Scheme Name :- Scheme for 'Technology and Quality Up gradation (TEQUP) Support to MSMEs'- an NMCP Scheme

Objective and Brief Description

The scheme advocates the use of energy efficient technologies in manufacturing units so as to reduce cost of production and adopt clean development mechanism.

Who can apply?

  • Expert organizations like PCRA, BEE, TERI, IITs, NITs, etc,
  • State Govt. agencies like MITCON, GEDA, etc,
  • Cluster/Industry based associations of MSMEs
  • NGOs and Technical Institutions

What is funded?

  • Capacity Building of MSME Clusters for Energy Efficiency/Clean Development and related technologies (Applicant -awareness program and model DPRs by expert agencies as mentioned in EOI,
    energy audits , DPRs and EET projects by expert agencies, associations or MSMEs)
  • Implementation of Energy Efficient Technologies (EET) in MSME units (Applicant-registered MSME unit, to be implemented by SIDBI)
  • Setting up of Carbon Credit Aggregation Centers (Association, technical institutions and ESCOs)
  • Encouraging MSMEs to acquire product certification/licenses from National/International bodies

Extent of Funding Support

  • Funding support of 75% for awareness programme subject to the maximum of Rs. 75000 per awareness programme.
  • 75% of actual expenditure for cluster level energy audit and preparation of model DPR
  • 50% of the actual expenditure subject to maximum Rs.1.5 lakh per DPR towards preparation of subsequent detailed project reports (DPRs) for individual MSMEs on EET projects.
  • 25% of the project cost will be provided as subsidy by the Government of India, the balance amount is to be funded through loan from SIDBI/banks/financial institutions. The minimum contribution as required by the funding agency, will have to be made by the MSME unit..
  • 75% of the actual expenditure, subject to a maximum Rs.15 lakh for establishing Carbon Credit Accreditation Centers
  • 75 % subsidy is provided to MSME manufacturing units towards licensing of product to National/International Standards. The maximum GoI assistance allowed per MSME is Rs.1.5 lakh for obtaining product licensing/Marking to National Standards and Rs. 2.0 lakh for obtaining product licensing/Marking to International standards.

Application Procedure

  • Obtain product certification from m National Standardization Bodies (like BIS, BEE, etc.) or International Product Certifications (CE, UL,ANSI, etc.)
  • For the reimbursement of the fees forward application in the specified format (as given in annexure IV of scheme guidelines), to the MSME-DI concerned, alongwith the required documents


Most of the components of the scheme are based on RFP/EOI hence the eligibility criteria and application procedure are specified in the EOI.
A Scheme Steering Committee (SSC) is constituted to monitor the scheme.
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