AIPMA demands to increase CLCSS subsidy up to 25% and limit upto Rs 5 cr

New Delhi, Apr 17 (KNN) The All India Plastics Manufacturers Associations (AIPMA) has urged the government to expand Credit Linked Capital Subsidy Scheme (CLCSS) to include more capital goods with a raised limit up to Rs 5 crore and subsidy at 25 per cent.

AIPMA submitted suggestions and requests to the Micro, Small and Medium Enterprises (MSMEs) Minister Nitin Gadkari.

''Post Covid-19, new opportunities will emerge for MSME units but they will have constraints to undertake capex. We suggest that the currently operative CLCSS scheme be expanded to include more capital goods with a raised limit Up to 5 crore and subsidy at 25 per cent,'' AIPMA suggested. 

In its suggestion to MSME Minister, AIPMA also said that for time effective disbursements, the modalities of appraisal by nationalized banks be simplified to minimum and three years locking up of the subsidy amount in fixed deposits be done away with to boost liquidity.

''CLCSS benefits should also be given to the units who are not availing Bank loans,'' it added.

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) 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 & 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.