New Delhi:(IANS) The government is providing a 15 percent capital subsidy to micro, small and medium enterprises (MSME) on loans upto Rs.1 crore to acquire modern technology, parliament was told on Thursday.

“Many MSME units are using outdated and conventional technologies because of lack of sufficient finance, lack of access to modern technology, absence of in-house research & development and others,” MSME Minister Kalraj Mishra told the Rajya Sabha in a written reply.

He said his ministry is implementing a Credit Linked Capital Subsidy Scheme under which MSME units enjoy a 15 percent capital subsidy on a loan upto Rs.1 crore to acquire modern technology.

“There is urgent need to develop appropriate technologies for various manufacturing processes to bring down cost,” he said.

Mishra said a National Manufacturing Competitiveness Programme has also been launched to encourage MSMEs in the country to upgrade their technology, while the ministry has established 18 Technology Centres to provide technological support.