Technology for MSMEs: From 18 centres currently, MSME Ministry is looking to take the number to 153 including 15 centres under construction and 120 new centres that have received required approvals.
Technology for MSMEs: Office of the Development Commissioner (MSME) under the Ministry of MSME has invited bids from Central Public Sector Enterprises (CPSE) as Project Management Consultant (PMC) for helping the government is increasing the number of technology centres called Tool Rooms to boost technology adoption among MSMEs. From 18 centres currently, MSME Ministry is looking to take the number to 153 including 15 centres under construction and 120 new centres that have received required approvals, MSME Secretary Arun Kumar Panda had said in September at a workshop for the adoption of new technologies among MSMEs.
As PMC, the government intends to engage “for planning, design & monitoring of civil infrastructure, procurement of machines, contract management and providing implementation and monitoring support in the establishment of 20 Technology Centres across India at an approximate cost of Rs 3600 crores,” the ministry said in the notice inviting bids.
“This will boost the entrepreneurial mindset and adequately train young entrepreneurs in the next generation of technology. With the help of these additional centres, the Ministry shall seek to solve some of the challenges faced by MSMEs, particularly in the availability of credit and provision of advanced manufacturing technologies along with timely business advisory support services,” Shristi Banka, Founder Partner and CEO of Banka and Banka CFO Services LLP told Financial Express Online.
The last date for submitting the bids online is October 31, 2019. When fully operational, the 153 centres will train around 8 lakh youth in various skills, Panda had said. Tool Rooms Tool Rooms provide for new technologies including CAD/CAM, CNC machining for tooling, vacuum heat treatment, rapid prototyping, etc. “The allocation of Rs 3,600 crore towards aforesaid technological up-gradation and infrastructure development will provide an impetus to the growth of MSMEs will enhance their competitiveness in the global market,” Banka added.
The government had in August this year launched a three-year programme in tie-up with CII to boost technology adoption among MSMEs in India. MSME Minister has also been stressing on MSMEs creating 5 crore jobs in five years in the sector and increase their share to 50 per cent of the GDP in five years. The programme called Tech-Saksham also has partnered with Dell, HP, Intel, Vodafone Idea, WhatsApp and Yes Bank to help MSMEs in overcoming technology challenges.
Importantly, only 5 per cent of the 2,700 MSMEs surveyed by Yes Bank, earlier this year, have fully adopted digital technology that included the use of cloud services, ERP, CRM, account management software, digital banking etc.
There are over 60 million MSMEs in India across various industries and employs more than 111 million people and produces over 8,000 products.