Special Credit Linked Capital Subsidy Scheme: MSME

Special Credit Linked Capital Subsidy Scheme: MSME


  • The Ministry of Micro, Small and Medium Enterprises (MSMEs) has started the Special Credit Linked Capital Subsidy Scheme (SCLCSS) for the service sector.

Key points

 About Vishesh Credit Linked Capital Subsidy Scheme:

  • The scheme will help in meeting the technology requirements of enterprises in the service sector.
  • There is a provision to provide 25% capital subsidy (subsidy) to SC/ST micro and small enterprises for purchase of plant and machinery and service equipment on technology up-gradation without any sector specific restrictions.


  • The scheme will help MSEs to upgrade technology, improve the quality of services by MSMEs, increase productivity and promote a culture of continuous improvement.
  • It will also promote innovation, digital empowerment and design interventions in MSMEs.

Credit Linked Capital Subsidy Scheme for Technology Upgradation:

  • It was launched in the year 2000.
  • The objective of the scheme is to facilitate technology up-gradation in MSEs by providing an upfront capital subsidy of 15% (on institutional finance up to Rs.1 crore received by them) for incorporating well established and advanced technology in the specified 51 approved sub-sectors/products.
  • In other words the main objective of the scheme is to upgrade its plant and machinery with or without expansion to state-of-the-art technology and to new MSEs who have provided facilities with suitable qualified and proven technology duly approved under the scheme guidelines.

Initiatives to Promote MSMEs Sector

  • The Ministry of Micro, Small and Medium Enterprises (M/oMSME) envisions a vibrant MSME sector by promoting the growth and development of the MSME sector including Khadi, Village and Coir Industries.
  • The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to address policy issues affecting MSMEs and the coverage and investment limits of the sector.

Prime Minister’s Employment Generation Program (PMEGP): It is a credit linked subsidy scheme for setting up new micro enterprises and generating employment opportunities in rural and urban areas of the country.

Scheme of Fund for Upgradation and Reconstruction of Traditional Industries (SFURTI): The objective of this scheme is to organize artisans and traditional industries into clusters and thus provide financial assistance to make them competitive in the current market scenario.

A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE): The scheme is ‘Fund of Funds for Startups in Agro-based Industry’, Rural Livelihoods Business Incubator (LBI), Innovation and Innovation through Technology Business Incubator (TBI) Promotes rural entrepreneurship.

Interest Subvention Scheme for providing Incremental Credit to MSMEs: It was launched by Reserve Bank of India to provide relief of up to 2% to all Statutory MSMEs on their outstanding, existing/incremental term loan/working capital during the period of their validity.  is provided.

Credit Guarantee Scheme for Micro and Small Enterprises: Under this scheme launched to facilitate easy flow of credit, guarantee cover is provided for collateral free loans given to MSMEs.

Micro and Small Enterprises Cluster Development Program (MSE-CDP): It aims at enhancing the productivity and competitiveness as well as capacity of MSEs.

Champions Portal: It aims to help Indian MSMEs become established as National and Global Champions by resolving grievances and providing them encouragement, support.

MSME Solution: It enables direct filing of cases regarding delayed payments by Central Ministries/Departments/CPSEs/State Governments.

Enterprise Registration Portal: This new portal helps the government to collect data based on the number of MSMEs in the country.

MSME Relations: It is a public procurement portal.  It was launched to oversee the implementation of public procurement from MSEs by Central Public Sector Enterprises.

Download yojna ias daily current affairs 22 November 2021

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