Credit Linked Capital Subsidy and Technology Up-gradation Scheme | 14 Feb 2019

• The Cabinet Committee on Economic Affairs (CCEA) has approved the continuation of the Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS-TUS) for the year 2017-18 to 2019-20.

About CLCS-TUS

• This scheme aims at improving the competitiveness of MSMEs by integrating various ongoing schematic interventions aimed at up-grading technology through the Credit Linked Capital Subsidy (CLCS),
• Special provisions have been made in this scheme to promote entrepreneurship for SC/STs, women, North Eastern Region, Hill States, Island Territories (Andaman & Nicobar and Lakshadweep) and the Aspirational Districts/ Left Wing Extremism (LWE) Districts.
• The subsidy will be given for investment in acquisition/replacement of plant & machinery/equipment & technology up-gradation of any kind.
• In addition, the scheme through Zero Defect & Zero Effect, component will promote the reduction in emission level of greenhouse gases and improve the competitiveness through the reduction in defect/wastage during the manufacturing process of the products.
• It will also promote the innovation, digital empowerment of MSMEs, design interventions and support the protection of intellectual property of MSMEs.
• The scheme will facilitate technology up-gradation to MSEs, improvement in Quality of products by MSMEs, enhancement in productivity, reduction in waste and shall promote a culture of continuous improvement.
• The Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation of SSI was launched by the Government of India during 2000-01.
• Along with Small Industries Development Bank of India (SIDBI) and the National Bank for Agriculture and Rural Development (NABARD), there are 12 Nodal Banks/Agencies under CLCSS for the implementation of this scheme.