Who: Technology Acquisition & Development Fund
What: Launched by Union Government
When: 18 November 2015
Union Government on 18 November 2015 launched the Technology Acquisition and Development Fund (TADF) under the National Manufacturing Policy, 2011. The TADF was launched by Minister of State for Commerce & Industry Nirmala Sitharaman.
The fund will facilitate acquisition of clean, green and energy efficient technologies. It will also catalyse the manufacturing growth in Micro, Small & Medium Enterprises (MSME) sector with an aim to contribute to ‘Make in India’ initiative.
The scheme will be implemented through Global Innovation and Technology Alliance (GITA), a joint venture company. GITA was launched in 2007-08 by CII and Department of Science & Technology to stimulate private sector’s investment in R&D.
How the TADF Scheme will support MSME?
Direct Support for Technology Acquisition: Proposals from Indian industry will be invited for reimbursement of 50 percent of technology transfer fee or 20 lakh rupees, whichever is lower.
In-direct Support for Technology Acquisition through Patent Pool:Financial support will be provided in acquiring of patent from across the globe based on applications received from MSMEs. Technology/Patent will be licensed to selected companies and the selected companies will get a subsidy of 50 percent of the mutually agreed value or 20 lakh rupees.
Technology/Equipment Manufacturing Subsidies: The fund will support manufacturing of equipment for controlling pollution, reducing energy consumption and water conservation. The manufacturing units will be provided with a subsidy of up to 10 percent of capital expenditure & machinery subject to a maximum of 50 lakh rupees.
Green Manufacturing–Incentive Scheme: The scheme will facilitate resource conservation activities in industries located in National Investment and Manufacturing Zone (NIMZ). It will be done through the introduction of incentive/subsidy schemes for energy or water audits, construction of green buildings, and implementation of waste treatment facilities through financial support under the TADF.
About National Manufacturing Policy 2011
The National Manufacturing Policy was notified by the Department of Industrial Policy and Promotion (DIPP) on 4 November 2011. The main objectives of the Policy are:
• To enhance the share of manufacturing in Gross Dosmestic Product to 25% by 2022.
• Increase manufacturing sector to growth to 12-14% in medium term to make it an engine of growth.
• Increase the rate of job creation in manufacturing to create 100 million additional jobs by 2022