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Industry Body Seeks Revival Of Credit Linked Subsidy Scheme For Micro And Small Units

The scheme provided an upfront capital subsidy of 15% subject to a maximum amount of Rs 15 lakh on institutional finance availed by the enterprises.

<div class="paragraphs"><p>Image by rawpixel.com on Freepik</p></div>
Image by rawpixel.com on Freepik

Industry body PHDCCI has approached the government, seeking the reintroduction of the Scheme to facilitate the technology upgradation of micro and small enterprises.

The scheme provided an upfront capital subsidy of 15%, subject to a maximum amount of Rs 15 lakh on institutional finance availed by the enterprises for the induction of well-established and improved technology in the specified 51 sub-sectors and products. It was valid till 2019-20 and was discontinued thereafter.

President of PHD Chamber of Commerce and Industry Saket Dalmia took up the issue in a letter to Union Minister for Micro Small and Medium Enterprises Narayan Rane last week.

"We have been receiving feedback from our MSME members requesting us to take up the issue with the government for the revival and reintroduction of the scheme, as MSMEs still need this kind of financial support. We, therefore, earnestly request your good self to kindly look into this matter and initiate necessary measures for the reintroduction of Credit Linked Capital Subsidy Scheme for technology upgradation in MSMEs," Dalmia said.

He argued that technology upgradation in MSMEs is highly desirable to improve efficiency and scale up their production capacities to achieve not only global competitiveness but also import substitution, particularly in sectors like defence, railways, electronics and communications, pharmaceuticals, among others.

"In this regard, the previous CLCSS scheme was proving to be very helpful for the growth of MSMEs," the chamber's president said in the letter to the minister.

The major objective of the CLCSS was to upgrade plants and machinery with state-of-the-art technology, with or without expansion, and also for new MSEs that were setting up their facilities with appropriate and proven technology duly approved under the scheme guidelines.