Technology for MSMEs: The Office of the Development Commissioner (DC) under the MSME ministry, which assists the latter in formulating, coordinating, implementing and monitoring different MSME policies, is looking to engage a central public sector enterprise (CPSE) as a nodal agency to expand the number of technology centres and extension centres across the country under the scheme Establishment of New Technology Centres/Extension Centres (TC/EC).
In a request for proposal, the DC office said it “intends to engage a CPSE to work as a Nodal Agency for the establishment of new Technology Centres (TCs) and Extension Centres (ECs) on a turnkey basis.” ECs are a smaller version of TCs and essentially an extension of a TC of a particular sector.
The work included preparation of DPRs (detailed project reports), planning, design, construction and monitoring of civil infrastructure, procurement of machines and equipment, management of Contracts, implementation support to the office of DC (MSME) including monitoring and supervision, the proposal read. The last date for bid submission is May 8, 2023.
Engagement of the nodal agency will be for three years with provisions for a further extension as per the need of the project. The estimated value of the total project is Rs 2,920 crore even as the actual project cost will vary due to variation in the cost of each TC/EC based on various factors including location and sector of the TC/EC, according to the tender document.
Currently, there are 18 TCs, established between 1967 and 1999, of which 10 provide technological support to industries through the design and manufacture of tools, precision components, moulds, dies, etc., while the remaining eight TCs provide technical services to develop and upgrade technologies, processes and products to MSMEs apart from training in the specific product categories such as forging & foundry, electronics, electrical measuring instruments, fragrance & flavour, glass, footwear & sports goods, according to the MSME ministry’s FY23 annual report.
In order to enhance the capacity and network of TCs, the government is currently developing 15 new TCs at an estimated cost of $400 million including funding from the World Bank of $200 million.
However, “It may be noted that even with the increased network of 33 TCs across India, there will be on average one/two TCs in a state and large numbers of MSMEs will remain unserved even in major industrial areas, leave aside smaller cities and rural areas. In some industrially developed countries there is about 1 TC (including equivalent institutes and labs) per 30,000 MSMEs, whereas in India this ratio is about 1 TC per 2,65,000 MSMEs,” the document said.
Hence, to further expand the TCs network, the government is setting up another 20 new TCs and 100 ECs at a cost of about Rs 3,500 crores. This was approved by the Cabinet Committee on Economic Affairs (CCEA) in November 2018. With the new and existing TCs and ECs, the total count of all centres will reach 190.
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