CCEA approves Rs 2,900 Cr for Credit Linked Capital Subsidy and Technology Upgradation Scheme for MSMEs
The Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCSTUS) was approved by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, for the next three years, with a total outlay of Rs 2,900 crore, said a government release.
The scheme aims to boost the competitiveness of MSMEs by integrating ongoing technology upgradation efforts with the Credit Linked Capital Subsidy (CLCS), hand-holding zero defect zero effect manufacturing (ZED), increasing productivity through waste reduction, design intervention, cloud computing, facilitation of intellectual property, and nurturing new ideas.
The release added that special provisions have been made in this scheme to promote entrepreneurship for SC/STs and women-led SMEs, and focusing on hill states such as Jammu and Kashmir, Himachal Pradesh and Uttarakhand, island territories such as Andaman and Nicobar Islands and Lakshadweep, and the aspirational districts.
In these cases, the subsidy will also be admissible for investment in acquisition or replacement of plant and machinery or equipment, and technology upgradation of any kind.
Further, the scheme will also promote the reduction of greenhouse gas emissions and improve competitiveness through reduction in defects and wastage during the manufacturing process of products, said the release. It will also promote digital empowerment, design interventions, and support the protection of intellectual property of MSMEs.
During an event this week, Arun Kumar Panda, Secretary, MSME, had said that timely availability of low-cost capital, technology upgradation to make MSMEs competitive, market accessibility, and skilled manpower were the core components for the development of the sector.
“I urge MSMEs to avail the benefits of various schemes of the ministry like Credit Linked Capital Subsidy for Technology Upgradation (CLCSS), Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTSME), Prime Minister’s Employment Generation Programme (PMEGP), Lean Manufacturing Competitiveness for MSMEs, and Financial Support to MSMEs in ZED Certification Scheme,” Panda had said.