Special Credit Linked Capital Subsidy Scheme (SCLCSS) for Services Sector:
Why in the news?
Recently, the Ministry of Micro, Small and Medium-sized Enterprises (MSMEs) launched the Special Credit Linked Capital Subsidy Scheme (SCLCSS) for the services sector.
- It was launched by Union Minister for MSME, Shri Narayan Rane.
- The scheme aims to help in meeting the technology related requirements of enterprises in the services sector.
- It will facilitate technology up-gradation to MSEs, improvement in Quality of services by MSMEs, enhancement in productivity, reduction in waste and shall promote a culture of continuous improvement.
- It will also promote the innovation, digital empowerment and design interventions of MSMEs.
- Under the scheme, there is a provision of 25% capital subsidy for procurement of plant and machinery and service equipment.
- Subsidy is to be given via institutional credit to the SC/ST micro and small enterprises (MSEs) without any sector specific restrictions on technology degradation.
Special Credit Linked Capital Subsidy Scheme (SCLCSS):
- It was launched in 2000.
- The objective of the Scheme is to facilitate technology up-gradation in MSMEs 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.
- 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.
Why Need for this scheme?
- Modern business and the MSMEs may lose out on the business and economic gain if their products are not modern or in tune with the latest technology.
- Hence, the Indian Government’s Credit Linked Capital Subsidy Scheme for MSMEs provides them with an easy source of finance at very affordable rates and allows them to build up a modernized production & assembly line.
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