1. Objective

Technology Upgradation.

2. Eligible units

• All new / existing units in SSI sector.
• 21 specified products / sub sectors
• Leather, Food Processing, Information Technology (hardware), Pharmaceuticals, Auto Components, Electronics, Glass/Ceramic, Toys, Tyres, Hardtools, Foundry, Stone industry, Medicinal aromatic plants, Combustion devices / appliances, Gold plating and Jewellery, Common effluent treatment plants, Bio-tech industries, Plastic moulded / extruded products and parts / components and Corrugated boxes.
• SSI units graduating to MSI.

3.Definition of Technology Upgradation

• Induction of state-of-the-art technology
• Significant step-up from the present technology level to a substantially higher one involving improved productivity, quality and environmental conditions.
• Installation of improved packaging techniques, anti-pollution measures and energy conservation machinery.

4. Eligible Proposals

• Eligible proposals sanctioned upto 31.03.2007 or till the time of sanction of capital subsidy reaches Rupees One Hundred crores whichever is earlier.
• Installation of second hand machinery not eligible
• Replacement of existing machinery with the same machinery / technology not eligible

5. Subsidy

15% Capital Subsidy on purchase price of eligible plant and machinery. [w.e.f. 29.09.2005]