05 December 2019

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Cloud computing to get Subsidy for SMEs

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Government will provide liberal subsidy to the SMEs for using modern IT tools like cloud computing and improving their performance. This was said by the secretary of MSME Ministry, Uday Kumar Varma. 

The Ministry of Micro, Small and Medium Enterprises (MSME) has "Almost finalised the scheme in which subsidy on cloud computing will be given to industry associations. I think it is going to be a game-changer." Varma mentioned.

The SMEs can have access to the latest computing technology, data and softwares without investing fortunes in them, through a common grid of a service provider. 

The cloud computing is catching up fast, especially among those who cannot afford costly servers. 

The MSME secretary said that while the government would provide substantial subsidy for cloud computing to the SMEs, it does not want "fly by night operators". 

The Ministry is banking on the SME associations which will create special purpose vehicles (SPVs) to implement the technology upgradation schemes. 

He said the subsidy funds could be released either to the SPVs or directly to the service provider depending on the advice of the Finance Ministry. 

In an another initiative, the Ministry proposes to create a common platform for electronic registration of the MSME entrepreneurs. 

Although the registration is required to be done at the District Industry Centres under the state governments, the Centre is willing to provide a common platform which can be used for e-filing of registrations. 

However, the consent of state governments needs to be taken. "I am quite sanguine that state governments will come forward. This will eliminate delays and corruption," he added. 

There are 26 million enterprises which employ almost 60 million people in the labour-intensive sector. 

The MSME sector contributes over 45 per cent to the country's industrial production and around 40 per cent to the total exports.



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