Govt Schemes

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Subsidy for Cloud Computing for ICT Application

The Scheme is for promotion of ICT in MSME Sector

The use of Information and Communication Technologies (ICT) is one of the important measures, which can greatly help MSMEs in almost every facet of their business.


The scheme is revolving around Cloud Computing which is emerging as a cost effective and viable alternative in comparison to in-house IT infrastructure installed by MSMEs. In cloud computing, MSMEs use the internet to access common as well as tailor-made IT infrastructure including software for managing their business processes.


  • Cloud computing is free from the burden of investment on hardware/software and infrastructural facilities. Therefore CAPEX converts into aPEX.
  • It follows "pay as you use" model and the user does not have to invest upfront.
  • The initial cost to use specific services gets reduced substantially.
  • The Cloud Computing operations are readily scalable. The user can access various services depending upon the requirements.
  • The use of Cloud Computing facilitates device and location independent access.
  • Maintenance / updation of Software is not the responsibility of the users.


  • To sensitize and encourage MSMEs towards new approach i.e. Cloud Computing for ICT adoption in their production & business processes with a view to improve their competitiveness in national and international market.
  • Adoption of best practices to improve quality of products and services.
  • To benefit large number of MSMEs in terms of standardizing their business processes, improvement in delivery time, reduction in inventory cost, improvement in productivity and quality of production through cloud computing by reducing the burden of investment on Hardware/Software and Infrastructural activities using Cloud Platform.


For subsidy category, the scheme is open to all Micro & Small Enterprises having valid UAM.

Nature of Assistance

To encourage MSMEs to use Cloud Computing for ICT applications, it is proposed to provide subsidy of Rs. 1 lakh per unit for user charges for a period of 2 years. The benefits accrued through implementing ICT for subsidy period in their enterprises will motivate MSMEs to continue to use the ICT application with their own expenses after this period. Cloud Computing services will be provided in three categories:

  • With Subsidy – Max. Subsidy of Rs. 1 lakh per unit will be disbursed over a period of 2 years to Micro and Small Enterprises
  • Without Subsidy - Services through Cloud at ultra low cost will be offered to the desirous Micro, Small and Medium Enterprises.
  • Market Cost – Services through cloud at Market Cost will be offered to the desirous Micro, Small and Medium Enterprises.

Additional 10% Subsidy will be provided to Women.

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