The Centre has proposed subsidy up to Rs 1 Lakh for micro and small enterprises to encourage to use cloud computing for information and communications technology applications.
In Cloud computing MSMEs use Internet to access common as well as tailor-made IT infrastructure, including software, for managing business. The subsidy will be provided on user charges for two years.
The proposals are part of the modified guidance lines of the scheme for Promotion of the Information and Communication Technology in MSME.
It centres around cloud computing which is emerging as a cost-effective and viable alternative compared to in-house IT infrastructure. The benefits that accrued through implementing information and communications technology for subsidy period in their enterprises will motivate MSMEs to continue to use the ICT application with their own expenses after this period, the MSMEs ministry said.
The subsidy will be disbursed through the direct benefit transfer route. The MSMEs initially will make a full payment to the service provider. The office of the development commissioner MSMEs will disburse funds to Telecommunications Consultants India, which in turn will transfer it to the account of MSMEs.
Source: Deccan Chronicle