In order to enable and accelerate ICT adoption amongst MSMEs, the MSME Ministry has approved the earlier proposed subsidy of upto Rs 1 lakh for micro, small and medium enterprises deploying cloud computing.
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’.
“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 subsidy guidelines.
Given the call for much needed digital push to the sector with the upcoming GST rollout, approved subsidy centres around cloud computing which is emerging as a cost-effective and viable alternative compared to in-house IT infrastructure.
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“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,” said an earlier Ministry release.
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.
As per previous notification, the total budget outlay in the scheme for this activity is Rs 69 crore with the Centre’s contribution of Rs 41.40 crore for 2 years.
