The Cabinet Committee on Economic Affairs (CCEA) has recently given the green light to extend the Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS-TUS) for the fiscal years 2017-18 to 2019-20. This scheme targets enhancing the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) by unifying a variety of ongoing schematic involvements aimed at promoting technology upgrade.
About the CLCS-TUS scheme
The central goal of the CLCS-TUS is to bolster the competitiveness of MSMEs through integration of various schematic interventions. These are primarily geared toward technology up-gradation under the Credit Linked Capital Subsidy. Special provisions have been incorporated within this scheme to foster entrepreneurship among Scheduled Caste/Scheduled Tribes (SC/ST), women, inhabitants of the North Eastern Region, Hill States, Island Territories such as Andaman & Nicobar and Lakshadweep, and Aspirational Districts or Left Wing Extremism (LWE) Districts.
Subsidy Utilization and Innovation Promotion
Under the CLCS-TUS, subsidies will be allocated for investment in the acquisition or replacement plant, machinery, equipment, and any form of technology upgrade. The scheme also promotes reduction in greenhouse gas emissions and improves competitiveness by minimizing defect and wastage during the manufacturing process of products through its Zero Defect & Zero Effect component.
The scheme aims to encourage innovation, digital empowerment of MSMEs, design interventions, and support the protection of the intellectual property of MSMEs.
Benefits of the Scheme
Among the benefits of the CLCS-TUS scheme include facilitating technology upgrade for MSEs, improving product quality by MSMEs, boosting productivity, reducing waste and promoting a culture of continuous improvement.
| Benefits | Description |
|---|---|
| Technology Upgrade | Facilitate technological advancement for MSEs |
| Product Quality Improvement | Enhance product quality by MSMEs |
| Productivity Boost | Enhance productivity levels and efficiency |
| Waste Reduction | Promote waste reduction in manufacturing process |
| Culture of Continuous Improvement | Instill a culture of continual improvement among MSMEs |
Historical Context and Implementation
The Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation of Small Scale Industries (SSI) was rolled out by the Indian government during the 2000-01 fiscal year. This scheme is implemented through 12 Nodal Banks/Agencies which include the Small Industries Development Bank of India (SIDBI) and the National Bank for Agriculture and Rural Development (NABARD). These institutions have thus been integral in the implementation of this scheme since its inception.
