Subsidy for MSMEs to help deploy cloud computing

To promote the use of cloud computing amongst small enterprises, the government is planning to introduce a subsidy upto Rs 1 lakh so that small companies can deploy cloud for information and communications technology applications.

This subsidy will be provided on user charges for two years under the scheme for ‘Promotion of Information and Communication Technology in Micro, Small and Medium Enterprises (MSMEs) Sector’. MSMEs can use cloud computing for managing business effectively since it provides tailor made infrastructure, including software to the companies.

“The benefits that accrued through implementing information and communications technology (ICT) for subsidy period in their enterprises will motivate MSMEs to continue to use the ICT application with their own expenses after this period,” the MSME ministry said in the draft guidelines.

The subsidy will be provided through direct benefit transfer route. The MSMEs initially will make a full payment to the service provider. The office of the development commissioner MSME will disburse funds to Telecommunications Consultants India Ltd (TCIL), which in turn will transfer it to the account of MSMEs.