Special Credit Linked Capital Subsidy Scheme (SCLCSS)

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    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:

    Classification

    Micro

    Small

    Medium

    Manufacturing Enterprises and Enterprises rendering Services

    Investment in Plant and Machinery or Equipment:

    Not more than Rs.1 crore and Annual Turnover; not more than Rs. 5 crore

    Investment in Plant and Machinery or Equipment:

    Not more than Rs.10 crore and Annual Turnover; not more than Rs. 50 crore

    Investment in Plant and Machinery or Equipment:

    Not more than Rs.50 crore and Annual Turnover; not more than Rs. 250 crore

    • 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