, forwarding it, to MSME-DI concerned.


1.3.8. Enabling Manufacturing Sector to be Competitive through QMS&QTT

Related Scheme

Enabling Manufacturing Sector to be Competitive through QMS&QTT


The scheme endeavours to sensitize and encourage MSEs to understand and adopt the latest Quality Management Standards (QMS) and Quality Technology Tools (QTT).

Nature of assistance

Funding support for the introduction of appropriate course modules in technical institutions through expert organisations.

Funding support up to Rs 79,000/- per programme for conducting QMS/QTT awareness campaign for MSEs through expert organisations.

Funding support up to Rs 2.5 lakh per unit for implementation of QMS and QTT in selected MSMEs through expert organisations.

Funding support for conducting C-watch study for a product having a threat from foreign goods.

Who can apply?

Expert organisations like Quality Council of India (QCI), National Recruitment Board for Personnel and Training, Consultancy Development Corporation, National Productivity Council, Standardisation, Testing & Quality Certification (STQC, a Society under the Ministry of IT), IIQM (Indian Institute of Quality Management), Industry Associations that have taken active interest in QMS/QTT, Technical Institutions, Engineering Colleges, Tool Rooms and similar bodies and MSEs can apply for assistance under this scheme.

How to apply?

MSEs or clusters may contact Office of the DC- MSME. The DC office will finalise the MSME clusters for conducting the Awareness Programme on Quality Management Standards and Quality Technology Tools (QMS/QTT). Web link: Download The file ( bytes) 


1.1. Financial Support to MSMEs in ZED Certification Scheme

Related Scheme

Financial Support to MSMEs in ZED Certification Scheme


The objectives of the scheme include inculcating Zero Defect & Zero Effect practices in manufacturing processes, ensure continuous improvement and supporting the Make in India initiative.

The ZED Certification scheme is an extensive drive to create proper awareness in MSMEs about ZED manufacturing and motivate them for assessment of their enterprise for ZED and support them. After ZED assessment, MSMEs can reduce wastages substantially, increase productivity, expand their market as IOPs, become vendors to CPSUs, have more IPRs, develop new products and processes, etc.

The scheme envisages promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst MSMEs and ZED Assessment for their certification so as to:

Develop an Ecosystem for Zero Defect Manufacturing in MSMEs.

Promote adaptation of Quality tools/systems and Energy Efficient manufacturing.

Enable MSMEs for the manufacturing of quality products.

Encourage MSMEs to constantly upgrade their quality standards in products and processes.

Drive manufacturing with the adoption of Zero Defect production processes and without impacting the environment.

Support ‘Make in India’ campaign.

Develop professionals in the area of ZED manufacturing and certification.

Nature of assistance

Assessment & Rating/Re-rating/Gap analysis/Hand holding

The subsidy provided by the Government of India for Micro, Small & Medium Enterprises will be 80%, 60%, and 50% respectively. There shall be an additional subsidy of 5% for MSMEs owned SC/ST/women and MSMEs located in NER and J&K for assessment & rating/re-rating/gap analysis/hand-holding:

a) Assessment/Rating by empanelled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises' Certification Fee: average 70% of Fee) (Assessment Fee Rs. 10,000/-& Rs 80,000/- per enterprise respectively for Desktop Assessment and ZED rating Complete Assessment).

b) Additional rating for Defence angle i.e. Defence ZED by empanelled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises' Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40,000/- per enterprise.)

c) Gap Analysis, Handholding, Consultancy for improving the rating of MSMEs by Consultants through QCI/NPC, Field formations of O/o DC-MSME viz. MSME-DI, MSME-TC including its autonomous bodies, BEE etc. (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises' Consultancy charges: average 70% of Fee) (Hand holding charges Rs. 1.9 Lakh per enterprise whereas in case of MSMEs owned by SC/ST entrepreneurs additional support of Rs 10,000/- will be provided.)

d) Re-Assessment/Re-Rating by Credit Rating Agencies & Other Agencies (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises' Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40000/- per enterprise.).

Who can apply?

All manufacturing Micro, Small and Medium Enterprises (MSME) having Udyog Adhar Memorandum can apply.

How to apply?

The ZED Certification Scheme is a 4 steps process:

Step 1: Register free on the online portal of ZED (, using the following link:, using the valid (Indian) mobile number and email address.

Step 2: Online self-assessment on the ZED parameters followed by Desktop Assessment.

Step 3: Site-assessment, if selected on the basis of Desktop Assessment.

Step 4 : Consultancy: Rated MSMEs will have the option to avail the service of an authorized ZED consultant for gap-analysis and handholding.


Financial Incentives to MSME'S as per Karnataka Industrial Policy 2014-19

Karnataka Industrial Policy 2014-19 Provides Financial Incentives to MSME'S. Please visit the KCTU website link which has a link for Karnataka Industrial Policy 2014-19 for Zoning details. Please feel free to contact KCTU for any queries. 

KCTU has assisted Technical R&D  -institutions/ Engineering colleges which are engaged in  R&D activities in solving the Technical problems, KCTU can facilitate MSME's in this regard.

Click here to view zones applicable

Click here to view the brochure 

Initiative by SIDBI: “Certified Credit Counsellors (CCCs) for MSMEs”

SIDBI has launched the Certified Credit Counsellors for MSMEs programme.

  • The intent behind the initiative is to evolve a system professional credit intermediaries/advisors for MSMEs, who could help bridge the information gap of aspirant entrepreneurs, as also help banks to make better credit decisions.
  • These CCCs shall be on board the “Mitra portal” ( and
  • The Mitra portals [ and] conceived and developed by SIDBI, has ignited the young entrepreneurs to set up their own business, be it in manufacturing, trading or services sectors. It also supports existing enterprises looking for growth funding.

Click here to know more information on CCCs.

Click here to access handbook on CCCs.

Click here to download a brochure on the udyamimitra portal. 

For further details write to or call on 022-67221526.

MSME Digital Scheme and Subsidy of Rs. 1 lac for Adoption of IT and ERP System

Ministry of MSME has launched a new scheme to support the adoption of IT solution by the MSMEs.

  • Through this scheme, all the manufacturing industries can adopt for the ERP system at a super low cost as well as avail the subsidy.

Click here to download scheme Guidelines.

Interested members are requested to contact your nearest MSME DI for organising an awareness programme. Click here to know your nearest MSME DI offices. 

National Apprenticeship Promotion Scheme

Implementation of National Apprenticeship Promotion Scheme by Ministry of Skill Development and Entrepreneurship Directorate General of Training.

The government of India has approved the 'National Apprenticeship Promotion Scheme' (NAPS) with a target to provide apprenticeship training to 50 lakh youth by 2020. Under the scheme, the Government of India will share 25% of prescribed stipend subject to a maximum of Rs 1500 per month per apprentice with the employers.

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click here For detailed PPT 

Compendium of Support Schemes for Industry - April 2016

IMTMA has consolidated all the available schemes related to Technology development, R&D, Research, etc and has released the Compendium of Support schemes for Industry in April 2016.

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click here For updates as on June 2017

Credit Linked Capital Subsidy Scheme for Technology Upgradation

The scheme aims at facilitating Technology Upgradation of Micro and Small Enterprises by providing 15% capital subsidy (12% prior to 2005) on institutional finance availed by them for induction of well established and improved technology in approved sub-sectors/products.

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National Manufacturing Competitiveness Programme (NMCP)

DC-MSME has drawn up Ten schemes including schemes for promotion of ICT, mini tool room, design clinics, Lean manufacturing and marketing support for SMEs. Implementation will be in the PPP model, and financing will be tied up during the course of the 11th Plan.

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Quality Upgradation/Environment management for small  scale sector through incentive for ISO 9000 /ISO 14001 /HACCP Certifications

The scheme envisages reimbursement of charges of acquiring ISO-9000/ISO - 14001/HACCP certifications to the extent of 75% of the expenditure subject to a maximum of Rs. 75,000/ in each case.

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