Technology Innovation Programme: (Srijan)
Technology Innovation Programme: (Srijan)
Technology Innovation Programme: (Srijan)
for
TECHNOLOGY
INNOVATION
PROGRAMME
l`tu (SRIJAN)
SIDBI
Technology Information, Forecasting SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Objective
The collaborative programme of TIFAC & SIDBI launched on November 01, 2010, aims at facilitating
development, demonstration and commercialization of technology innovation projects pertaining to
new product or process development to encourage and promote development of capabilities in
MSMEs to innovate and to bring high-risk innovations to the market for opening up opportunities for
business linked with innovations.
MSMEs seeking financial assistance from the Fund for technology innovation projects may send
detailed project proposal either to TIFAC or SIDBI. The technical evaluation of the project proposals
shall be carried out by TIFAC and financial appraisal shall be done by SIDBI. The proposals
recommended both technically & financially shall be considered for sanction towards
implementation by a Project Approval Committee (PAC) consisting of SIDBI and TIFAC officials.
SIDBI will manage the Fund on behalf of TIFAC. The detailed format for submission of proposals may
be downloaded from www.tifac.org.in or www.sidbi.in .
TECHNOLOGY INNOVATION PROGRAMME
About the Scheme
Quantum of assistance Assistance upto 80% of the total project cost, which would normally
be not more than `100.00 lakhs. Higher assistance could be
considered selectively based on innovation content in the projects.
Project Cost Ÿ Capital expenditure e.g. factory shed for the project, plants &
machinery, utilities, testing & quality control equipment etc.
Ÿ Intangibles e.g. patents/ copy rights / R&D / technology transfer
fee / licensing / Marketing / brand building expenses
Ÿ Working capital margin
Ÿ Pre-operative expenses
Ÿ Manpower cost
Ÿ Contingencies / Any other heads required for the project
Upfront Fee Not more than 0.5% of the sanctioned amount + service tax as
applicable for the sanctioned projects only.
Instruments of Finance Secured Term Loan
Rate of Interest Not more than 5% p.a.
Repayment Period Loan repayment period including moratorium should generally be
not more than 6 years from the date of completion of the project.
Security Ÿ First charge on assets (both moveable / immoveable) created / to
be created under the project.
Ÿ First / pari passu / second charge on other assets of the unit
depending upon prior charge created/ to be created
Ÿ Personal guarantees of promoters.
About SIDBI
Small Industries Development Bank of India (SIDBI) was set up on April 02, 1990 under an Act of the
Parliament, functions as the Principal Financial Institution for the promotion, financing and
development of the micro, small and medium Enterprise (MSME) Sector and co-ordinate the
functions of the institutions engaged in similar activities. SIDBI started as refinancing institution, has
emerged as a complete financial solution institution meeting all the financial and capacity building
needs of MSME sector. SIDBI also plays a proactive role of a change agent and engages in such policy
advocacy for MSMEs, as aligned to national priorities. SIDBI gives increasing emphasis on
promotional activities in clusters to foster sustainable development of Indian MSMEs. The activities
shall also be aligned more with the emerging areas such as energy efficiency, climate change, CDM,
green rating, etc. as also those which result in improving the competitiveness of the sector.
TIFAC & SIDBI invite project proposals from MSMEs in the prescribed format,
which can be downloaded from www.tifac.org.in or www.sidbi.in