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MSME Ministry seeks feedback on draft guidelines of "Promotion of ICT in MSME Sector"

Updated: Mar 14, 2017 08:05:20am
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MSME Ministry seeks feedback on draft guidelines of "Promotion of ICT in MSME Sector"

New Delhi, Mar 14 (KNN) The Ministry of Micro, Small and Medium Enterprises (MoMSME) has sought feedback from stakeholders on draft guidelines of “Promotion of Information and Communication Technology (ICT) in MSME Sector”.

The Scheme for “Promotion of ICT in MSME Sector” is an ongoing scheme from 11th five year plan, but it has been modified in view of emergence of the Cloud Computing Concept.

 The present modified scheme is having budget of Rs. 82.33 crores including Government of India’s contribution of Rs. 54.73 crores.

The scheme is revolving around Cloud Computing which is emerging as a cost effective and viable alternative in comparison to in-house IT infrastructure installed by MSMEs.

In cloud computing, MSMEs use the internet to access common as well as tailor-made IT infrastructure including software for managing their business processes.

The main objective of scheme is to motivate MSMEs to adopt ICT tools and applications in their production & business processes with a view to improve their competitiveness in national and international market.

Under the scheme, the government has proposed subsidy up to Rs 1 lakh for MSEs to encourage them to use cloud computing for information and communications technology applications. In cloud computing, MSMEs use Internet to access common as well as tailor-made IT infrastructure, including software, for managing business.

The subsidy will be provided on user charges for 2 years. The proposals are part of the modified guidelines of the scheme for ‘Promotion of Information and Communication Technology in MSME Sector’. It centres around cloud computing which is emerging as a cost-effective and viable alternative compared to in-house IT infrastructure.

“The benefits that accrued through implementing information and communications technology (ICT) for subsidy period in their enterprises will motivate MSMEs to continue to use the ICT application with their own expenses after this period,” the MSME ministry said in the draft guidelines.

The subsidy disbursed will be through the direct benefit transfer route. The MSMEs initially will make a full payment to the service provider. The office of the development commissioner MSME will disburse funds to Telecommunications Consultants India Ltd (TCIL), which in turn will transfer it to the account of MSMEs.

“It has been observed that MSMEs are generally not availing of the benefits of ICT application and cloud computing for promotion of their business. Therefore, it is proposed that MSMEs be sensitised regarding the benefits of ICT, including cloud computing application for business promotion, at a cost of Rs 5 crore,” the MSME ministry said.

Cloud computing services will be provided in two categories. Under the first, maximum subsidy of Rs 1 lakh per unit will be disbursed over 2 years to micro and small enterprises.

In the second, services through cloud at much lower cost will be offered to the desirous micro, small and medium enterprises.

The subsidy will be on cost of usage services, which will be shared by the central government and the micro and small enterprise units availing of it.

Under the scheme, Awareness Programme will be conducted to create awareness amongst MSMEs about the benefits of implementing ICT in their enterprises, details of the scheme, explain them about how to avail the benefits of scheme, procedural methodology for participating in the scheme.

Minimum 100 one day state level programmes will be organised by field institutes of O/o DC-MSME mainly MSME-DIs organised in association with a National/State level or prominent Industry association.

 In the awareness Programme Specialized Institutions (SIs) as a Key Technical Experts along with Cloud computing service providers should be essentially involved.

 Apart from technical deliberations, there should be live demonstration of ICT through Cloud Computing services.

Funds will be provided @Rs.70,000 per programme. Participation of minimum 30 MSEs should be ensured per programme.

Office of DC MSME said, “Valuable Suggestions and views are requested from all sections of industrial associations, Govts, stake holders for finalizing the guidelines.” (KNN Bureau)

COMMENTS

  1. Dr Mrs Sushma Joiya Pandit
    Dr Mrs Sushma Joiya Pandit 14/03/2017 4:14 PM

    It is a welcome step under the leadership of Modi ji, but it will reduce manpower and will increase quality manufacturing. Skill Development to use computers in manufacturing will be required for the application of CAD/CAM

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