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.Â
- 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.Â
Micro, Small and Medium Enterprises (MSMEs)Â
- 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.Â
Source: PIB
