New Delhi, Mar 11 (KNN) The Central Government has decided to continue the Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS-TUS) with a total outlay of Rs. 2900 crore beyond 12th Plan for three years from 2017-18 to 2019-20 recommended by the Expenditure Finance Committee (EFC).

CLCS-TUS is conceived as an umbrella programme of the government.

Under CLCS-TUS there will be 7 components - Credit Linked Capital Subsidy (CLCS); Financial Support to MSMEs in ZED Certification; Lean Manufacturing Competitiveness; Design expertise to manufacturing MSME sector; Digital MSME; Building Awareness on Intellectual Property Rights (IPR); and Support for Entrepreneurial and Managerial Development of SMEs through Incubators.

The scheme will facilitate technology up-gradation to MSEs, improvement in quality of products by MSMEs, enhancement in productivity, reduction in waste and shall promote a culture of continuous improvement.

Credit Linked Capital Subsidy

Under the Credit Linked Capital Subsidy, the MSEs will be facilitate with technology up-gradation through institutional finance for induction of well-established and proven technologies in the specified sub-sector / products approved under the scheme.

An upfront subsidy of 15% will be provided on institutional credit up to Rs. 1 crore (i.e. a subsidy cap of Rs.15.00 lakh) for identified sectors /subsectors/ technologies.

In order to ensure fair inclusion of SC/ST category, women entrepreneurs and entrepreneurs  from  NER, Hill states (Jammu & Kashmir,  Himachal  Pradesh  & Uttarakhand) island territories (Andaman & Nicobar and Lakshadweep) and the identified Aspirational Districts/ LWE Districts, the subsidy has also been proposed to be admissible also for investment in acquisition /replacement of plant & machinery /equipments & technology up-gradation of any kind.

Financial Support to MEMEs in ZED Certification

Under the Financial Support to MEMEs in ZED Certification, handholding support will be given based on online self-assessment, provision of Rs.5.00 lakh for Gap analysis, Handhold in g, consultancy.

Development / pilot project implementation of Technology.

Lean Manufacturing Competitiveness (LMC):

The main objective of LMC is to enhance manufacturing competitiveness of MSMEs through the application of various Lean Manufacturing Techniques by reducing wastes, increasing productivity and introducing innovative practices for improving the competitiveness.

A mini cluster ideally of 10 units i.e., Special Purpose Vehicle (SPV) is formed for Lean interventions at unit level.

There is a provision of financial assistance upto Rs. 36.00 lakh (max.) per minicluster. For a period of 18 months or till completion (GoI: Unit:: 80:20) is paid to Lean Manufacturing Consultant for intervention of Lean Techniques in the unit.

Design Expertise for manufacturing MSME sector:

The objective of this component is to enhance industry understanding and application of design to promote design as a value adding activity and integrate it into the main stream business and industrial processes of MSMEs.

Under the scheme, the MSMEs will be facilitated to develop new Design strategies and or design related products through design interventions and consultancy. GoI’s contribution will be @ 75% for micro, 60% for SMEs for the project range Rs. 15 lakh to Rs. 40 lakh.

Students in the final year of Under Graduate (UG) / Post Graduate (PG) programmes from institutions recognized under the scheme arc eligible under this activities for the project work done for respective MSMEs. GoI’s contribution will be @ 75% for the project cost of Rs. 2 lakh.

Digital MSME:

The prime objective of the scheme is to motivate MSMEs to adopt information and communication technology tools/ applications in their production and business processes in order to make them Digitally Empowered. Following major activities are proposed:

The scheme would help in development   of e-Portal, software /  apps etc to make MSMEs digitally empowered.

Building Awareness on Intellectual Property Rights (IPR) for MSMEs:

The objective of the scheme is to enhance awareness of MSMEs about intellectual property rights to take measures for protecting their ideas and business strategies.

The Gol Assistance for Patent / GI Registration/Trade Mark will be given as under:

Domestic Patent Foreign Patent GI Registration Trade Mark:

  -  1.00 lakh

  -  5.00 lakh

  -  2.00 lakh

  -  0. l0 lakh

Patent reimbursement of 100% (actual costs); 50% on grant at filing & 50% on grant of

patent) will be given.

Support for Entrepreneurial and Managerial Development of MSMEs through Incubators:

Under this, the Host Institution(HI)/Business Incubator(BI) may get financial assistance @ up to Rs.15.00 lakh per idea. HI/BI may be given financial assistance up to Rs. 1.00 crore for purchasing plant and machinery in order to strengthen their R & D capabilities.

HI/Bl may be given financial assistance up to Rs. 1.00 crore as SEED capital support for supporting deserving ideas for Start Ups(@ Rs. 20.00 lakh per start up).

Meanwhile, the Office Memorandum said that the above issues with the approval of competent authority. (KNN Bureau)