Govt Schemes

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Technology and Quality Upgradation (TEQUP) (DC-MSME)

The scheme advocates the use of energy efficient technologies (EETs) in manufacturing units so as to reduce the cost of production and adopt clean development mechanism. The primary objective of this activity is to handhold the MSME clusters in adopting energy efficient processes. The awareness programme will normally be of one day duration with the participation of at least 30 MSMEs.


The first objective of the scheme is to sensitize and encourage the manufacturing MSME sector in India to the use of Energy Efficient Technologies and Manufacturing Processes so as to reduce cost of production and emissions of GHGs.

The second objective of the scheme is to create awareness and encourage the MSMEs to acquire Product Certification/ Licenses from National/ International Bodies.

Salient Feature of the scheme / Objectives

  • To sensitize MSME Sector through conducting Awareness Programmes to adopt Energy Efficient Technologies and acquire Product Certification/ Licenses from National/ International Bodies.
  • To provide Financial Assistance in the form of subsidy to the extent of 25% of the project cost for implementation of Energy Efficient Technology (EET). The maximum amount of subsidy will be Rs. 10 Lakh for project cost of Rs. 40 Lakhs. This activity is implemented through various nodal banks.
  • To provide subsidy to MSME units to the extent of 75% of the actual expenditure incurred by them for obtaining Product Certification Licences. The maximum GoI assistance allowed per MSME is Rs. 1.5 lakh for obtaining licencing/ marking to national standards and Rs. 2.00 lakh for obtaining international Certification.

Nature of assistance

Funding support for organizing training and awareness activities on energy efficiency. Capacity building of MSME clusters for energy efficiency/clean development and related technologies. Funding support of up to 75% for awareness programmes, subject to maximum of Rs 75,000 per programme.
Implementation of energy efficient technologies in MSME units 75% of actual expenditure for cluster level energy audit and preparation of model DPR.
Setting up of Carbon Credit Aggregation Centres. 50% of actual expenditure subject to maximum Rs 1.5 lakh per DPR towards preparation of subsequent detailed project reports for individual MSMEs on EET projects.
Encouraging MSMEs to acquire product certification / licenses from National / International bodies. 75% of the actual expenditure, subject to a maximum Rs 15.
25% of the project cost as subsidy by Government of India, balance amount to be funded through loan from SIDBI/banks/ financial Institutions. MSMEs are required to make the minimum contribution as required by the funding agency.
75% subsidy towards licensing of products to national/ international standards; ceiling Rs 1.5 lakhs for obtaining product licensing/marking to National standards and Rs 2 lakhs for International standards.

Who can apply

Expert organizations like PCRA, BEE,TERI, IITs, NITs etc. or State Govt. agencies like MITCON, GEDA etc., and the autonomous bodies of Central/State Govt are eligible to apply for funding support.

How to apply

Click on Apply Now button below to apply online. or else You can contact your near MSME-DI to apply. Click Here to know the contact details of your nearest MSME-DI.


The incubational support will be provided by Host Institutions, like:

  • Indian Institutes of Technology (IITs)
  • National Institutes of Technology ( NITs)
  • Engineering Colleges
  • Technology Development Centres, Tool Rooms, etc
  • Other recognized R&D&/or Technical Institutes/Centres, Development Institutes of DIP&P in the field of Paper, Rubber, Machine Tools, etc

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