Q. Why should the Bank take up this work of technology upgradation ?

A. Technology upgradation, a national priority, is needed for :

  • planned growth of Indian Industry

  • preventing obsolescence

  • enhancing global competitiveness and exports

  • energy conservation

* As India's premier Bank, we have a responsibility to contribute to this process.

* This need is particularly seen in the small and medium scale industrial sector, which do not have adequate resources.

* We always have a special interest in SSI sector in which our investment is very large.

* An innovative value-addition to credit dispensation.

* This activity would help improve the quality of our assets; be a strategic support to our efforts to reduce non-performing assets.

Q. What special advantages / capability do you have to take this up?

A. * Our closeness to our SSI customer : through long funding experience.

  • Our Consultancy capability - Officials in Consultancy are Engineers/MBAs/Science/Post Graduates trained in management consultancy

  • Our liaising capability - to identify and work with experts/R&D institutions.

  • Unlike other agencies/consultants, we can offer a comprehensive package :

a) Consultancy

b) Knowing the customer through day-to-day interactions, to tailor-make a technology scheme for him and draw up a business plan appropriate to his capability, market and environment, and

c) Also fund the project and help implement it

  • A wide network of branches with officials experienced in SSI to back this up.

Q. What do you do under this Project?

A. The Project is location and industry specific as designed now

We select an industry cluster, which has

  • a number of similar units in one location (for easy administration)

  • potential for quick technological upgradation

  • a supporting environment

  • (knowledgeable industrialists, technical institutions around etc.) a growth potential

We then,
  • Collect Techno-economic information

  • Survey; sample study; assess technology levels and possible scope for technological upgradation

  • Interact with industrialists and other agencies

  • Arrange a seminar to disseminate information

  • Conduct unit-level studies by experts

  • Evolve a suitable business plan and financial package for each unit

  • Where (Industry-level) product improvement/extension work is indicated and is possible, attempt intervention through support agencies

Q. What is the non-financial support offered by the Bank?

A. * Collect and disseminate information

  • Collect information on the industry through a survey / interaction with other agencies / firms

  • Disseminate information through a Technical Seminar at the centre

Comprehensive consultancy study for individual units

  • Organising resources - both technical and management experts (A special Task force comprising Bank's consultancy cell officials and/or outside experts) - to study individual units and suggest technological and managerial improvements - evolve a business plan appropriate to each unit

Industry /Product level intervention

  • Supporting institutional/group efforts aimed at product development, product standardisation and extension work

Q. What kind of financial assistance is granted to the units under this scheme?

A. All areas of investment necessary for technology upgradation are considered e.g., productivity improvement aids, quality control and testing equipment, special purpose machines, low cost automation, computers, product development, consultancy etc.

Funding is done through :

a) Bank's usual Medium term Loans, with 18 months' start-up period

b) Bank's Equity Fund Scheme. Introduced in 1978 for new units, extended to Uptech units also

Features :
  • Nil Interest

  • Start-up period : 3 years

  • Repayment : 5 to 7 years

  • Amount matches promoter's contribution for new investment in equipment

  • Ceiling of Rs. 1 lac

c) Appropriate Working Capital is sanctioned.

Q. Why are you restricting assistance to an industry to a particular centre?

A. * This maximises impact even with limited resources

  • Spread-effect in like units

  • Easier evaluation of impact

Q. Do you restrict this scheme to units financed by SBI only?

A. * Our efforts are to upgrade the cluster as a whole. However, with the Task force resources being limited, we naturally, restrict it to our own clients.

Q. What is SITARC? What was your grant for? What was done by them?

A. * SITARC (Small Industries' Testing & Research Centre, Coimbatore) is an institution set up by small & medium industrialists in Coimbatore. IDBI have funded them (Rs. 25 lacs) for infrastructure

  • Project assigned by us Design, standardisation and prototype development of pumps. Re-training of Shop-floor personnel in modern foundry and machine shop practices

  • Progress of the Project :

    • Designed and developed three energy and cost effective Pumpsets in the 3 and 5 H.P. category and launched for commercial exploitation by the industry.

  • Re-training of personnel

    • The programme covers all key process areas in foundry, machine shop, assembly and testing methods relevant to the Pumpset industry

    • About 250 workers have been trained. Two manuals in local language, video films etc. have been prepared

Q. Is the impact good at Coimbatore? What has been done?

A. Yes. Successfully completed. The local industrialists have welcomed the project and its impact on the cluster. Statistically

  • 40 units have been studied

  • These schemes have led to an investment of Rs. 6.00 crores in equipment for modernisation.

Funding (Also Bank's business growth)

Term Loans

4.17 crores


Rs. 0.37 crores


Addl. Working Capital

  • Energy Saving

  • Introduction of an improved technology in cupola melting (Divided Blast) : 30% fuel saving, high melt rate and productivity (Cost : Rs.20,000)

  • About 90 are in operation now, saving Rs. 120 lacs in coke alone, in a year.

  • Rapid growth of obtention of ISI (BIS) certification

Kolhapur Modernisation of Auto / Diesel Engine Components
  • Detailed survey of 80 units conducted.46 unit-level studies.

  • Several seminars conducted on Technology, Management, Export, Quality etc.

    • Total investment in modern equipment: Rs. 7.82 crores

    • Our support :

Term Loans

Rs. 5.74 crores


Rs. 0.37 crores


Rs. 1.89 crores

  • Improvements in foundry and machine shop

    • Design of special purpose machines

    • Introduction of CNC retrofits to improve lathe productivity etc.

Palakkad, Kerala
Modernisation of Rice Hullers
  • This is an important agro-based industry; though a lot of process and equipment modernisation has taken place, they have not been adopted by a majority of millers in India (about 1 lac huller mills exist; only about 40,000 modern/modernised rice mills)

  • There is, therefore, an important need to strengthen efforts made in this direction

Q. What is the Project?

A. * Pilot Project, in co-ordination with CSIR

  • Demonstration through 100 units

  • First step modernisation with the addition of a rubber roll sheller. This results in reduction in broken rice, separation of husk and bran with the latter available for commercial use as raw material for solvent extraction of rice bran oil

Q. What is the investment benefit ?

A. * The investment level is small - Rs.30,000 For a huller unit processing upto 3 Tons per day

  • Met by a term loan of Rs. 20,000 from the SBI and a subsidy of Rs. 10,000 from CSIR

  • Impact studies have shown that the 100 demonstration units have increased their income by about Rs.345 per ton of paddy milled resulting in an additional income of Rs. 150 lacs to the district per annum.

Q. How is the response?

A. All the 100 units have implemented the scheme. Most units have gone in for modernisation investment beyond Rs. 30,000, upto Rs. 1.95 lacs (Average : Rs. 98,000) without seeking further subsidy

There is a request for extending the scheme to more mills.

Agra-Ferrous Foundry Project:
  • A dedicated Project Uptech office

  • A survey of 50 units completed

  • Firm-level studies in 23 units were taken up

  • Capital outlay under the scheme: Rs. 351 lacs.


Term Loans

Rs. 275 lacs


Rs. 21 lacs


Rs. 206 lacs

Focus on Pollution Control
  • A demonstration project: Responding to the industry need for standard, proven, pollution control equipment, the Bank has successfully arranged through a partly repayable grant, the design and installation of a Pollution Control equipment on two cupolas at Agra

  • SPM level brought down from 2096 mg/nM3 to 200 mg/nM3 (tests by UP Pollution Control Board)

Firozabad - Glass Industry
  • A Task force comprising Bank's officials, Glass technologists and Management Consultants

  • Detailed firm-level study completed in thirteen cases.

  • Capital outlay Rs. 216 lacs

Funding envisaged

Term Loans

Rs. 173 lacs


Rs. 11 lacs


Rs. 106 lacs

  • Using Central Glass and Ceramic Research Institute, Calcutta, a baseline survey has been conducted

  • Demonstration of energy efficiency through better insulation of furnaces, oil fired furnaces, pollution abatement in coal furnaces

Projects under implementation

Modernisation of the Automobile Component Industry at Pune.

  • Project inauguration and Technical Seminar in January 1996.

  • 44 units taken up for study

  • Investment of Rs.794 lacs recommended

  • Seminars held on a wide range of topics for the benefit of units in the cluster. In these seminars IIM, Bangalore, IIT, Mumbai, Apex Management Consulting Group Pvt. Ltd., etc participated

  • Visits of delegations to CMTI, FESTO Controls, NTTF Bangalore, M/s Polyhydron Pvt. Ltd., Belgaum for acquainting them with modern manufacturing systems.

  • Popularising ISO certification in the cluster and also organisation functions for award distribution under Bank's Quality Support scheme to enthuse others to go in for ISO certification

Modernisation of the Automobile Component Industry at Bangalore
  • Project inauguration and Technical Seminar in August 1996.

    • 20 units taken up for study

    • Investment of Rs. 715 lacs proposed.

    • Seminars and workshops on topics of interest to the cluster organised.

    • Buyer seller meet involving MICO, Ashok Leyland, TVS, BEML, etc. organised.

    • "Uptech Bulletin" a quarterly newsletter being published by the Task Force.

Modernisation of the Foundry industry at Belgaum
  • Demand driven project. Looking at success of Kolhapur project units at Belgaum approached Bangalore circle to launch a project at Belgaum. Launched in October 1997.

  • 40 units financed by the Bank surveyed

  • 14 units studied so far

  • An investment of Rs. 195 lacs recommended

  • 6 seminars on various topics of interest to the cluster conducted.

  • Energy audits conducted in 6 units, result substantial saving in cost of energy.

Modernisation of Sago Cluster at Samalkot
  • A unique project covering manufacturing and agriculture.

  • Planned for a period of 3 years launched in August 1998.

  • Entered in MOU with Central Tuber Crops Research Institute (CTCRI), Thiruvananthapuram for providing technical support.

  • 12 units studied

  • Investment of Rs. 280 lacs recommended

  • Six seminars held for the benefit of the cluster with three seminars involving presentations by equipment manufacturers covering Wet Grinders, DSM Screens, Hydro-cyclone Roaster cum Drier and Water Treatment Plant.

  • Millers visit to Salem, a leading sago cluster, was arranged.

  • Catalytic role in setting up a Co-operative marketing organisation on the lines of Sagoserve existing at Salem

  • Development of prototype of roaster and drier. To be tested by CTCRI.

  • Organised 25 farmers meet with participation from scientists of CTCRI and ANGRAU and Extension Officers for solving their problems.

New Projects taken up
  • Projects taken up in view of the urgent need for modernisation.

  • Modernisation of Machining and Fabrication Cluster at Bhopal

  • Modernisation of Foundry Cluster at Howrah

Projects in the process of being launched
  • Launch of upgradation projects for the Auto component Industry at Jamshedpur

  • Hosiery cluster at Ludhiana

  • Rice milling cluster at Gondia

  • Sago cluster at Salem

  • Coir cluster at Alleppey

Projects on which work is in progress
  • Autocomponents cluster at Faridabad and Gurgaon

  • Rice Milling in Lucknow Circle

  • Tiles at Morvi in Ahmedabad Circle

Q. What are the features of SBI's Quality support scheme SBI PROJECT UPTECH QUALITY SUPPORT SCHEME?

A. To support Small & Medium Enterprises in their endeavours towards achieving ISO certification. Clean term loan upto 85% of cost of consultancy including certification process

An Award of Rs 25000/-(or 25% of cost of certification whichever is less) for those obtaining ISO certification on or after 1-1-96. The award can go upto Rs. 50,000 for exporting units, which export at least 25% of their turnover. The awards were restricted to the first 225 units all over India or Rs 70 lacs. By March 2000 the target has been achieved and 254 units have been given the award of Rs. 70 lacs.

Q. Will the Bank help the units under UPTECH to get foreign technology/ collaboration?

A. Yes, if the technology is relevant and beneficial (generally not so)

Q. Is the Bank charging fees for its services under Project Uptech ?

A. * Free in our first two projects

* A nominal fee of Rs.15,000 per unit at Agra and Firozabad. Enhanced to Rs.30,000 per unit at Pune and Bangalore, Rs. 10,000 per unit at Samalkot project and Rs. 15,000 at Bhopal.


We are a nominated member in national level technological committees, like:

  • Governing Council of the Centre for Development of Glass Industry

  • Project Steering Committee for the UNDP/ GoI Pump Centre at Coimbatore

  • Governing Council of the Process & Product Development Centre, Agra

  • Member of the National Steering committee on cluster development of Ministry of SSI and A&RI of Govt. of India.

Project Uptech has conducted fee-based studies for the GOI and UNDP on :
  • the design of a Development Centre for the steel re-rolling industry at Mandi Gobindgarh, Punjab

  • techno-economic feasibility of Jute Composites for Six units funded by the GOI and UNDP