Circular No.ES/382/2018-19 February 14, 2019
To: Members of the Council
Sub.: Cabinet approves continuation of Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS-TUS) beyond 12th Plan for three years from 2017-18 to 2019-20
Dear Member,
We would like to inform you that the Ministry of Micro, Small & Medium Enterprises has issued a Press Release dated 13th February, 2019 informing about the approval of a three year extension i.e. 2017-18 to 2019-20 of the Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS-TUS) for MSMEs with a total outlay of Rs.2900 crore by the Cabinet Committee on Economic Affairs.
The Credit Linked Capital Subsidy Scheme is for technology upgradation of MSMEs in the country. Under this scheme, technology up-gradation in MSEs is facilitated by providing an upfront capital subsidy of 15% (on institutional finance of upto Rs 1 crore availed by them) for induction of well-established and improved technology in the 51 sub-sectors / products approved. The Scheme was launched in the financial year 2000-2001.
Objective of the scheme-
To improve the competitiveness of MSMEs by integrating various on-going schematic interventions aimed at up-grading technology through Credit Linked Capital Subsidy (CLCS),
Hand holding for zero defect zero effect manufacturing (ZED),
To increase productivity through waste reduction (Lean), design intervention (Design), cloud computing (Digital MSMEs), facilitation of intellectual property (IPR),
To nurture new ideas (Incubation).
Provisions made in this scheme-
To promote entrepreneurship for
SC/STs,
women NER,
Hill States (Jammu & Kashmir, Himachal Pradesh & Uttarakhand)
Island Territories (Andaman & Nicobar and Lakshadweep)
Aspirational Districts/ LWE Districts,
In the above cases the subsidy shall be admissible also for investment in acquisition / replacement of plant & machinery / equipment & technology up-gradation of any kind.
Scheme would be demand driven.
Coverage of the scheme has been made more inclusive.
Promoting reduction in emission level of greenhouse gases through Zero Defect & Zero Effect.
Improving the competitiveness through reduction in defect / wastage during the manufacturing process of the products.
Promoting the innovation, digital empowerment of MSMEs, design interventions and support the protection of intellectual property of MSMEs.
Facilitating technology up-gradation to MSEs, improvement in Quality of products by MSMEs, enhancement in productivity, reduction in waste.
To promote a culture of continuous improvement.
Members may kindly make a note of the above scheme and its provisions.
Thanking you,
Yours faithfully,
S. BALARAJU
EXECUTIVE DIRECTOR
