Giving a major boost to the MSME sector, the government will set up 15 new Technology Centres (TCs) and upgrade existing 18 TCs at an estimated cost of Rs. 2200 crore (US$ 400 million) including World Bank assistance of US$ 200 million.
Under the Technology Centre System Programme (TCSP), the government has planned to enhance the productivity of MSMEs by improving their access to technology and business advisory services as well as skilled workers through systems of financially sustainable technology centers. The programme is at design stage and envisages a period of six years.
Recent evaluation studies have shown that existing TCs (earlier known as Tool Rooms) have performed well in providing improved manufacturing technology assistance to MSMEs and there is a strong need to replicate the idea in other regions of the country.
The TCSP will provide technical assistance to the TCs and to the MSME Ministry for programme implementation and monitoring & evaluation. The World Bank assistance will be utilized to upgrade existing TCs and develop new TCs.
The programme beneficiaries will be Indian MSMEs and larger firms as well as trainees and workers.
The Loan Agreement was signed by Shri Tarun Bajaj, Joint Secretary, Department of Economic Affairs on behalf of the Government of India and Shri Onno Ruhl, Country Director (India) of World Bank on behalf of the World Bank. Representatives from Ministry of Micro, Small & Medium Enterprises (MSME) and the World Bank, among others, were present on the occasion.