Government Approves Continuation of CLCS-TUS Scheme for MSMEs
The Cabinet Committee on Economic Affairs (CCEA) has approved a three-year extension of the Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS-TUS) for Micro, Small and Medium Enterprises (MSME) with a total outlay of 2,900 crores on 13th February 2019. This scheme will continue beyond the 12th Five Year Plan for three years from 2017-18 to 2019-20.
What is the CLCS-TUS Scheme?
- Under this scheme, an upfront capital subsidy of 15 per cent will be provided to the MSMEs on institutional finance of up to Rs 1 crore availed by them. This will be done to help the MSMEs in employing well-established and improved technology in the specified 51 sub-sectors/products approved.
- The scheme aims to improve the competitiveness of MSMEs by integrating various current schemes aimed at up-grading technology through Credit Linked Capital Subsidy, hand holding for zero defect zero effect manufacturing, increasing productivity through waste reduction, design intervention, cloud computing, facilitation of intellectual property and nurturing new ideas.
- It will also focus on improving the quality of products and enhancement in productivity. This will promote a culture of continuous development.
- The scheme also incorporates special provisions to increase entrepreneurship for SC/STs, women, hill states, island territories and the aspirational districts/ LWE (Left-wing extremism) districts.
Comment
The MSME sector has emerged as a highly vibrant and dynamic sector of the Indian economy. They not only provide employment in the rural areas but are also a prelude to industrialization. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country.
Related Posts
Month: Current Affairs - February, 2019