Technology and Quality Upgradation (TEQUP) Component of National Manufacturing Competitiveness Programme (NMCP)

The Technology and Quality Upgradation (TEQUP) Component of National Manufacturing Competitiveness Programme (NMCP) is a financial assistance program that aims to enhance the competitiveness of small and medium enterprises (MSMEs) in India. It provides subsidies and loans for implementing energy-efficient technologies (EET) and acquiring product certification.

What is the TEQUP?

The TEQUP is a scheme offered by the Ministry of MSME (Micro, Small and Medium Enterprises) to financially assist MSMEs in adopting energy-efficient practices and acquiring product certifications.

Key Objectives of the TEQUP

· Promote Energy Efficiency: Encourage MSMEs to adopt energy-efficient technologies to reduce production costs and greenhouse gas (GHG) emissions.

· Enhance Product Quality: Assist MSMEs in obtaining product certification to national and international standards, improving product quality and marketability.

· Increase Competitiveness: Help MSMEs become more competitive in the domestic and global markets.

Eligibility Criteria for the TEQUP

· MSME Registration: The enterprise must have a valid Udyog Aadhaar Memorandum (UAM) registration.

· Project Eligibility: The EET project should demonstrate a minimum of 15% energy saving capacity, supported by an energy audit report.

· Loan Requirement: The enterprise must secure a loan from SIDBI, designated banks, or other financial institutions for the project.

Benefits of the TEQUP

· Subsidy for EET: Get a subsidy of up to 25% of the project cost, with a maximum limit of Rs. 10 lakh for projects up to Rs. 40 lakh.

· Subsidy for Product Certification: Receive a subsidy of up to 75% of the expenditure incurred for obtaining product certification, with a maximum cap of Rs. 1.5 lakh for national standards and Rs. 2 lakh for international certifications.

· Improved Efficiency: Reduce energy consumption and production costs through energy-efficient technologies.

· Enhanced Product Quality: Gain a competitive edge by acquiring product certifications and demonstrating product quality.

How to Apply for the TEQUP?

1. Prepare Project: Develop a Detailed Project Report (DPR) for the EET project by a qualified energy manager or auditor.

2. Secure Loan: Apply for a loan from SIDBI, designated banks, or financial institutions for the project.

3. Submit Application: Submit the loan application and project documents to the chosen financial institution.

4. SIDBI Approval (if applicable): If the loan is not applied for through SIDBI, forward two copies of the application with loan sanction proof and project viability report to SIDBI for approval.

5. Steering Committee Approval: Await approval from the TEQUP Steering Committee.

6. Loan Agreement: Upon loan sanction, sign a loan agreement with the financial institution.

Documents Required for Application

· Identity Proof: Aadhar card, PAN card, driving license, voter ID, etc.

· Address Proof: Aadhar card, PAN card, passport, utility bill, property tax receipt, etc.

· Project Documents: DPR, energy audit report, loan sanction letter (if applicable).

· Business Documents: Udyog Aadhaar registration, balance sheets, proof of income, PAN card, etc. (specific requirements may vary by lender)

FAQs About the TEQUP

1. What is the maximum subsidy amount for EET projects?
Rs. 10 lakh.

2. What is the minimum energy saving requirement for EET projects?
15%.

3. What is the maximum subsidy for product certification?
Rs. 1.5 lakh (national) or Rs. 2 lakh (international).

4. Who are the eligible borrowers under the TEQUP?
MSMEs with a valid UAM registration.

Why Should You Apply for the TEQUP?

The TEQUP offers a valuable opportunity for MSMEs to improve their energy efficiency, product quality, and overall competitiveness. By reducing production costs and enhancing marketability, the TEQUP can help MSMEs thrive in the domestic and global markets.

Conclusion

The Technology and Quality Upgradation Component (TEQUP) is a crucial initiative by the Government of India to support the growth and development of MSMEs. By providing financial assistance for energy efficiency and product certification, the TEQUP empowers MSMEs to enhance their competitiveness, reduce environmental impact, and contribute significantly to the Indian economy.