Lok Sabha Question No. 5577 (UNSTARRED), answered on 2018-04-02
Subject: TAD Fund
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: S.P. MUDDAHANUMEGOWDA, RAJESHBHAI NARANBHAI CHUDASAMA

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 5577 TO BE ANSWERED ON: 02.04.2018

## TAD FUND

## 5577.  SHRI S. P. MUDDAHANUME GOWDA: SHRI RAJESHBHAI CHUDASAMA:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether the Government has constituted some technology acquisition and development fund to provide clean, green and cost-effective energy technology, if so, the details thereof;
- (b) whether small industries will be able to buy equipment, machine and technology aimed at  reducing  energy  consumption  and conservation of water through this  fund and if so the details thereof; and
- (c) the details of the funds proposed to be provided to small industries for the said purpose?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a)to(c):      Government  of  India  has  notified  the  Scheme  for  Technology  Acquisition  and Development Fund (TADF) to provide funding support to MSMEs for the acquisition and development of clean and green technology.  The Scheme is applicable to all existing and new  Micro,  Small  and  Medium  Enterprises  (MSMEs)  including  those  in  the  National Investment  and  Manufacturing  Zones  (NIMZs)  in  respect  of  their  investments  made  after notification of the Scheme.

The financial support under TADF Scheme consists of the following:

|   S. No. | Components under TADF Scheme                             | Funding Support                                                                                                                                                                                                                                          |
|----------|----------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Direct Technology Acquisition                            | Reimbursement of 50% of technology transfer fee or Rs.20.00 lakhs, whichever is lower.                                                                                                                                                                   |
|        2 | Indirect Technology Acquisition i.e. through Patent Pool | Subsidy of 50% of the mutually agreed value or Rs.20.00 lakhs, whichever is lower.                                                                                                                                                                       |
|        3 | Subsidy for Manufacturing Equipment / Technology         | Subsidy upto 10% of capital expenditure (on procuring plant & machinery) and 5% interest reimbursement of the nominal interest charged by the lending agency, subject to a maximum of Rs.50.00 lakhs.                                                    |
|        4 | Incentive scheme for Green Manufacturing                 | Energy, Environmental and Water Audits for industrial / institutional units -  The MSME is eligible for a grant of 25% of audit fee subject to a maximum of Rs.1.00 lakh and subject to actual improvements made and certified by the approved auditor. |
|        4 | Incentive scheme for Green Manufacturing                 | Waste water treatment -  MSMEs practicing Zero Water Discharge (ZWD) will be eligible for 10% one-time capital subsidy, subject to maximum of Rs.2.00 lakhs, on the relevant equipment / systems subject to actual usage for one year.                  |
|        4 | Incentive scheme for Green Manufacturing                 | Green buildings-  The unit / facility is eligible for Rs.2.00 lakhs of incentive for constructing Green Building.                                                                                                                                       |