Minister of State for Commerce & Industry (I/C), Mrs. Nirmala Sitharaman, launched on 18.11.2015 the Technology Acquisition and Development Fund (TADF) under National Manufacturing Policy being implemented by Department of Industrial Policy & Promotion(DIPP). TADF is a new scheme to facilitate acquisition of Clean, Green & Energy Efficient Technologies, in form of Technology / Customised Products / Specialised Services / Patents / Industrial Design available in the market available in India or globally, by Micro, Small & Medium Enterprises (MSMEs).

While launching this Scheme, the Commerce Minister hoped that the Scheme would facilitate acquisition of clean & green technologies by micro, small and medium units across the sectors and thus, bridge the technological gap at an affordable cost.

The Scheme is conceptualised to catalyse the manufacturing growth in MSME sector to contribute to the national focus of “Make in India”. Under the Scheme which would be implemented through Global Innovation and Technology Alliance (GITA), a joint venture company, support to MSME units is envisaged by the following:

I. Direct Support for Technology Acquisition- Proposals from Indian industry will be invited for reimbursement of 50% of technology transfer fee or ₹ 20 lakhs, whichever is lower,

II. In-direct Support for Technology Acquisition through Patent Pool- Financial support will be provided in acquiring of technology/Patent from across the Globe based on applications received from MSMEs. Technology/Patent will be licensed to selected companies, with a mutually agreed value and the selected companies will get a subsidy of 50% of the mutually agreed value or ₹ 20 lakhs,

III. Technology / Equipment Manufacturing Subsidies: The fund will support, via subsidies, manufacturing of equipment / machines / devices for controlling pollution, reducing energy consumption and water conservation. The manufacturing units will be provided with a subsidy of up to 10% of capital expenditure incurred on new plant & machinery subject to a maximum of ₹ 50 lakhs.

IV. Green Manufacturing – Incentive Scheme: The scheme will facilitate resource conservation activities in industries located in NIMZ through the introduction of incentive/subsidy schemes for energy/ environmental/ water audits, construction of green buildings, implementation of waste treatment facilities and implementation of renewable energy projects through financial support under the TADF.

The guidelines for the Scheme envisage providing assistance to units in MSME sector owned by Indian residents.

Technology acquisition subsidies enable MSMEs to access clean and energy efficient technologies and green manufacturing incentives. Launch of the Technology Acquisition and Development Fund (TADF) creates a scheme under the National Manufacturing Policy, implemented through the Global Innovation and Technology Alliance, to subsidise MSME acquisition of clean, green and energy efficient technologies via direct reimbursement and an indirect patent pool licensing mechanism. The Fund also provides manufacturing subsidies for pollution control and conservation equipment and a Green Manufacturing incentive stream supporting audits, green building works, waste treatment and renewable energy projects for MSMEs owned by Indian residents.