Friday, 19 May 2017

MoMSME approves Special CLCSS under National SC/ ST Hub for technology upgradation

MoMSME approves Special CLCSS under National SC/ ST Hub for technology upgradation(उन्नयन)

New Delhi, May 18 (KNN) The Ministry of MSME has approved a scheme of Special Credit Linked Capital Subsidy Scheme (SCLCSS) under National SC/ST Hub Scheme to facilitate (facilitate ) 

The Office of Development Commissioner, Ministry of Micro, Small and Medium Enterprises(MSME) would be the implementing agency of this scheme.

Presently, MoMSME is operating a scheme for technology upgradation of Micro & Small Enterprises called the Credit Linked Capital Subsidy Scheme (CLCSS).

CLCSS aims at up-gradation of technology and 15% (subject to maximum of Rs.15.00 lakhs) upfront subsidy on capital investment for technology upgradation is provided to MSEs for modernization of their production equipment (plant and machinery).

Taking note that SC/ST owned MSEs continue with outdated technology and plant & machinery and due to lack of awareness and inadequate finance, the scheme is being extended to SC/ ST entrepreneurs.

The guidelines of SCLCSS acknowledge that the existing CLCSS has been able to benefit negligible number of SC/ST MSEs.

The Public Procurement Policy mandates each Central Ministry/Deptt./PSUs to procure at least 4% of its total annual procurement requirement from SC/ST owned MSEs.

In order to make SC/ST MSEs more participative in the public procurement, it is imperative to promote new enterprises and support the existing enterprises in their expansion.

Hence, a new scheme providing assistance in the form of subsidy for capital investment in plant & machinery, linked to credit, is requirement of the day, said the Ministry.

Further, the guidelines for creation of National SC-ST Hub mandates creating Special Credit Linked Capital Subsidy Scheme (CLCSS) with 25% capital subsidy and overall investment ceiling of Rs.1 crore without any restriction on the sectors or machinery & technology for SC/ST enterprises.

The scheme would cover existing SC/ST MSEs for upgradation or expansion as well as new SC/ST MSEs. It would cover purchase of all plants & machinery without any restriction on the technologies but subject to Consent/NOC from Pollution Control Board.

However, industries covered under RED category as per the Classification of industries for consent management (Schedule- VIII, rules 3(2) and 12 of Ministry of Environment & Forests, Govt. of India) shall not be eligible for subsidy under above scheme.

The scheme shall be applicable only for the purchase of Plant & Machinery eligible for Term Loan from the Prime Lending Institutions (PLIs). It shall be applicable to the eligible enterprises where term loan has been sanctioned by the PLIs on or after the date of notification of the scheme.

The Nodal Agencies approved for CLCSS scheme would act as Nodal Agencies for SCLCSS also.

The Scheme will remain valid till March 31, 2020 subject to availability of funds which means that subsidy to PLIs can be disbursed up to March 31, 2020. Further continuation of the Scheme shall be subject to review/ evaluation. (KNN Bureau)

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