The competitiveness of the products of SSI units both in the domestic and international markets is dependent to a large extent on their productivity levels, price factors and quality charachetristics. SIDBI's technology upgardation and modernisation programme is aimed at improving the technical capabilities and competitiveness of SSI units in clusters by introducing commercial proven technologies which will result in significant improvement in quality, productivity, bring about cost reduction, saving of energy and raw materials and reduction in the level of pollution.

SIDBI's efforts broadly aim at:

• Creation of awareness on new product / process technologies
• Skill upgradation
• Development of technology related common facilities for the cluster
• Provision of unit-specific modernisation package
• Energy conservation and introduction of environment friendly technologies
• Quality upgradation in terms of systems and products
  

The first step involves the selection of clusters, which have certain homogeneity in terms of status of technology, products, production levels, trade practices, and capacity to absorb improved technology. Individual clusters are then assigned to expert consultancy agencies that assess the technology upgradation needs and prepare unit-specific modernisation packages including scope for consolidation of technical capabilities of existing units.

The implementing agencies are suitably compensated by way of professional fee for undertaking the assignment