Scheme on Technology Acquisition and Development Fund

Dated September 21, 2015 | Copy of | Notification F.No.9/4/2012-MPS | The Government hereby notifies a Scheme for enabling Technology Acquisition and Development as per the National Manufacturing Policy 2011 (NMP) through patent pool and licensing; reimbursement of direct patent acquisition cost; incentivizing production of equipment for controlling pollution, reducing energy consumption and for water conservation through interest and capital subsidies; and incentives for energy and environmental audit, waste water treatment, rain water harvesting, renewable energy and Green Buildings. 1. Short Title: This scheme will be called the Scheme for Technology Acquisition and Development Fund (TADF). This will be a Central Sector Scheme. 2. Commencement and duration of the Scheme: It will come into effect from the date of its notification in the Gazette of India and remain in force up to 31.3.2017. 3. Applicability of the Scheme: 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. 4. Eligibility Criteria for Financial Support: The objective of TADF is to provide funding support for the acquisition and development of clean and green technologies. i) Industries/companies/organizations willing to avail the funding support should be eligible as per the specifications/definitions/eligibility criteria for what can be categorized as ‘Clean and Green Technology’ as devised by a Committee called the Green Manufacturing Advisory Committee (GMAC) comprising representatives from the Ministries/Departments of the Central Government concerned and select external experts. The criteria will be consistent with the objective of the National Action Plan on Climate Change and the strategy for inclusive sustainable development. The criteria will be reviewed by the GMAC periodically as technology being dynamic and evolving constantly. ii) Any unit seeking subsidy under this Scheme should certify that it has not obtained or applied for subsidy for the same purpose or activity from any other Ministry or Department of the Government of India or State Government. 5. Ensuring compliance of clean and green parameters and implementation of incentive scheme: In case of industrial areas/establishments/institutional units located outside the NIMZ, GITA will ensure the compliance of clean and green parameters and implementation of incentive scheme and will provide a copy of compliance/implementation report to the concerned District Industrial Centres (DICs) of the State Government. In case of NIMZ, the Special Purpose Vehicle (SPV) concerned will be enjoined with the responsibility of ensuring project compliance with the above-mentioned criteria set-up by the Committee and also put up the cases for incentives after due diligence. The onus of proving ‘cleaner’/‘greener’/‘energy efficient’ will be on the claimant subject to third party certification by an agency/expert drawn from a panel approved by the GMAC. The claimant will provide clear, objective information on the product/technology throughout the lifecycle from manufacture to disposal. 6. Mode of Technology Acquisition: i. Outright purchase of technologies with/without the engagement of a consultancy ii. Joint venture with counter parts for relevant technology. iii. Purchase of active intellectual Property Right (IPR) which meets buyers’ requirements iv. Creation of “Technology Pool/Patent Pool” 7. Extent of Financial Support for Technology Acquisition: i. Financial support up to Rs. 20.00 lakhs or 50% of the cost of technology/patents/industrial design, whichever is lower will be provided to Industry for acquiring technology patented upto a maximum period of 5 years prior to the date of submission of the project from individuals, organizations located in India, and anywhere in the globe, who are legitimate technology owners. ii. Technologies/Patents/Industrial design acquired centrally from various sources, as a pool, will be licensed to selected companies, at mutually agreed value and terms and conditions. 8. Process of Financial Support for Direct Technology Acquisition: (a) Proposals from Indian industry will be invited who have identified the Technology, its source and value for in-principle approval from TADF. (b) Proposals will be evaluated by a panel of experts on the following parameters: (i) Competence of the applicants/Industries/Organizations in leveraging the technology for manufacturing and global market access. (ii) Techno-Commercial suitability of the technology to be acquired. Thereafter, the Evaluated proposals will be submitted to GMAC for final approval. (c) After the technology is received by the applicant MSME, it will submit technology transfer agreements duly signed with proof of payments made, for reimbursement of 50% of technology transfer fee or Rs. 20 lakhs, whichever is lower, to Global Innovation and Technology Alliance (GITA). Any technology transfer fee which is already part of the sales will not be eligible for financial support. (d) The fund recipient will submit periodic report as may be specified, to GITA on the status of technology acquired and benefits accrued. 9. Process of Financial Support for Indirect Technology Acquisition, i.e. through Patent Pool: It will include the following: (a) Mapping of technology needs of MSMEs and inviting proposals from interested MSMEs for particular technologies/patents (b) Proposed acquisition of Technology/Patent by applicant MSMEs from across the Globe through the following process: i. Identification of multiple sources of patents world-wide, including Off-patent items. ii. Assessments and evaluations of technologies/Patents by a pool of experts iii. Negotiations with Technology/Patent providers for acquiring patents through formal agreements. (c) Creation of “Technology Pool/Patent Pool”. (d) Call for concrete-proposals from Indian industry who would be interested to have the license for the acquired Technology/Patent. (e) Process of evaluation and approval of the proposals will be similar to that of para 8 (b) above. (f) Technology/Patent will be licensed to selected companies, with a mutually agreed value, and terms and conditions. These companies will get a subsidy of 50% of the mutually agreed value or Rs. 20 lakhs, whichever is lower. If the mutually agreed value is more than Rs. 20 lakhs, the companies will pay to GITA the differential amount over Rs. 20 lakhs. (g) The technology recipient will submit periodic report as specified, to GITA on the status of technology acquired and benefits accrued. 10. Identification and Evaluation Mechanism of beneficiaries of Technology Acquisition: Identification of the beneficiary or evaluation of eligibility will be done on the following criteria: i. The Companies must be incorporated in India, and should be in the MSME category as defined by the Government of India. ii. The technology to be acquired must be a registered intellectual Property (Patent/Industrial Design) with proven and significant sales volume. iii. The technology to be approved by GMAC as ‘Clean and Green’. iv. The company must either have required competence in the field or already been involved in the production, fabrication and manufacturing process using the technology. 11. Scheme of Subsidy for Manufacturing Equipment/Technology: The fund will provide support through subsidies/incentives to MSMEs for manufacturing Equipments and Technologies to be used in the following: i. Production of energy from the sun, wind, geothermal and other renewable resources; clean coal technology; creation and management of carbon sinks. ii. Energy-conservation, energy efficient lighting and smart grid. iii. Water conservation. iv. Reduction in pollution in air, water, etc. v. Recycling of waste vi. Refining or Blending of renewable fuels. vii. Green Building viii. Fuel Cells, Micro-turbines, Energy-Storage Systems for use with electric or hybrid-electric motor vehicles. 12. Extent of Subsidy for Manufacturing Equipment/Technology: Financial Support for manufacturing Equipments and Technologies as indicated in Paragraph 11 above will be 10% of the Capital Expenditure (on procuring Plant and Machinery) and 5% interest reimbursement of the nominal interest charged by the lending agency, subject to a total subsidy up to Rs. 50 lakhs. 13. Process of Subsidy Support Manufacturing Equipment/Technology: i. Proposals from Indian Industrial Units will be invited who have either set up or expanded manufacturing units for producing the specific equipments as listed above, for seeking approval from TADF. ii. Process of evaluation and approval of the proposals will be similar to that of para 8 (b) above. iii. On approval, manufacturing units will be provided with a subsidy of up to 10% of capital expenditure incurred on new plant and machinery subject to a maximum of Rs. 50 lakhs. iv. A periodic Report on manufacture of Equipments and Technologies with Benefits accrued, as specified, will be submitted by the manufacturing unit for 5 years to GITA. 14. Incentive Scheme for Green Manufacturing: The scheme will facilitate resource conservation activities for industrial/institutional units including those located in NIMZs through the introduction of suitable incentives/subsidies for energy/ environmental/water audits, construction of green buildings, waste treatment and renewable energy projects. 15. Mode of Financial Support for Green Manufacturing: Financial support for Green Manufacturing under the TADF will be provided to MSMEs for the activities as given below.

  16. Eligibility period for the Financial Support: The subsidy/incentives/financial support under the scheme will be available to those manufacturing units which are pre-registered with the appropriate government, and whose projects are sanctioned and operational prior to 31.3.2017. 17. Budget Head for the Fund: Fund would be released under the sub-head ‘Subsidies’ under the Major Head ‘Scheme for Implementation of National Manufacturing Policy’. 18. Designated Authority and Disbursement of subsidy/incentives/benefits: (a) Implementation and fund management will be done by Global Innovation & Technology Alliance (GITA), an existing Joint Venture between Government of India and Private Sector and incorporated under Section 25 of the Companies Act, 1956 and promoted by the Technology Development Board (TDB) of the Department of Science & Technology and Confederation of Indian Industry (CII). (b) The claims of the units will be received and processed by GITA on a quarterly basis. (c) Claims which are found to be in order and eligible will be shortlisted and GITA will place such claims before the Green Manufacturing Advisory Committee (GMAC) headed by the Secretary, Department of Industrial Policy and Promotion. The composition of the GMAC is annexed. (d) The GMAC will finalize the beneficiary units and GITA will disburse the subsidy/incentive amount. The inspection and evaluation of the units will be done by the experts empanelled by GMAC. (e) GITA will submit Utilization Certificates on the TADF to Department of Industrial Policy & Promotion (DIPP), Government of India. (f) GITA will separately publish timelines for implementation of the Scheme.

Sd/- (Shubhra Singh) Jt. Secy.

S.O.2580(E) F.No.9/4/2012-MPS Issued by: Ministry of Commerce and Industry (Department of Industrial Policy and Promotion) (Manufacturing Policy Section) New Delhi    

NOTIFICATION

New Delhi, the 1st June, 2012

S.O.1270(E).—In accordance with the provisions contained in Chapter 4 of the National Manufacturing Policy document, the Central Government hereby constitutes a Committee called the Green Manufacturing Committee (GMAC) for matters pertaining to chapter 4 of the Policy on Technology Acquisition and Development Fund (TADF). 2. The Green Manufacturing Committee is constituted as follows:     3. The committee may co-opt, and/or utilize the services of any other expert/agency on a relevant subject, if required. 4. The Terms of Reference of the GMAC are as follows: i. To prescribe objective criteria for categorizing a technology as “clean and green”. The criteria will be consistent with the objective of the national action plan on climate change and the strategy for inclusive sustainable development. The committee may constitute a technical sub-group for the purpose; ii. To review the eligibility criteria annually as technology is dynamic and evolving constantly; iii. to constitute and publicize appropriately, a panel of experts/agencies/environment auditors for the purpose of third party certification; iv. To operate and review the Technology Acquisition and Development Fund. It will formulate guidelines for the operation of the fund and decide on an institutional mechanism for the purpose which would function under its overall supervision; v. To decide upfront for each sector as to how many units with a specific technology in the particular sector will be supported. The Committee may constitute a technical sub-group for the purpose; vi. To formulate guidelines for the developer and industrial/institutional units for rainwater harvesting. The Committee may constitute a technical sub-group for the purpose; vii. To examine all proposals for incentives under Chapter 4 of the National Manufacturing Policy in accordance with the procedures to be laid down by it; viii. To present a quarterly report for the information of the MIPB.

[F.No.9/1/2012-MPS] ANJALI PRASAD, Jt. Secy.