Sops for small companies SPICEd up

New Delhi: The MSME (Micro, Small & Medium Enterprises) ministry has simplified the process for availing incentives under a scheme that supports reduction of material wastage to promote green practices among micro and small enterprises (MSEs).

The ministry, after reviewing the Scheme for Promotion and Investment in Circular Economy (SPICE), has created a technology portal which lists 116 technologies eligible to receive subsidy under the scheme, said an official aware of the development. The measure is important as the government aims to enrol 3400 MSEs under the scheme by FY27.

SPICE encourages the adoption of circular economy technology among MSEs by subsidising a part of the technology acquisition cost.

Smaller enterprises from eleven sectors such as plastic, rubber, and electronic waste, are eligible to apply for a subsidy under the scheme. They need to apply to banks or participating financial institutions (PFIs) to claim a subsidy. Under the scheme, the maximum project cost admissible is Rs 50 lakh, with a 25% subsidy on the cost of plant and machinery only.

"As part of the technology portal, the ministry has identified 116 technologies eligible for subsidies under SPICE," said the official.

The detailed listing of technologies was important as earlier banks would reject applications due to lack of proper information on these.