TEQUP FAQ

TEQUP -FREQUENTLY ASKED QUESTIONS (FAQs) RELATED TO TEQUP

Q1. What is TEQUP?

Ans.It is the acronym for Scheme for Technology and Quality Upgradation Support to Micro, Small and Medium Enterprises (TEQUP).The basic objective of the scheme is to enhance competitiveness of the MSME sector through implementation of Energy Efficiency projects.

Q2.When TEQUP was launched?

Ans.The Scheme was launched by the Ministry of MSME(MOMSME), GoI in the financial year 2011-12.

Q3.What are the financial parameters of the TEQUP?

Ans.Under the scheme, Grant to the extent of 25% of the project cost for implementation of Energy Efficient Technologies (EET) subject to maximum of`10 lakh is provided.

Q4. Which are the Nodal agencies for implementation of TEQUP?

Ans:Currently, apart from Small Industries Development Bank of India(SIDBI) as the Nodal agency for TEQUP; State Bank of India, State Bank of Bikaner and Jaipur, Bank of Baroda, Canara Bank Punjab National Bankand Bank of India have been identified as the nodal banks for implementation of the TEQUP .

Q5. How can I get benefit under the Scheme?

Ans. If you are an MSME and want to upgrade the technology of manufacturing the product through institutional finance, then you have to approach the concerned nodal bank/eligible financial institution for loan. After sanction of loan if the unit desires to avail subsidy, an Energy audit is to be conducted, the report of which is to be enclosed alongwith the application of subsidy to GoI( through the Nodal agency/Nodal Bank)for sanction. Once sanctioned, subsidy will be disbursed on completion of disbursement formalities.

Q6.What are the term & conditions for release of subsidy under the TEQUP?

Ans:On approval from GoI and release of funds, subsidy will be released by SIDBI, to those units who have availed term loan from banks/FI under the scheme, after (i) the installation of new machinery and equipment at factory site (ii) execution of the agreement on behalf of the Government of India and (iii) the industrial unit furnishes a Energy Audit Report from a qualified energy auditor that the new machinery and equipment installed are giving a minimum of 15% energy savings over the baseline(the Energy Audit Report have to be mandatorily submitted before the sanction to O/oDC(MSME)..

Q7. What is the mechanism for disbursement of subsidy to the unit?

Ans. The disbursement is effected by the concerned SIDBI BO/ PLI to the beneficiary’s adhaar seeded account.

Q8.What are the new steps taken by the Ministry for effective implementation of TEQUP?

Ans.The Ministry of MSME is considering fine-tuning the process flow under theScheme in tandem with Credit Linked Capital subsidy Scheme for effective implementation apart from developing E-portal for computerization of the scheme.

Q9. Whether individual MSMEs can directly apply for subsidy?

Ans.No, onlythe concerned nodalbank & GSC, SIDBIwill forward the application to Office of Development Commissioner (MSME). For PLIs, application should be forwarded to SIDBI through their respective Nodal office.

Q11. What is the time limit for applying for subsidy?

Ans.As per the GoI’s Office Memorandum dated 19.12.2016, the following timeline has been advised:

From 01.01.2017 onwards ,Nodal Banks will forward the cases of EET subsidy to O/oDC(MSME) with Energy Auditor Report only.

(i)The Nodal Bank will obtain the Energy Auditor Report from the unit within 5 months from the date of disbursement of loan for procurement of EET machinery i.e within 5 months the unit has to procure and install the machine and get it audited through Authorized Energy Auditor and submit the report to Nodal Bank.

(ii)Nodal bank will submit the application along with Energy Auditor Report within 6 months from the date of disbursement of loan for procurement of EET machinery.O/oDc(MSME) will consider these cases subject to availability of funds.

(iii)Under TEQUP scheme, OnlyBEE authorized Energy Auditor/Managers/Agencies will be eligible to issue Energy Audit Report for this purpose. It is mandatory for Energy Auditor to enclose copy of his BEE certificate along with Energy Audit Report.

Q12. Is there any web-site where from I can get more details of the TEQUP?

Ans.Yes; the detailed guidelines are available at Web-site the tab Technology UpgradationNational Manufacturing Competitiveness Programme (NMCP).

IMPORANT

  1. The above process flow may be seen in conjunction with the instructions/guidelines issued by GoI from time to time(website.
  1. GoI is the final authority forall the subsidy related matters including sanction/rejection of subsidy scheme to any unit for all the schemes including TEQUP and GSC , SIDBI is only the nodal agency.

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