The government will now provide an additional subsidy to SC/ST entrepreneurs, under the Credit Linked Capital Subsidy Scheme (upCLCSS). This was a scheme introduced to benefit MSMEs and overall help increase their contribution towards the gross domestic product of our country. The aim is to ease the way for technology usage and updation amongst them.
The scheme was relaunched to boost their access to credit and was already providing 15% subsidy on credit, on the purchase of plant and machinery up to Rs.1 crore. However, in the latest move by the government, SC/ST entrepreneurs will be eligible for an additional 15% subsidy to promote technological advancements.
The scheme is said to cover the purchase of all kinds of plant and machinery, with no restrictions on the technologies used. However, an NOC needs to be obtained from the Pollution Control Board. As per the scheme’s guidelines, the beneficiary will also have to remain in commercial production for a period of at least three years, after installation of the eligible plant and machinery, on which the subsidy has been availed.
The subsidy will come from two sources. 15% of which will be from DC MSME and the remaining 10% from the SC/ST hub. So far the demand has been low due to a paucity of technologies used by these MSMEs in non-industrialised areas. Now, with the announcement of this additional subsidy, the government is hoping for better response, especially from ST/SC entrepreneurs.
At the relaunch, Shri Nitin Gadkari, Honourable Union Minister for Micro, Small and Medium Enterprises, said that the scheme is critical in order to increase the MSME contribution in India from 29% to 50%, and export contribution from 40% to 50% over the next five years. The scheme is being implemented through banks at present, and besides the additional subsidy, there have no changes announced in the operation of the scheme.
Athena is a globe-trotter whose aim is to see 30 countries before she’s 30. When she’s not travelling, she’s busy planning her next trip. She’s a Chartered Accountant by profession with a keen focus on GST. She writes by day and reads by night.