Government to continue credit linked capital subsidy scheme

Note4Students

Mains Paper 3: Indian Economy | Planning, mobilization of resources, growth, development and employment

From UPSC perspective, the following things are important:

Prelims level: Various initiatives for supporting MSME Sector

Mains level: Facilitating MSMEs in India


News

  • The Central government will continue the “Credit Linked Capital Subsidy and Technology Upgradation Scheme” for micro, small, and medium enterprises (MSMEs) beyond the 12th Plan period for three years from 2017-18 to 2019-20.

CCLS for Technology

  1. The objective of the Scheme 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).
  2. This is provided for induction of well-established and improved technology in the specified 51 sub-sectors/products approved.
  3. The major objective is to upgrade their plant & machinery with state-of-the-art technology, with or without expansion.
  4. The Scheme is a demand driven one without any upper limit on overall annual spending on the subsidy disbursal.

Nature of assistance

  • The revised scheme aims at facilitating technology up-gradation by providing 15% up front capital subsidy to MSEs, including tiny, khadi, village and coir industrial units, on institutional finance availed by them.
Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.
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