Special Credit Linked Capital Subsidy Scheme (SCLCSS)

In News

• The Union Minister for Micro, Small and Medium Enterprises (MSME) launched the Special Credit Linked Capital Subsidy Scheme for Service Sector (SCLCSS) at Guwahati.

About SCLCSS

• It aims at promoting entrepreneurship and opportunities for MSMEs in the North-Eastern Region.
• The scheme will help in meeting the technology-related requirements of enterprises in the services sector and has a provision of 25% capital subsidy for procurement of Plant & Machinery and service equipment through institutional credit to the SC-ST MSEs without any sector-specific restrictions on technology upgradation.
• Credit Linked Capital Subsidy Scheme for Technology Upgradation
  • It was launched on 1st October 2000. 
  • 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 up to Rs 1 crore availed by them) for induction of well-established and improved technology in the specified 51 sub-sectors/products approved. 

Micro, Small and Medium Enterprises (MSMEs) 

• According to the recently proposed definition, Micro, Small and Medium Enterprises (MSMEs) will be classified as:

• Importance of MSME:
  • MSME sector plays a significant role in terms of job creation and expanding manufacturing base.
  • Currently, it consists of over 6 crore units employing over 11 crore people.
  • It is a seminal contributor to economic growth with over 30% of contribution to GDP and over 49% of overall exports from India.
  • MSME sector can increase our per capita income and it will help North East Region in its efforts towards encouraging entrepreneurship. 

Source: PIB