The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved continuation of the Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS) beyond 12th Plan for three years from 2017-18 to 2019-20, with a total outlay of ?2,900 crore. The scheme will facilitate technology up-gradation to MSMEs.
CLCS-TUS aims at improving the competitiveness of MSMEs by integrating various ongoing schematic interventions aimed at upgrading technology through credit linked capital subsidy, hand holding for zero defect zero effect manufacturing (ZED), increasing productivity through waste reduction (Lean), design intervention (Design), cloud computing (Digital MSMEs), facilitation of intellectual property (IPR) and nurturing new ideas (Incubation).
Special provisions have been made in the scheme to promote entrepreneurship for SC/STs, women, NER/Hill States (Jammu & Kashmir, Himachal Pradesh and Uttarakhand), island territories (Andaman & Nicobar and Lakshadweep), and aspirational districts/LWE districts, as in these cases the subsidy shall be admissible also for investment in acquisition/replacement of plant and machinery/equipment and technology upgradation of any kind.
The scheme would be demand driven. But its coverage has been made more inclusive. In addition, the scheme through ZED component will promote reduction in emission level of green house gases and improve the competitiveness through reduction in defect/wastage during the manufacturing process of the products.
It will also promote innovation, digital empowerment of MSMEs, design interventions and support the protection of intellectual property of MSMEs.
“The scheme will facilitate technology upgradation to MSMEs, improvement in quality of products by MSMEs, enhancement in productivity, reduction in waste and shall promote a culture of continuous improvement,” an official statement said.