SMEs to get subsidy on cloud computing

CIOL Bureau
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NEW DELHI, INDIA: The Centre is planning to introduce a subsidy scheme to encourage small and medium enterprises (SMEs) to make use of modern IT tools like cloud computing in order to improve productivity, said Uday Kumar Varma, secretary in the MSME Ministry.


Varma further said that the Ministry of Micro, Small and Medium Enterprises (MSME) has nearly finalised the scheme in which industry associations will get liberal subsidy.

“I think it is going to be a game-changer. If we are able to create 5-6 successful clouds everybody will emulate,” a news agency report quoted Varma as saying.

Opportunities abound for SMEs to adopt IT

The SMEs can have access to the latest computing technology, data and softwares without investing fortunes in them, through a common grid of a service provider. Cloud computing is catching up fast, especially among those who are not able to afford costly servers.


The MSME secretary said that while the government would provide substantial subsidy for cloud computing to the SMEs, it does not want 'fly by night operators'.

The ministry is banking on the SME associations which will create special purpose vehicles (SPVs) to implement the technology upgradation schemes.

He said the subsidy funds could be released either to the SPVs or directly to the service provider depending on the advice of the Finance Ministry.


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In an another initiative, the Ministry proposes to create a common platform for electronic registration of the MSME entrepreneurs. Although the registration is required to be done at the District Industry Centres under the state governments, the Centre is willing to provide a common platform which can be used for e-filing of registrations.

However, the consent of state governments needs to be taken. “I am quite sanguine that state governments will come forward...this will eliminate delays and corruption,” he added.