The Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation, which was a very supportive and popular scheme for MSMEs ended on March 31, 2021, must be re-launched with positive modifications to extend the much needed support to the ailing MSME sector, said CA Julfesh Shah, Chairman, COSIA - Vidarbha. In a letter to the Union MSME Ministry, COSIA requested the MSME Minister Narayan Rane to restart the CLCSS scheme at earliest as MSMEs are waiting for it for the last nine months.

 

The primary objective of the Credit Linked Capital Subsidy Scheme for Technology Upgradation is to facilitate technology up-gradation in MSEs by providing an upfront capital subsidy of 15 per cent 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 and 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. List of technologies is available at www.dcmsme.gov.in The scheme is a demand driven one without any upper limit on overall annual spending on the subsidy disbursal. This financial assistance proves to be very helpful for the micro and small industries to improve it’s liquidity, said Shah. Sudarshan Shende, Vice Chairman, COSIA, said that although the scheme has been re-started recently but it is applicable only for the SC/ST category entrepreneur’s MSE units.

 

It needs to be extended overall to all MSE units, he added. Shah said that COSIA suggested that revised scheme shall aim at facilitating technology up-gradation by increasing the existing 15 per cent up front capital subsidy to 25 per cent to MSEs as this 15 per cent is since the advent of the scheme in 2006 and in last 15 years the prices and inflation rates have gone up considerably. Further it should be extended to all MSEs including export units, manufacturing units, agro-based units tiny, khadi, village, coir industrial units etc., on institutional finance availed by them for induction of well established and improved technologies in specified sub-sectors / products approved under the scheme.

 

Pranav Ambaselkar Secretary COSIA said that Micro and Small Enterprises (MSEs) having a valid UAM number can get benefit of prescribed capital subsidy under the scheme but since the scheme is under revision it should be launched soon after obtaining the necessary approvals so that MSE s are not deprived of the benefits.