CREDIT LINKED CAPITAL SUBSIDY SCHEME

Recently, the Ministry of Micro, Small and Medium-sized Enterprises (MSMEs) launched the Special Credit Linked Capital Subsidy Scheme (SCLCSS) for the services sector.

Important points:

  • The scheme will help in meeting the technology-related requirements of enterprises in the services sector.
  • It has a provision of 25% capital subsidy for procurement of plant and machinery and service equipment through institutional credit to the Scheduled Caste – Scheduled Tribe MSMEs without any sector-specific restrictions on technology up-gradation.
  • It will facilitate technology up-gradation to MSEs, improvement in Quality of services by MSMEs, enhancement in productivity, reduction in waste and shall promote a culture of continuous improvement.
  • It will also promote the innovation, digital empowerment and design interventions of MSMEs.
  • Credit Linked Capital Subsidy Scheme for Technology Upgradation:
  • It was launched in 2000.
  • The objective of the Scheme is to facilitate technology up-gradation in MSEs by providing an upfront capital subsidy of 15% (on institutional finance of upto Rs 1 crore availed by them) for induction of well-established and improved technology in the specified 51 sub-sectors/products approved.
  • In other words the major objective is to upgrade their plant & machinery with state-of-the-art technology, with or without expansion and also for new MSEs which have set up their facilities with appropriate eligible and proven technology duly approved under scheme guidelines.

SOURCE: THE HINDU,THE ECONOMIC TIMES,MINT

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