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21/09/2016 02:06pm

MSME Ministry forms stakeholder Committee for CLCS scheme

image MSME Ministry forms stakeholder Committee for CLCS scheme

New Delhi, Sep 21 (KNN) The Credit Linked Capital Subsidy Scheme (CLCS), the flagship scheme of the Ministry of MSME, will be reviewed by stake holders every six months to improve its implementation.

According to the office memo issued by the Office of Development Commissioner (MSME), a Stakeholder Committee has been set-up which will be chaired by Additional Secretary and Development Commissioner, Ministry of MSME.

The stakeholders will be represented by national bodies like Federation of Indian Micro and Small & Medium Enterprises (FISME) and Laghu Udyog Bharti (LBU) and chambers such as from North East- NESSIA, Dalit Indian Chamber of Commerce and Industries- DICCI  and representatives from financial institutions and banks such as SIDBI, SBI and NABARD. 

The CLCS scheme was launched in 2000-01 under which 15% capital subsidy- up to maximum limit of Rs. 15 lac,  is provided to the Micro and Small Enterprises for upgrading their technology with the well-established and improved Technology as approved under the scheme.

Up to April 2016, 43953 MSMEs have benefitted from the CLCS scheme and subsidy amounting to Rs. 2600 crores has been disbursed.

According to President FISME Dr. Sangam Kurade, “it is a successful scheme and is evident from the numbers of its beneficiaries also and if a few conceptual and operational issues are addressed the scheme could become more popular and useful for MSMEs”.

Currently only MSEs falling under approved categories can avail of CLCS scheme. Though a mechanism is available whereby MSEs can request inclusion of their sector/ technology of choice, the process is found cumbersome and discouraging to many.   

Further, the scheme is credit linked, that is, benefit is available only when an MSE takes loan and not if it invests its own money for tech-upgradation. Similarly, self-fabricated machines are also not eligible for funding under the scheme. (KNN Bureau)

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