Context:
The Ministry of Micro, Small & Medium Enterprises (MSME) has streamlined the process under the Scheme for Promotion and Investment in Circular Economy (SPICE) to encourage material efficiency and green practices in micro and small enterprises (MSEs).
Key Highlights:
- Technology Portal Launched:
- The MSME Ministry has developed a technology portal listing 116 eligible technologies for subsidy support under SPICE.
- This aims to address previous issues of banks rejecting subsidy claims due to lack of clarity on eligible technologies.
- Target:
- The government aims to onboard 3,400 MSEs under SPICE by FY2026-27.
- Eligible Sectors:
- The scheme covers 11 sectors, including plastics, rubber, and electronic waste.
- Subsidy Details:
- Maximum project cost admissible: â‚ą50 lakh
- Subsidy amount: 25% of the plant and machinery cost
- MSEs must apply through banks or Participating Financial Institutions (PFIs).
- Objective:
- To reduce material wastage, promote resource efficiency, and accelerate the adoption of circular economy technologies in small-scale industries.
Scheme for Promotion and Investment in Circular Economy (SPICE)
The MSE-SPICE Scheme (Scheme for Promotion and Investment in Circular Economy) is a flagship initiative by the Government of India to foster sustainable industrial practices in the Micro and Small Enterprises (MSE) sector. It is aligned with India’s broader goal of achieving net-zero emissions by 2070.
Objectives
- Support circular economy (CE) projects in MSEs through credit-linked subsidies.
- Encourage resource efficiency, waste reduction, and recycling technologies.
- Empower MSEs to become environmentally sustainable and climate-resilient.
Scheme Framework
- Credit subsidy-based assistance for eligible MSEs undertaking CE projects.
- Promotes cleaner production, reuse of industrial waste, and low-carbon technologies.
- Part of India’s commitment to the LiFE (Lifestyle for Environment) movement and net-zero roadmap.
