Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Technology Acquisition
65% technology acquisition cost up to ₹50 lakh · Gujarat MSMEs
Gujarat MSMEs that acquire new technology — through licensing or purchase from recognized institutions — to improve their products or processes can get 65% of the cost covered, up to ₹50 lakh. Royalty payments for the first two years of the technology agreement are also included. Obtain prior approval from the MSME Commissionerate before signing the technology MoU, then apply through the Investor Facilitation Portal (ifp.gujarat.gov.in).
About This Scheme
Gujarat MSMEs that acquire new technology — through licensing or purchase from recognized institutions — to improve their products or processes can get 65% of the cost covered, up to ₹50 lakh. Royalty payments for the first two years of the technology agreement are also included. Obtain prior approval from the MSME Commissionerate before signing the technology MoU, then apply through the Investor Facilitation Portal (ifp.gujarat.gov.in).
Full official description
The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state's dynamic MSME sector, which significantly contributes to employment, GDP, and exports. Effective from August 7th, 2020 to August 6th, 2025, this initiative supports entrepreneurs and strengthens MSMEs, making them globally competitive. The component "Assistance for Technology Acquisition" supports enterprises in acquiring appropriate technology from recognized institutions for product or process improvement.
Benefits
- 65% of technology acquisition cost covered, up to ₹50 lakh
- First 2 years of royalty payments under the technology agreement are also eligible
💡 Why Startups Should Care
For manufacturing MSMEs, licensing established technology is often faster and cheaper than in-house R&D. Covering 65% of that cost (up to ₹50 lakh) makes technology upgrades financially viable for businesses that would otherwise stay on outdated processes.
Who Can Apply (Eligibility)
- Must be a Micro, Small, or Medium enterprise (MSME)
- Technology must be acquired from a recognized institution or technology provider
- Must obtain prior approval from the MSME Commissionerate within one year of signing the technology MoU
- Technology must be for product or process improvement — plant, machinery, and equipment purchases are not covered
Exclusions
- Not eligible for purchase of plant, machinery, or equipment
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
- Log in and select the Technology Acquisition component.
- Fill in enterprise details and technology licensing details.
- Upload Udyam/IEM/LOI certificate, constitution of enterprise, and technology transfer agreement.
- Submit the application for reimbursement after cost verification.
Frequently Asked Questions
What is the "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)"?
The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" aims to position Gujarat as a global business destination by promoting sustainable manufacturing, inclusive development, and balanced regional growth.
What is the duration of the scheme?
The scheme is effective from August 7, 2020, and will remain in operation until August 6, 2025.
What is the objective of the component " Assistance for Technology Acquisition"?
The component " Assistance for Technology Acquisition" supports enterprises in acquiring appropriate technology from recognized institutions for product or process improvement.
Who is eligible to apply for this component?
Any new or existing enterprise that acquires technology from a recognized institution for product or process improvement is eligible to apply.
What percentage of the technology acquisition cost is covered under the scheme?
The scheme provides financial assistance covering 65% of the technology acquisition cost, up to a maximum of [?]50,00,000/-, including royalty payments for the first 2 years.
Can an enterprise use the assistance to purchase plant and machinery?
No, the assistance is strictly for acquiring technology and does not cover the purchase of plant, machinery, or equipment.
Is it necessary for an enterprise to obtain prior approval before applying?
Yes, prior approval from the MSME Commissionerate must be obtained within one year of signing the MoU/agreement/contract with the technology provider.
What types of technologies are eligible for assistance under this scheme?
The scheme supports technologies that improve products or processes, including patented technologies from both Indian and foreign companies.
Can an enterprise apply if the technology has already been purchased?
No, enterprises must obtain prior approval before acquiring the technology to be eligible for financial assistance.
Are startups eligible to apply for this scheme?
Yes, startups that meet the eligibility criteria can apply for assistance under this scheme.
Is there any restriction on the technology provider?
Yes, the technology provider must be a recognized institution or a company offering patented technology.
Can an enterprise apply for assistance if it has already been in operation for several years?
Yes, both new and existing enterprises are eligible for assistance under this scheme.
Will an enterprise receive assistance for a technology licensing agreement?
Yes, technology licensing agreements from recognized institutions are eligible for assistance under this scheme.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Copy of Udyam / IEM / LOI registration certificate
- Constitution of enterprise (MOA, partnership deed, etc.)
- Power of attorney / board resolution of authorised signatory
- Signed and stamped MOU or technology transfer agreement