Catalyst For MSEs Of India
Our country and its economy are of diverse nature. Various sectors contribute to and make up the economy in their respective ways. Government has to focus on the specific needs of all the sectors to promote holistic growth of the economy. This country is striving towards growing into a self-reliant economy as well. Hence, the developmental measures are in accordance with the spirit of the Atma Nirbhar Bharat Mission.
An economy needs to have a strong base of innovative startups and MSEs in order to suffice the demands and needs with in-house production. The focus is on the MSE sector now and thus, impetus and encouragement are provided by the government for the same. Government launches grants and funding schemes to assist this sector financially. The Ministry of Micro, Small, and Medium Enterprises has launched a special Credit Linked Capital Subsidy Scheme on the same lines.
What is CLCSS Scheme?
The CLCSS full form is Credit Linked Capital Subsidy Scheme. This scheme is aimed to provide facilitation for the technological elevation in the MSEs sector and primarily focuses on the growth and development of Small Businesses and Industries in both rural and urban areas.
The scheme provides a capital subsidy for technological upgradation. A 15% capital subsidy is provided up to a maximum of Rs. 15 Lakhs upper limit to the MSEs. This scheme is for providing technological assistance for all budding small businesses and other enterprises. It can be anything from a basic technological upgradation for better productivity to a complete technological installation aiming to reduce pollution and energy conservation. The scheme basically provides machinery planting assistance for such small-scale businesses.
What Are The Objectives Of CLCSS Scheme?
The Credit Linked Capital Subsidy Scheme (CLCSS), launched on 1st October 2000, currently provides facilitation for roundabout 51 sub-sectors and products, especially, Khadi and Rural Industries. An upper limit of credit from Rs. 40 Lakhs has been changed to Rs 1 Crore with the subsidy rate going from 12% to 15%, as approved by the Cabinet Committee on Economic Affairs (CCEA).
12 Nodal banks and agencies including SIDBI, NABARD, etc, are a part of the implementation process for the CLCS Scheme. The CLCSS is linked to the term loans that are provided to the MSEs by banks and Financial Institutions. The goal is to provide access to Institutional financing to small and medium enterprises for the induction of improved technologies.
Benefits Of CLCSS Scheme
The scheme has numerous advantages for small-scale industries and businesses. Mainly aims at providing assistance for technology upgradation in small-scale industries and business units by providing a 15% capital subsidy for investments up to Rs 1 crore for eligible applicants. The scheme also induced productivity in non-productive industries. Small Scale Industries both new and already existing are covered under this scheme. There are as many as more than 45 targeted sectors under the CLCSS including IT, Drugs & Pharmaceuticals, Biotech Industry, Khadi & Village Industries, etc.
Who Is Eligible CLCSS Scheme ?
There are certain criteria that an applicant must fulfil according to the CLCSS Guidelines. Such as:
- Term loans must be sanctioned by eligible PLI to avail capital subsidy of 15% rate.
- Industries that are in the transition period of upgrading from small to medium scale through the sanction of loans that are additional.
- Refinance scheme for the nodal agencies is not linked to the capital subsidy eligibility under the scheme.
- Export-driven and labor-intensive sectors and activities.
Avail The Government Grants And Funding For Your Business
Around 1800 MSEs benefited from the CLCSS subsidy 2021-22 with a total amount of approximately Rs.106 Crore of subsidy. Even your business can avail of the subsidy under the CLCSS scheme if you are an eligible applicant.
Begin your application process today with Egniol Services. We provide the best consultation services for startups and small businesses. Our team of experts assists you through the application process to avail benefits of government grants and funding schemes. Small business owners must get in touch with our expert consultant today to open up a wide horizon of business opportunities for their venture.