CREDIT LINKED CAPITAL SUBSIDY SCHEME
Credit linked capital subsidy scheme means it links subsidy only with availing credit facility. This scheme is only for those entrepreneurs that have to expand their enterprise for technology up-gradation, increase production, productivity, quality of products, and packaging up-gradation installation of pollution control equipment. They have to go on the finance scheme to expand their enterprise for technology up-gradation, increase production, productivity, quality of products, and packaging up-gradation, and technology up-gradation, installation of pollution control equipment. Today technology has become the basic need of human life, it is required by every field of our life. But for the betterment of our life, it demands to be updated with current technology. Whereas the manufacturing/producing sector is concerned, today it is suffering from a lack of the latest technology of the current age. It requires the updated technology for this sector for quality production, increases productivity, installation of pollution control equipment, quality packaging, to improve the quality and capacity of products, the capability of productions to meet the modern age demands of customers, and to meet the global competitions. Production and service sectors play a vital role in the country’s development’s economy.
Here enabling the latest technology may be a lack of finance. We cannot undertake funds from public financing. It should update the products and services provided technology with today’s tune.
CLCSS for Indian Entrepreneur
Today Indian production and service sector is suffering from a lack of the latest technology, lack of skill management, lack of hiring skilled manpower. Considering this, to meet this blackness and complete global competitions, MSME has launched a subsidiary scheme for providing technology up-gradation, packaging up-gradation, improving production capacity and capability, improving the pollution controlling systems, and for the betterment of service sectors.
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Indian entrepreneur is suffering from lack of current technology, skilled manpower, lack of awareness among entrepreneurs on products, productions and production cost, lack of managerial skills and poor adaptability to change trade, and trends. Productivity creates competitions by which the entrepreneur uses its skill human, capital, and natural resources. The development of technology in the productive sector will be important to improve product quality and complete the competitions. Poor technology affects it’s all these things. India Govt. has well assessed these all things and trying to develop skilled human resources, current technology, production, and productivity so that Indian entrepreneurs may face the global meet. This is the reason, and keeping in mind, India’s Govt. has launched a scheme named CLCSS.
Meaning of CLCSS
The MSME department of India Govt. has launched an up-front capital subsidy scheme for Micro, Small and Medium enterprises called Credit Linked Capital Subsidy to attract private capital. The name of the scheme directly shows its aims- SUBSIDY LINKED WITH CREDIT CAPITAL WHICH WILL BE FOR THE PURPOSE OF TECHNOLOGY UP-GRADATION. This scheme will facilitate subsidy @ 15% to the said enterprises for its technology up-gradation against loans disbursed by any financial institutions. The maximum amount of subsidy will be Rs. 15.00 lakhs. Actually, this scheme was launched in the year-2000. U. K. Sinha committee studied the Scheme. RBI also approved the recommendations and amendments raised by the U.K. Sinha committee. The MSME Minister Mr. Nitin Gadkari has announced to prepare a final report on U. K. Sinha’s recommendations and RBI suggestions as soon as possible.
MSME Minister Mr. Nitin Gadkari said that this revised scheme will play a vital role to increase domestic products from 29 percent to 50 percent and also 40 percent to 50 percent of the export potentials.
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The cabinet committee on economic affairs held last February has approved a sum of Rs.2,900.00 crore for the scheme Credit Linked Capital Subsidy. it has been approved this scheme only for 51 sectors/subsectors. The MSME Minister said that it has provided an extra 10 percent to SC/ST entrepreneurs covering under special provisions. He specially said that a committee formed will look at the delayed payments in the MSME secretary.
The MSME Minister said that the companies registered under the companies act 2013 having ATO above 500 crores and central public sector enterprises will also come to this platform.
OBJECTIVES of the Credit Linked Capital Subsidy Scheme
To provide the facility of subsidy to well-established enterprises for up-gradation of its Technology with or without expansion of the enterprise for technology up-gradation, increase production, productivity, quality of products, and packaging up-gradation installation of pollution control equipment.
With new MSME an enterprise that has set up its facilities with appropriate and proved the technology, approved as per scheme guidelines are eligible for.
This scheme will be applied only to the selected category of Micro, Small and Medium enterprises
Capital investment in approved plant and machinery for technology up-gradation and others as mentioned should be a maximum of 1.00 crore.
The MSME units including the Tiny industry, the Khadi industry, the COIR industry, and the Village industry can avail of this facility.
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This facility can be availed by running enterprises to improve product quality, to improve environmental conditions, work environment, to install new technology for quality packaging, new technology for energy conservation, a measure of anti-pollution environments, and online quality control equipment.
The facility is specified for 51 sub-sectors/products approved.
How to apply for the CLCSS
It has been launched A web portal on 01/10/2013 for the applicant tracking system. The finance lending institutions will claim under the CLCSS. After application filling and completing all formalities, DC MSMEwill disburse the subsidy to the lending agencies on approval and availability of funds.
List of Technologies and nodal agencies are available at www.dcmsme.gov.in